The Law Firm of VAUGHN & WEBER, PLLC

Governor David A. Paterson has signed into law S.7034-A/A.8735-A, which will increase the amount of New York’s bankruptcy exemptions and allow NY debtors to choose  the federal (see Federal Bankruptcy Exemptions & NY) or the new New York state exemptions.

The following is a summary of the changes:

• Increases the homestead exemption under Section 5206 of the CPLR from $50,000 to: $150,000 for the counties of Kings, New York, Queens, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam; $125,000 for the counties of Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster; $75,000 for the remaining counties in the state;

• Increases motor vehicle exemption under section 282 of the Debtor and Creditor Law from $2,400 to $4,000  for one motor vehicle. If such vehicle is equipped for use by a disabled person, the exemption amount is $10,000 in bankruptcy;

• Increases the amount of the aggregate individual bankruptcy exemption for certain annuities and personal property under section 283 of the debtor and creditor law from $5,000 to $10,000;

• Adds a new section 285 to the Debtor and Creditor Law permitting debtors to choose either the current federal exemptions or the new New York exemptions;

• Increase the exemption for books and religious texts from $50 to $500;

• Increases the domestic animals and food exemption from $450 to $1,000;

• Increases one watch from $35 to $1,000 and adds jewelry and art to this category;

• Increases the tools of trade exemption from $600 to $3,000;

• Adds a wildcard exemption, if no homestead exemption is claimed,  of $1,000 for personal property, bank account, or cash;

• Provides for the exemption of one computer and associated equipment, and one cell phone;

• Exempt up to $6000 cash if no homestead exemption taken and aggregate individual bankruptcy exemption totals $5000 or less.

The entire bill can be found here or here .

The Press Release issued by the Governor’s office.

As always, The Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island at 217 Willis Avenue in Mineola, NY 11501. You can Contact us at (516) 858-2620 to speak with an attorney.

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