Bankruptcy Exemptions in New York State - Personal Property Laws
Civil Practice Law & Rules Section 5205 (a) sets forth personal property exempt from forfeiture in New
York bankruptcy cases. The following personal property when owned by any person is exempt from application
to the estate except where liability is for the purchase price of the exempt property or was recovered by a
domestic, laboring person or mechanic for work performed by that person in such capacity: 1) all stoves kept
for use in the debtor's dwelling house and necessary fuel therefore for sixty days; one sewing machine
with its appurtenances; 2) the family bible, family pictures, and school books used by the debtor or in
the family; and other books, not exceeding fifty dollars in value, kept and used as part of the family or
debtor's library; 3) a seat or pew occupied by the debtor or the family in a place of public worship; 4)
domestic animals with the necessary food for those animals for sixty days, provided that the total value
of such animals and food does not exceed four hundred fifty dollars; all necessary food actually provided
for the use of the debtor or his family for sixty days; 5) all wearing apparel, household furniture,
one mechanical, gas or electric refrigerator, one radio receiver, one television set, crockery, tableware
and cooking utensils necessary for the debtor and the family; 6) a wedding ring; a watch not exceeding
thirty-five dollars in value; and 7) necessary working tools and implements, including those of a mechanic,
farm machinery, team, professional instruments, furniture and library, not exceeding six hundred dollars
in value, together with the necessary food for the team for sixty days, provided, however, that the
articles specified in this paragraph are necessary for a debtor filing New York bankruptcy to carry on
with a profession or calling.
Operation of bankruptcy exemptions provided by New York
State laws
Value in New York bankruptcy cases is determined based upon the fair market price, less amounts owed.
"Fair market" is not a retail value expected by professional sellers or advertisers. Likewise, forced
liquidation values are not representative of a fair market. The value of property in New York bankruptcy
proceedings is an estimate of an agreement reached
between a willing buyer and a willing seller under current market conditions. Creditors may file objections to
the calculation of equity which may be subject to disbursement.
In recent years, it seems many New York bankruptcy laws
and traditions have been under strict scrutiny. In general, the trend is
to limit individual rights while expanding the rights of corporations
who file Ch. 11. In NY State, approximately 98% of all cases are filed
for individuals under Chapter 7 & 13, while Ch. 11 cases account for
approximately 2% of all cases.
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