Bankruptcy Exemptions, Medical Aids, New York State Laws
Civil Practice Law & Rules Section 5205 (h) specifically applies to debtors in New York bankruptcy
proceedings, allowing the following personal property to be exempt from application to the satisfaction of liability,
except as a court determined to be unnecessary for the reasonable requirements of the judgment debtor
and his dependents: 1) any and all medical and dental accessions to the human body and all
personal property or equipment that is necessary or proper to maintain or assist in sustaining or maintaining
one or more major life activities or is utilized to provide mobility for a person with a permanent
disability; and 2) any guide dog, service dog or hearing dog, or any animal trained to aid or assist a
person with a permanent disability and actually being so used by such person, together with any
and all food or feed for any such dog or other animal.
Operation of New York bankruptcy laws
The right of a judgment debtor to accelerate payment of part or all of the death benefit or special surrender
value under a life insurance policy, or to enter into a viatical settlement is exempt from application
to the satisfaction of liability. An amount not exceeding ten thousand dollars in an account, or in the aggregate for more
than one account, is exempt where the judgment debtor is the account owner of such account or accounts.
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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