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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