New York Bankruptcy Laws, Homestead Exemption, Occupancy, Designation

Civil Practice Law & Rules Section 5206 provides, in part, the homestead exemption ceases if the property ceases to be occupied as a residence by a person for whose benefit it may so continue, except where the suspension of occupation is for a period not exceeding one year, and occurs in consequence of injury to, or destruction of, the dwelling house upon the premises.  The homestead exemption continues after the death of the person in whose favor the property was exempted for the benefit of the surviving spouse and surviving children until the majority of the youngest surviving child and until the death of the surviving spouse. An exception applies to occupation of land set apart as a family or private burying ground, which is exempt from application to the satisfaction of a money judgment, upon the following conditions only: 1) a portion of it must have been actually used for that purpose, 2) it must not exceed in extent one-fourth of an acre; and 3) it must not contain any building or structure, except one or more vaults or other places of deposit for the dead or mortuary monuments.

Operation of New York bankruptcy laws

In practice, "occupation" of a home requires a physical presence of the debtor on a regular basis. Absence from the country because of military service can not form the sole basis of abandonment.

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.

Back to New York Bankruptcy Laws content page.