The New York Homestead Exemption

In bankruptcy, a homestead exemption protects equity in your home. Here, you'll find specific information about the homestead exemption in New York. For general information about how the homestead exemption works in both Chapter 7 and Chapter 13 bankruptcy, read The Homestead Exemption in Bankruptcy. For more bankruptcy information, read Filing for Bankruptcy in New York State (NY).

How Much Are the Homestead Exemptions Available in a New York Bankruptcy?

New York lets filers use either the federal exemption system or New York's state exemption system, so you'll have two homestead amounts to choose between. However, you can't mix exemptions from both lists, so you'll want to select the system that will protect your most important assets.

We've listed both exemption amounts below to help you make an informed choice. We've also included links to more complete federal and state exemption lists so you'll have an easier time deciding which set will work best for you.

If you hold property as tenancy by entirety with your spouse: If one spouse files for bankruptcy, not both, the bankruptcy trustee might be prevented from using the property equity to pay off debts. However, this area is tricky. Talk with a local bankruptcy attorney about filing considerations for spouses to ensure you don't lose valuable property.

What Property Is Protected by New York's Homestead Exemptions?

In New York, the homestead exemption applies to real property, including your home, condominium, or co-op. It also applies to a mobile home.

When Can You Use a Homestead Exemption in Your New York Bankruptcy?

You can file for bankruptcy in New York after living there for more than 180 days. However, you must live in New York much longer before using New York exemptions, at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.

But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.

Finding the New York Bankruptcy Homestead Exemption Statute

You'll find New York's homestead exemption in the New York state statutes at the Code Civil Practice Law and Rules § 5206 on the New York State Senate website. Also, New York's exemption amounts adjust every three years (figures reflect the April 1, 2021 changes).

But you won't find the most recent homestead amount in the statute. Go to New York's Department of Financial Services website and search for "Exemption from Application to the Satisfaction of Money Judgments." Learn about finding state statutes in Laws and Legal Research.

Consult a New York Bankruptcy Lawyer

We've covered some of the most basic rules you'll encounter when protecting your home in bankruptcy. However, you'll also need to meet other timing and exemption requirements to prevent losing your home. Find out more about keeping your home in Chapter 7 or Chapter 13 or consult a bankruptcy lawyer.

Need More Bankruptcy Help?

Did you know Nolo has made the law easy for over fifty years? It's true, and we want to ensure you find what you need. Below you'll find more articles explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!

We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.

Updated September 22, 2023