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Maintaining Assets When Filing for Bankruptcy

In bankruptcy, you won’t get nothing back. To safeguard your possessions, you’ll rely on your state’s bankruptcy exemption regulations. In order to maximize what you’ll keep in your case, you need first comprehend the important exceptions that are listed below.

Property that is exempt and nonexempt. By using an exception, you can continue to safeguard your property. You will either lose the property in a Chapter 7 bankruptcy or be required to pay for it in a Chapter 13 repayment plan when a bankruptcy exemption doesn’t protect it.

Choose between federal and state exemptions. In contrast to the majority of states, New York gives you the option of selecting either the state exemption list or the list of federal bankruptcy exemptions. You can use the federal non-bankruptcy exemptions if you use the New York exemptions.

Exemptions are doubled. If both spouses are filing jointly and they own the property, unless otherwise stated, the exemption amount can be doubled.

All filers are able to protect retirement accounts. You are allowed to maintain up to $1,512,350 in tax-exempt retirement accounts per person, including 401(K)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, defined benefit plans, standard and Roth IRAs (for cases filed between April 1, 2022, and March 31, 2025).

Bankruptcy Exemptions in New York

Here are a few frequently used bankruptcy exemptions in New York. Remember that if both spouses have an ownership interest in the property, couples filing jointly in New York can double the exemption amount in each category.