New York Bankruptcy Exemption Calculator 2026
New York's bankruptcy exemptions define which assets are protected from creditors and the bankruptcy trustee when you file. Understanding your exemptions is critical before filing Chapter 7, because the trustee can only liquidate assets that exceed exemption limits. In Chapter 13, exemptions still matter — they set the floor for how much creditors must receive in your repayment plan.
New York's homestead exemption protects $89,975 in home equity (Varies by county; up to $179,975 in NYC metro). Vehicle equity up to $4,825 is protected. All qualified retirement accounts (401k, IRA, pension) are fully protected in every state. New York's wildcard exemption of $1,175 can be applied to any asset not covered by a specific exemption.
New York 2026 Bankruptcy Exemption Limits
| Asset Type | Protected Amount | Details |
|---|---|---|
| Homestead / Home Equity | $89,975 | Varies by county; up to $179,975 in NYC metro |
| Motor Vehicle | $4,825 | Per vehicle; some states allow 1 vehicle only |
| Retirement Accounts | 100% | 401(k), IRA, pension, 403(b) fully protected |
| Wildcard | $1,175 | Applies to any asset |
| Personal Property | $11,975 | Household goods, furniture, clothing, electronics |
| Wages / Earnings | 90% of earnings or 30× minimum wage | Applies to wages earned but not yet paid |
New York Chapter 7 Median Income (Reference)
To use the New York exemptions in Chapter 7, you must also pass the means test. The 2026 income thresholds for New York are: 1 person $71,136/year; 2 people $90,492/year; 3 people $106,164/year; 4 people $120,936/year.
Frequently Asked Questions
Does New York allow filers to choose federal bankruptcy exemptions instead?
New York requires filers to use state exemptions and does not permit opting into the federal bankruptcy exemption scheme. Consult an attorney to determine which set of exemptions protects more of your assets.
What happens to assets that exceed New York's exemption limits?
In Chapter 7, if your equity in an asset exceeds New York's exemption limit, the trustee may liquidate that asset, return the exempt amount to you, and distribute the remainder to creditors. You can sometimes avoid this by paying the non-exempt amount to the trustee (a "buyout") or by converting to Chapter 13. In Chapter 13, non-exempt asset equity affects the minimum payment to unsecured creditors but does not result in asset sales.
Are retirement accounts really fully protected in New York bankruptcy?
Yes. ERISA-qualified retirement accounts (401k, 403b, pension, profit-sharing plans) are protected by federal law regardless of state. Traditional and Roth IRAs are protected up to $1,512,350 per debtor under federal bankruptcy law. Most states, including New York, also protect state-specific retirement vehicles. This protection applies in both Chapter 7 and Chapter 13.