What Property Can I Keep and Still File for Bankruptcy?

Under New York State Law, each person filing for bankruptcy can keep $10,000 in equity in a home over the amount of mortgages or other liens. If there is more equity in you home that the allowed amount, and you file chapter 7 bankruptcy, the Trustee will require you to pay him the difference, or he will sell your home. If you file chapter 13 bankruptcy, you can pay the equity to the Trustee, for distribution to creditors, over five years.

• If you don't own a home, you can keep $2,500 in cash.
• You are entitled to equity in one motor vehicle of $2,400.
• You can keep the first $7,500 you would otherwise receive from a personal injury case.
• You can keep your ordinary household goods and clothing.
• Your retirement plan is exempt.
• Your life insurance is exempt, with certain exceptions.
• One watch worth $35 is exempt.
• A cemetery plot is exempt.
• Tools are exempt up to $600.

Social Security benefits are exempt, as well as Workers compensation, and Disability Insurance and Unemployment Insurance.

Money in Uniform Gifts to Minors Act childrens' savings accounts with the child's social security number which was not placed in the account by the parent before the parent's bankruptcy is not property of the bankruptcy estate.