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Eastern District of New York (EDNY)- The debtor must file completed petitions, schedules, and forms in the district in which they live or have lived for more than half of the last six months. Residents of Brooklyn, Queens, Staten Island, Nassau, and Suffolk counties must file in the Eastern District. The procedure for filing will vary depending on which district the debtor files in. Petitions for the Eastern District can be filed at the U.S. Bankruptcy Court located at 271 Cadman Plaza East, Brooklyn, NY 11201, in the Clerk's Office, Suite 1509. Exempt Income- Pursuant to various New York statutes, certain forms of income are exempt from execution by creditors. These include pension and retirement benefits, Social Security and S.S.I., unemployment compensation, veteran's benefits, public assistance, alimony, support and maintenance, and crime victim's compensation. See Debtor and Creditor Law §282(2)(3); CPLR 5205. Exempt Property- Property or the value in property that a debtor is allowed to keep pursuant to the Bankruptcy Code or applicable state law free from the claims of creditors who do not have liens. Virtually all of a debtor's other property is subject to transfer to the trustee for the benefit of their creditors. New York State is no longer an "opt out" state from the Federal Bankruptcy Exemptions, so the Federal bankruptcy exemptions do apply in New York and the debtor may chose to use them. BAPCPA substantially changed the domiciliary requirements for claiming an exemption under state law. If a debtor chooses to claim an exemption under state law the state exemption that applies is determined by the state in which the debtor's domicile has been located for the 730 days (2 years) immediately preceding the petition filing date .If the debtor did not live in that domicile for that period then what controls is the state in which the debtor was domiciled for the 180 days immediately preceding the 730 day period. If the NYS laws apply the debtor must use the exemptions scattered throughout various New York statutes. Some of the primary exemptions include up to a $204,825 homestead exemption, one motor vehicle not exceeding $5,500, household goods and furnishings, clothing, tools of the trade, life insurance policies, disability, retirement, and other benefits, pension, and rights to compensation for injury or loss. Property is not exempt unless it is claimed as exempt property on Schedule C. See Debtor and Creditor Law §282; CPLR §§5205, 5206. Judgment Proof- Where all or most of the debtor's income and property are exempt under New York State law and there is no prospect of any change in the situation, a client is "judgment proof". Although they may be sued, any judgments obtained against them cannot be collected from the debtor's exempt income or property. Sources
This information is general and is not legal advice. Amounts are adjusted periodically; consult an attorney about your case. |
Bankruptcy Glossary of Terms
Part 4 of 9