New York Homestead Exemption

October 17, 2009 By

The New York homestead exemption is $50,000 per debtor-homeowner. This means that when you file for bankruptcy in New York and own a home, you can have up to $50,000 of equity in your primary residence ($100,000 for a married couple) and your home will not be taken or threatened by the bankruptcy trustee.

If you have a mortgage you must keep paying it or the mortgage holder can foreclose on the home.

It’s important to remember that the homestead exemption may be used only on your primary residence – so if you own multiple properties you can use it in only the one in which you live. Similarly, you cannot claim a homestead exemption on a property that is purely an investment or rental property. If you live in the property and rent the other part out, then it is still a primary residence and you may use the homestead exemption.

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  • gregoryambus

    Can the home owners exemption be used if a house is being sold for liens on the property, or is it only when filing for bankruptcy???

  • gregoryambus

    Can the homestead exemption be used if no bankruptcy has been filed, as when creditors are trying to force the sale of the property owned by a married couple as a primary residence???

  • JayFleischman

    The homestead exemption is not bankruptcy-centric. In other words, it creates a shield of equity against creditor actions for primary residences in New York regardless of whether you're filing for bankruptcy or not.

  • gregoryambus

    If the husband and wife are divorcing and attempting to use the homestead exemption, yet no creditor is currently forcing the sale of their property, and the husband admits to creating 1.5 liens on the property, it sems like the tenancy by the entirety that they hold by being married, would then become tenancy in common upon divorce, if the property was then sold, it seems that the liens would thoretically only attach to the husband's portion of the property having admitted they are solely his debts, and the wife should get $50,000.00 in surplus left over after the liens were cleared in selling off the property?? Do you believe it would work that way??

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