New York’s current bankruptcy exemption levels are outdated and fail to reflect today’s housing and transportation costs. Assembly Bill A7940, sponsored by Assemblymember Harry Bronson, would modernize the homestead and motor vehicle exemptions—protecting working families, seniors, and individuals facing financial hardship from losing their homes or cars during bankruptcy.

KEY PROVISIONS OF A7940:

• Maintains New York’s three-tier regional homestead structure
• Increases homestead exemptions to:
  • $600,000 (from $150,000) in downstate counties
  • $500,000 (from $125,000) in mid-Hudson/Albany-area counties
  • $300,000 (from $75,000) in the rest of the state
• Limits the homestead exemption to one per household
• Indexes exemption levels to regional housing price trends
• Increases the motor vehicle exemption to $10,000 (from $4,825)

 

Without this legislation, homeowners risk losing their homes despite seeking legal protections through bankruptcy. Urge your representative to help pass A7940 to update New York’s bankruptcy laws and protect struggling families across the state.