Bill > A07940

This bill modifies exemption rules for motor vehicles and homestead properties in New York state, primarily affecting how these assets are protected during bankruptcy proceedings and debt collection. The bill increases the motor vehicle exemption from $4,000 to $10,000 for standard vehicles, and from $10,000 to $25,000 for vehicles modified for disabled users. It also establishes new homestead exemption amounts that vary by county: $600,000 for more expensive counties like New York City and its suburbs, $500,000 for certain upstate counties, and $300,000 for remaining counties. The bill introduces a mechanism for indexing these homestead exemption amounts every three years based on changes in median housing values, using data from the American Community Survey. Additionally, the legislation limits bankruptcy debtors to one motor vehicle exemption and introduces rules for splitting homestead exemptions when multiple owners are involved, such as allowing a co-owner to claim a proportional share of the exemption based on their equity interest. These changes aim to provide more consistent and flexible protections for debtors while accounting for regional differences in property values.

Budget and Finance, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A7940