N.Y. Civil Practice Law & Rules § 5205: Personal property exempt from application to the satisfaction of money judgments

§ 5205. Personal property exempt from application to the satisfaction

of money judgments. (a) Exemption for personal property. The following

personal property when owned by any person is exempt from application to

the satisfaction of a money judgment except where the judgment is for

the purchase price of the exempt property or was recovered by a

domestic, laboring person or mechanic for work performed by that person

in such capacity:

1. all stoves and home heating equipment kept for use in the judgment

debtor's dwelling house and necessary fuel therefor for one hundred

twenty days; one sewing machine with its appurtenances;

2. religious texts, family pictures and portraits, and school books

used by the judgment debtor or in the family; and other books, not

exceeding five hundred dollars in value, kept and used as part of the

family or judgment debtor's library;

3. a seat or pew occupied by the judgment debtor or the family in a

place of public worship;

4. domestic animals with the necessary food for those animals for one

hundred twenty days, provided that the total value of such animals and

food does not exceed one thousand dollars; all necessary food actually

provided for the use of the judgment debtor or his family for one

hundred twenty days;

5. all wearing apparel, household furniture, one mechanical, gas or

electric refrigerator, one radio receiver, one television set, one

computer and associated equipment, one cellphone, crockery, tableware

and cooking utensils necessary for the judgment debtor and the family;

all prescribed health aids;

6. a wedding ring; a watch, jewelry and art not exceeding one thousand

dollars in value;

7. tools of trade, necessary working tools and implements, including

those of a mechanic, farm machinery, team, professional instruments,

furniture and library, not exceeding three thousand dollars in value,

together with the necessary food for the team for one hundred twenty

days, provided, however, that the articles specified in this paragraph

are necessary to the carrying on of the judgment debtor's profession or

calling;

8. one motor vehicle not exceeding four thousand dollars in value

above liens and encumbrances of the debtor; if such vehicle has been

equipped for use by a disabled debtor, then ten thousand dollars in

value above liens and encumbrances of the debtor; provided, however,

that this exemption for one motor vehicle shall not apply if the debt

enforced is for child support, spousal support, maintenance, alimony or

equitable distribution, or if the state of New York or any of its

agencies or any municipal corporation is the judgment creditor; and

9. if no homestead exemption is claimed, then one thousand dollars in

personal property, bank account or cash.

(b) Exemption of cause of action and damages for taking or injuring

exempt personal property. A cause of action, to recover damages for

taking or injuring personal property exempt from application to the

satisfaction of a money judgment, is exempt from application to the

satisfaction of a money judgment. A money judgment and its proceeds

arising out of such a cause of action is exempt, for one year after the

collection thereof, from application to the satisfaction of a money

judgment.

(c) Trust exemption. 1. Except as provided in paragraphs four and five

of this subdivision, all property while held in trust for a judgment

debtor, where the trust has been created by, or the fund so held in

trust has proceeded from, a person other than the judgment debtor, is

exempt from application to the satisfaction of a money judgment.

2. For purposes of this subdivision, all trusts, custodial accounts,

annuities, insurance contracts, monies, assets or interests established

as part of, and all payments from, either any trust or plan, which is

qualified as an individual retirement account under section four hundred

eight or section four hundred eight A of the United States Internal

Revenue Code of 1986, as amended, a Keogh (HR-10), retirement or other

plan established by a corporation, which is qualified under section 401

of the United States Internal Revenue Code of 1986, as amended, or

created as a result of rollovers from such plans pursuant to sections

402 (a) (5), 403 (a) (4), 408 (d) (3) or 408A of the Internal Revenue

Code of 1986, as amended, or a plan that satisfies the requirements of

section 457 of the Internal Revenue Code of 1986, as amended, shall be

considered a trust which has been created by or which has proceeded from

a person other than the judgment debtor, even though such judgment

debtor is (i) in the case of an individual retirement account plan, an

individual who is the settlor of and depositor to such account plan, or

(ii) a self-employed individual, or (iii) a partner of the entity

sponsoring the Keogh (HR-10) plan, or (iv) a shareholder of the

corporation sponsoring the retirement or other plan or (v) a participant

in a section 457 plan.

3. All trusts, custodial accounts, annuities, insurance contracts,

monies, assets, or interests described in paragraph two of this

subdivision shall be conclusively presumed to be spendthrift trusts

under this section and the common law of the state of New York for all

purposes, including, but not limited to, all cases arising under or

related to a case arising under sections one hundred one to thirteen

hundred thirty of title eleven of the United States Bankruptcy Code, as

amended.

4. This subdivision shall not impair any rights an individual has

under a qualified domestic relations order as that term is defined in

section 414(p) of the United States Internal Revenue Code of 1986, as

amended or under any order of support, alimony or maintenance of any

court of competent jurisdiction to enforce arrears/past due support

whether or not such arrears/past due support have been reduced to a

money judgment.

5. Additions to an asset described in paragraph two of this

subdivision shall not be exempt from application to the satisfaction of

a money judgment if (i) made after the date that is ninety days before

the interposition of the claim on which such judgment was entered, or

(ii) deemed to be voidable transactions under article ten of the debtor

and creditor law.

(d) Income exemptions. The following personal property is exempt from

application to the satisfaction of a money judgment, except such part as

a court determines to be unnecessary for the reasonable requirements of

the judgment debtor and his dependents:

1. ninety per cent of the income or other payments from a trust the

principal of which is exempt under subdivision (c); provided, however,

that with respect to any income or payments made from trusts, custodial

accounts, annuities, insurance contracts, monies, assets or interest

established as part of an individual retirement account plan or as part

of a Keogh (HR-10), retirement or other plan described in paragraph two

of subdivision (c) of this section, the exception in this subdivision

for such part as a court determines to be unnecessary for the reasonable

requirements of the judgment debtor and his dependents shall not apply,

and the ninety percent exclusion of this paragraph shall become a one

hundred percent exclusion;

2. ninety per cent of the earnings of the judgment debtor for his

personal services rendered within sixty days before, and at any time

after, an income execution is delivered to the sheriff or a motion is

made to secure the application of the judgment debtor's earnings to the

satisfaction of the judgment; and

3. payments pursuant to an award in a matrimonial action, for the

support of a wife, where the wife is the judgment debtor, or for the

support of a child, where the child is the judgment debtor; where the

award was made by a court of the state, determination of the extent to

which it is unnecessary shall be made by that court.

(e) Exemptions to members of armed forces. The pay and bounty of a

non-commissioned officer, musician or private in the armed forces of the

United States or the state of New York; a land warrant, pension or other

reward granted by the United States, or by a state, for services in the

armed forces; a sword, horse, medal, emblem or device of any kind

presented as a testimonial for services rendered in the armed forces of

the United States or a state; and the uniform, arms and equipments which

were used by a person in the service, are exempt from application to the

satisfaction of a money judgment; provided, however, that the provisions

of this subdivision shall not apply to the satisfaction of any order or

money judgment for the support of a person's child, spouse, or former

spouse.

(f) Exemption for unpaid milk proceeds. Ninety per cent of any money

or debt due or to become due to the judgment debtor for the sale of milk

produced on a farm operated by him and delivered for his account to a

milk dealer licensed pursuant to article twenty-one of the agriculture

and markets law is exempt from application to the satisfaction of a

money judgment.

(g) Security deposit exemption. Money deposited as security for the

rental of real property to be used as the residence of the judgment

debtor or the judgment debtor's family; and money deposited as security

with a gas, electric, water, steam, telegraph or telephone corporation,

or a municipality rendering equivalent utility services, for services to

judgment debtor's residence or the residence of judgment debtor's

family, are exempt from application to the satisfaction of a money

judgment.

(h) The following personal property is exempt from application to the

satisfaction of money judgment, except such part as a court determines

to be unnecessary for the reasonable requirements of the judgment debtor

and his dependents:

1. any and all medical and dental accessions to the human body and all

personal property or equipment that is necessary or proper to maintain

or assist in sustaining or maintaining one or more major life activities

or is utilized to provide mobility for a person with a permanent

disability; and

2. any guide dog, service dog or hearing dog, as those terms are

defined in section one hundred eight of the agriculture and markets law,

or any animal trained to aid or assist a person with a permanent

disability and actually being so used by such person, together with any

and all food or feed for any such dog or other animal.

(i) Exemption for life insurance policies. The right of a judgment

debtor to accelerate payment of part or all of the death benefit or

special surrender value under a life insurance policy, as authorized by

paragraph one of subsection (a) of section one thousand one hundred

thirteen of the insurance law, or to enter into a viatical settlement

pursuant to the provisions of article seventy-eight of the insurance

law, is exempt from application to the satisfaction of a money judgment.

(j) Exemption for New York state college choice tuition savings

program trust fund payment monies. Monies in an account created pursuant

to article fourteen-A of the education law are exempt from application

to the satisfaction of a money judgment as follows:

1. one hundred percent of monies in an account established in

connection with a scholarship program established pursuant to such

article is exempt;

2. one hundred percent of monies in an account is exempt where the

judgment debtor is the account owner and designated beneficiary of such

account and is a minor; and

3. an amount not exceeding ten thousand dollars in an account, or in

the aggregate for more than one account, is exempt where the judgment

debtor is the account owner of such account or accounts.

For purposes of this subdivision, the terms "account owner" and

"designated beneficiary" shall have the meanings ascribed to them in

article fourteen-A of the education law.

(k) Notwithstanding any other provision of law to the contrary, where

the judgment involves funds of a convicted person as defined in

paragraph (c) of subdivision one of section six hundred thirty-two-a of

the executive law, and all or a portion of such funds represent

compensatory damages awarded by judgment to a convicted person in a

separate action, a judgment obtained pursuant to such section six

hundred thirty-two-a shall not be subject to execution or enforcement

against the first ten percent of the portion of such funds that

represents compensatory damages in the convicted person's action;

provided, however, that this exemption from execution or enforcement

shall not apply to judgments obtained by a convicted person prior to the

effective date of the chapter of the laws of two thousand one which

added this sentence or to any amendment to such judgment where such

amendment was obtained on or after the effective date of this

subdivision. For the purpose of determining the amount of a judgment

which is not subject to execution or enforcement pursuant to this

subdivision: (i) the court shall deduct attorney's fees from that

portion of the judgment that represents compensatory damages and

multiply the remainder of compensatory damages by ten percent; and (ii)

when the judgment includes compensatory and punitive damages, attorney's

fees shall be pro rated among compensatory and punitive damages in the

same proportion that all attorney's fees bear to all damages recovered.

(l) Exemption of banking institution accounts into which statutorily

exempt payments are made electronically or by direct deposit. 1. If

direct deposit or electronic payments reasonably identifiable as

statutorily exempt payments were made to the judgment debtor's account

in any banking institution during the forty-five day period preceding

the date a restraining notice was served on the banking institution or

an execution was served upon the banking institution by a marshal or

sheriff, then two thousand five hundred dollars in the judgment debtor's

account is exempt from application to the satisfaction of a money

judgment. Nothing in this subdivision shall be construed to limit a

creditor's rights under 42 U.S.C. § 659 or 38 U.S.C. § 5301 or to

enforce a child support, spousal support, alimony or maintenance

obligation. Nothing in this subdivision shall alter the exempt status of

funds that are protected from execution, levy, attachment, garnishment

or other legal process, pursuant to this section or under any other

provision of state or federal law, or shall affect the right of a

judgment debtor to claim such exemption.

2. For purposes of this article, "statutorily exempt payments" means

any personal property exempt from application to the satisfaction of a

money judgment under any provision of state or federal law. Such term

shall include, but not be limited to, payments from any of the following

sources: social security, including retirement, survivors' and

disability benefits, supplemental security income or child support

payments; veterans administration benefits; public assistance; workers'

compensation; unemployment insurance; public or private pensions;

railroad retirement; black lung benefits; and emergency relief funds.

3. (i) Beginning on April first, two thousand twelve, and at each

three-year interval ending on April first thereafter, the dollar amount

of the exemption provided in this section, subdivisions (e) and (h) of

section fifty-two hundred twenty-two, subdivision (a) of section

fifty-two hundred thirty and subdivision (e) of section fifty-two

hundred thirty-two of this article in effect immediately before that

date shall be adjusted as provided in subparagraph (ii) of this

paragraph.

(ii) The superintendent of financial services shall determine the

amount of the adjustment based on the change in the Consumer Price Index

for All Urban Consumers, New York-Northern New Jersey-Long Island,

NY-NJ-CT-PA, published by the U.S. Department of Labor, Bureau of Labor

Statistics, for the most recent three-year period ending on December

thirty-first preceding the adjustment, with each adjusted amount rounded

to the nearest twenty-five dollars.

(iii) Beginning on April first, two thousand twelve, and at each

three-year interval ending on April first thereafter, the superintendent

of financial services shall publish the current dollar amount of the

exemption provided in this section, subdivisions (e) and (h) of section

fifty-two hundred twenty-two, subdivision (a) of section fifty-two

hundred thirty and subdivision (e) of section fifty-two hundred

thirty-two of this chapter, together with the date of the next scheduled

adjustment. The publication shall be substantially in the form set

below:

CURRENT DOLLAR AMOUNT OF EXEMPTION FROM ENFORCEMENT OF JUDGMENT UNDER

NEW YORK CIVIL PRACTICE LAW AND RULES Sections 5205(l), 5222(e),

5222(h), 5230(a), and 5232(e)

The following is the current dollar amount of exemption from

enforcement of money judgments under CPLR sections 5205(l), 5222(e),

5222(h), 5230(a), and 5232(e), as required by CPLR section 5205(l)(3):

(Amount)

This amount is effective on April 1, (year) and shall not apply to

cases commenced before April 1, (year). The next adjustment is scheduled

for April 1, (year).

(iv) Adjustments made under subparagraph (i) of this paragraph shall

not apply with respect to restraining notices served or executions

effected before the date of the adjustment.

(m) Nothing in subdivision (l) of this section limits the judgment

debtor's exemption rights in this section or under any other law.

(n) Notwithstanding any other provision of law to the contrary, the

term "banking institution" when used in this article shall mean and

include all banks, trust companies, savings banks, savings and loan

associations, credit unions, foreign banking corporations incorporated,

chartered, organized or licensed under the laws of this state, foreign

banking corporations maintaining a branch in this state, and nationally

chartered banks.

(o) The provisions of subdivisions (l), (m) and (n) of this section do

not apply when the state of New York, or any of its agencies or

municipal corporations is the judgment creditor, or if the debt enforced

is for child support, spousal support, maintenance or alimony, provided

that the restraining notice or execution contains a legend at the top

thereof, above the caption, in sixteen point bold type with the

following language: "The judgment creditor is the state of New York, or

any of its agencies or municipal corporations, AND/OR the debt enforced

is for child support, spousal support, maintenance or alimony.".

(p) Exemption for emergency relief funds. Any payments to individuals,

including tax refunds, recovery rebates, refundable tax credits, and any

advances of any tax credits, under the federal Families First

Coronavirus Response Act (FFCRA), Coronavirus Aid, Relief, and Economic

Security Act of 2020 (CARES Act), Consolidated Appropriations Act of

2021, and American Rescue Plan Act of 2021 (ARPA) are exempt from

application to the satisfaction of a money judgment. This exemption

shall not apply (i) if the debt enforced is for child support, spousal

support, maintenance, alimony, a distributive award in a matrimonial

action, or restitution in a family offense proceeding, or (ii) to that

portion of any money judgment awarded on a claim that the emergency

relief funds referenced herein are the rightful property of the judgment

creditor.