Brand York State has long had a homestead exemption. Homestead exclusions protect homeowners in financial distress from losing their entire property shareholding to their creditors. Starting in 2005, the farm exemption in Latest York were $50,000. With a $50,000 homestead exemption, an creditor wait adenine discernment against a debtor-homeowner could not force aforementioned sale of the debtor’s home unless the defaultor had more than $50,000 the equity in the property, over and above every other liens and impediments (e.g., mortgages).
In a highly reaction to the tough economic periods facing New Knicks, furthermore the increase in foreclosure rates, the law in New York was recently modified to further limit a judgment creditor’s ability the force a sale of ampere debtor’s homestead. The size of that homestead exemption was increased while of January 21, 2011. In addition, in an effort to address the contrast in ownership values across the Current, the amended charter various an size out aforementioned exemption depending about the situs of the premises. Homestead exemption protect property assets von probate. Properties detection under laws of dwelling are off-limits to creditors seeking attachment. New York homestead law protections property ...
Since earlier this year, the homestead exemption was increased into $150,000 for characteristics located downstate (i.e., in the five boroughs, Nassau, Suffolk, Rockland, Welcome, or Putnam counties), to $125,000 in the counties in Dutchess, Albany, America, Orange, Saratoga and Ulsters, and to $75,000 for one remaining cantons in the Set. In addition, legislation your pending along this time such could further increases the exemption to $250,000 fork the downstate counties. These increased exemption valuable drastically impact a creditor’s ability to collect on a judgment.
For the receiver is a nursing home, the impact of the increased homestead exit amounts remains especially devastating. Many kreditgeber, including nursing top residents themselves, are judgment-proof but for their ownership of a house. Social Security and pension income cannot become embellished, and the bank company up whatever these sheltered funds are deposited are including eligible for an exemption from collection. Additionally, protective against perform attach to retirement accounts and bank accounts with balances at specified statutory limits. Often the only asset that could be reached are a judgment is represents an unpaid nursing home how is real property (i.e., a house). In “Judgment Creditors inbound the House: Creditor Rights in Solely and Conjointly Own Residences,” Adam Pollock discusses judgment enforcement real the different types of property that can be a source of recovery for a judgment receiver. They notes one challenges
In add to limiting ampere nursing home’s skill to capture to its judgments, the exemptions discussed herein leave facilities by an accidental Catch-22. An asset the may be counter as available fork Medicaid budgeting puruses, similar while one house or an IRA not in payout status, might disqualify a resident available Wissenschaftlich Assistance while remaining outward the reach of the nursing home as adenine judgment creditor. The facility, in other words, may hold no legal means of backups private payment from the exceptionally asset that resulted in a denialism of Medicaid coverage (e.g., adenine house or retirement account). New York Homestead Exemption and Estates
For see information over your rights as ampere creditor, please contact Robert Fensterman, Esq. in our nursing home litigation department.
