N.Y. CPLR § 5205

NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only CPLR § 5205 Personal property exempt from application to the satisfactionof money judgments § 5205. Personal property exempt from application to the satisfactionof money judgments. (a) Exemption for personal property. The followingpersonal property when owned by any person is exempt from application tothe satisfaction of a money judgment except where the judgment is forthe purchase price of the exempt property or was recovered by adomestic, laboring person or mechanic for work performed by that personin such capacity:1. all stoves and home heating equipment kept for use in the judgmentdebtor's dwelling house and necessary fuel therefor for one hundredtwenty days; one sewing machine with its appurtenances;2. religious texts, family pictures and portraits, and school booksused by the judgment debtor or in the family; and other books, notexceeding five hundred dollars in value, kept and used as part of thefamily or judgment debtor's library;3. a seat or pew occupied by the judgment debtor or the family in aplace of public worship;4. domestic animals with the necessary food for those animals for onehundred twenty days, provided that the total value of such animals andfood does not exceed one thousand dollars; all necessary food actuallyprovided for the use of the judgment debtor or his family for onehundred twenty days;5. all wearing apparel, household furniture, one mechanical, gas orelectric refrigerator, one radio receiver, one television set, onecomputer and associated equipment, one cellphone, crockery, tablewareand 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 thousanddollars in value;7. tools of trade, necessary working tools and implements, includingthose of ily;all prescribed health aids;6. a wedding ring; a watch, jewelry and art not exceeding one thousanddollars in value;7. tools of trade, necessary working tools and implements, includingthose 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 twentydays, provided, however, that the articles specified in this paragraphare necessary to the carrying on of the judgment debtor's profession orcalling;8. one motor vehicle not exceeding four thousand dollars in valueabove liens and encumbrances of the debtor; if such vehicle has beenequipped for use by a disabled debtor, then ten thousand dollars invalue above liens and encumbrances of the debtor; provided, however,that this exemption for one motor vehicle shall not apply if the debtenforced is for child support, spousal support, maintenance, alimony orequitable distribution, or if the state of New York or any of itsagencies or any municipal corporation is the judgment creditor; and9. if no homestead exemption is claimed, then one thousand dollars inpersonal property, bank account or cash.(b) Exemption of cause of action and damages for taking or injuringexempt personal property. A cause of action, to recover damages fortaking or injuring personal property exempt from application to thesatisfaction of a money judgment, is exempt from application to thesatisfaction of a money judgment. A money judgment and its proceedsarising out of such a cause of action is exempt, for one year after thecollection thereof, from application to the satisfaction of a moneyjudgment.(c) Trust exemption. 1. Except as provided in paragraphs four and fiveof this subdivision, all property while held in trust for a judgmentdebtor, where the trust has been created by, or the fund so held intrust has proceeded from, a person agraphs four and fiveof this subdivision, all property while held in trust for a judgmentdebtor, where the trust has been created by, or the fund so held intrust has proceeded from, a person other than the judgment debtor, isexempt 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 establishedas part of, and all payments from, either any trust or plan, which isqualified as an individual retirement account under section four hundredeight or section four hundred eight A of the United States InternalRevenue Code of 1986, as amended, a Keogh (HR-10), retirement or otherplan established by a corporation, which is qualified under section 401of the United States Internal Revenue Code of 1986, as amended, orcreated as a result of rollovers from such plans pursuant to sections402 (a) (5), 403 --- NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only (a) (4), 408 (d) (3) or 408A of the Internal RevenueCode of 1986, as amended, or a plan that satisfies the requirements ofsection 457 of the Internal Revenue Code of 1986, as amended, shall beconsidered a trust which has been created by or which has proceeded froma person other than the judgment debtor, even though such judgmentdebtor is (i) in the case of an individual retirement account plan, anindividual who is the settlor of and depositor to such account plan, or(ii) a self-employed individual, or (iii) a partner of the entitysponsoring the Keogh (HR-10) plan, or (iv) a shareholder of thecorporation sponsoring the retirement or other plan or (v) a participantin a section 457 plan.3. All trusts, custodial accounts, annuities, insurance contracts,monies, assets, or interests described in paragraph two of thissubdivision shall be conclusiv rticipantin a section 457 plan.3. All trusts, custodial accounts, annuities, insurance contracts,monies, assets, or interests described in paragraph two of thissubdivision shall be conclusively presumed to be spendthrift trustsunder this section and the common law of the state of New York for allpurposes, including, but not limited to, all cases arising under orrelated to a case arising under sections one hundred one to thirteenhundred thirty of title eleven of the United States Bankruptcy Code, asamended.4. This subdivision shall not impair any rights an individual hasunder a qualified domestic relations order as that term is defined insection 414(p) of the United States Internal Revenue Code of 1986, asamended or under any order of support, alimony or maintenance of anycourt of competent jurisdiction to enforce arrears/past due supportwhether or not such arrears/past due support have been reduced to amoney judgment.5. Additions to an asset described in paragraph two of thissubdivision shall not be exempt from application to the satisfaction ofa money judgment if (i) made after the date that is ninety days beforethe interposition of the claim on which such judgment was entered, or(ii) deemed to be voidable transactions under article ten of the debtorand creditor law.(d) Income exemptions. The following personal property is exempt fromapplication to the satisfaction of a money judgment, except such part asa court determines to be unnecessary for the reasonable requirements ofthe judgment debtor and his dependents:1. ninety per cent of the income or other payments from a trust theprincipal of which is exempt under subdivision (c); provided, however,that with respect to any income or payments made from trusts, custodialaccounts, annuities, insurance contracts, monies, assets or interestestablished as part of an individual retirement account plan or as partof a Keogh (HR-10), ents made from trusts, custodialaccounts, annuities, insurance contracts, monies, assets or interestestablished as part of an individual retirement account plan or as partof a Keogh (HR-10), retirement or other plan described in paragraph twoof subdivision (c) of this section, the exception in this subdivisionfor such part as a court determines to be unnecessary for the reasonablerequirements of the judgment debtor and his dependents shall not apply,and the ninety percent exclusion of this paragraph shall become a onehundred percent exclusion;2. ninety per cent of the earnings of the judgment debtor for hispersonal services rendered within sixty days before, and at any timeafter, an income execution is delivered to the sheriff or a motion ismade to secure the application of the judgment debtor's earnings to thesatisfaction of the judgment; and3. payments pursuant to an award in a matrimonial action, for thesupport of a wife, where the wife is the judgment debtor, or for thesupport of a child, where the child is the judgment debtor; where theaward was made by a court of the state, determination of the extent towhich it is unnecessary shall be made by that court.(e) Exemptions to members of armed forces. The pay and bounty of anon-commissioned officer, musician or private in the armed forces of theUnited States or the state of New York; a land warrant, pension or otherreward granted by the United States, or by a state, for services in thearmed forces; a sword, horse, medal, emblem or device of any kindpresented as a testimonial for services rendered in the armed forces ofthe United States or a state; and the uniform, arms and equipments whichwere used by a person in the service, are exempt from application to thesatisfaction of a money judgment; provided, however, that the provisionsof this subdivision shall not apply to the satisfaction of any order ormoney judgment for the supp m application to thesatisfaction of a money judgment; provided, however, that the provisionsof this subdivision shall not apply to the satisfaction of any order ormoney judgment for the support of a person's child, spouse, or formerspouse.(f) Exemption for unpaid milk proceeds. Ninety per CPLR § 5205 Page 2 --- NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only cent of any moneyor debt due or to become due to the judgment debtor for the sale of milkproduced on a farm operated by him and delivered for his account to amilk dealer licensed pursuant to article twenty-one of the agricultureand markets law is exempt from application to the satisfaction of amoney judgment.(g) Security deposit exemption. Money deposited as security for therental of real property to be used as the residence of the judgmentdebtor or the judgment debtor's family; and money deposited as securitywith a gas, electric, water, steam, telegraph or telephone corporation,or a municipality rendering equivalent utility services, for services tojudgment debtor's residence or the residence of judgment debtor'sfamily, are exempt from application to the satisfaction of a moneyjudgment.(h) The following personal property is exempt from application to thesatisfaction of money judgment, except such part as a court determinesto be unnecessary for the reasonable requirements of the judgment debtorand his dependents:1. any and all medical and dental accessions to the human body and allpersonal property or equipment that is necessary or proper to maintainor assist in sustaining or maintaining one or more major life activitiesor is utilized to provide mobility for a person with a permanentdisability; and2. any guide dog, service dog or hearing dog, as those terms aredefined in sect ne or more major life activitiesor is utilized to provide mobility for a person with a permanentdisability; and2. any guide dog, service dog or hearing dog, as those terms aredefined in section one hundred eight of the agriculture and markets law,or any animal trained to aid or assist a person with a permanentdisability and actually being so used by such person, together with anyand all food or feed for any such dog or other animal.(i) Exemption for life insurance policies. The right of a judgmentdebtor to accelerate payment of part or all of the death benefit orspecial surrender value under a life insurance policy, as authorized byparagraph one of subsection (a) of section one thousand one hundredthirteen of the insurance law, or to enter into a viatical settlementpursuant to the provisions of article seventy-eight of the insurancelaw, is exempt from application to the satisfaction of a money judgment.(j) Exemption for New York state college choice tuition savingsprogram trust fund payment monies. Monies in an account created pursuantto article fourteen-A of the education law are exempt from applicationto the satisfaction of a money judgment as follows:1. one hundred percent of monies in an account established inconnection with a scholarship program established pursuant to sucharticle is exempt;2. one hundred percent of monies in an account is exempt where thejudgment debtor is the account owner and designated beneficiary of suchaccount and is a minor; and3. an amount not exceeding ten thousand dollars in an account, or inthe aggregate for more than one account, is exempt where the judgmentdebtor 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 inarticle fourteen-A of the education law.(k) Notwithstanding any other provision of law to the contrar account owner" and"designated beneficiary" shall have the meanings ascribed to them inarticle fourteen-A of the education law.(k) Notwithstanding any other provision of law to the contrary, wherethe judgment involves funds of a convicted person as defined inparagraph (c) of subdivision one of section six hundred thirty-two-a ofthe executive law, and all or a portion of such funds representcompensatory damages awarded by judgment to a convicted person in aseparate action, a judgment obtained pursuant to such section sixhundred thirty-two-a shall not be subject to execution or enforcementagainst the first ten percent of the portion of such funds thatrepresents compensatory damages in the convicted person's action;provided, however, that this exemption from execution or enforcementshall not apply to judgments obtained by a convicted person prior to theeffective date of the chapter of the laws of two thousand one whichadded this sentence or to any amendment to such judgment where suchamendment was obtained on or after the effective date of thissubdivision. For the purpose of determining the amount of a judgmentwhich is not subject to execution or enforcement pursuant to thissubdivision: (i) the court shall deduct attorney's fees from thatportion of the judgment that represents compensatory damages andmultiply the remainder of compensatory damages by ten percent; and (ii)when the judgment includes compensatory and punitive damages, attorney'sfees shall be pro rated among compensatory and punitive damages in thesame proportion that all attorney's fees bear to all damages recovered.(l) Exemption of banking institution accounts into which statutorilyexempt payments are made electronically or by direct deposit. CPLR § 5205 Page 3 --- NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only 1. Ifdirect deposit or electronic pay by direct deposit. CPLR § 5205 Page 3 --- NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only 1. Ifdirect deposit or electronic payments reasonably identifiable asstatutorily exempt payments were made to the judgment debtor's accountin any banking institution during the forty-five day period precedingthe date a restraining notice was served on the banking institution oran execution was served upon the banking institution by a marshal orsheriff, then two thousand five hundred dollars in the judgment debtor'saccount is exempt from application to the satisfaction of a moneyjudgment. Nothing in this subdivision shall be construed to limit acreditor's rights under 42 U.S.C. § 659 or 38 U.S.C. § 5301 or toenforce a child support, spousal support, alimony or maintenanceobligation. Nothing in this subdivision shall alter the exempt status offunds that are protected from execution, levy, attachment, garnishmentor other legal process, pursuant to this section or under any otherprovision of state or federal law, or shall affect the right of ajudgment debtor to claim such exemption.2. For purposes of this article, "statutorily exempt payments" meansany personal property exempt from application to the satisfaction of amoney judgment under any provision of state or federal law. Such termshall include, but not be limited to, payments from any of the followingsources: social security, including retirement, survivors' anddisability benefits, supplemental security income or child supportpayments; 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 eachthree-year interval ending on April first thereafter, the dollar amountof the exempti ng benefits; and emergency relief funds.3. (i) Beginning on April first, two thousand twelve, and at eachthree-year interval ending on April first thereafter, the dollar amountof the exemption provided in this section, subdivisions (e) and (h) ofsection fifty-two hundred twenty-two, subdivision (a) of sectionfifty-two hundred thirty and subdivision (e) of section fifty-twohundred thirty-two of this article in effect immediately before thatdate shall be adjusted as provided in subparagraph (ii) of thisparagraph.(ii) The superintendent of financial services shall determine theamount of the adjustment based on the change in the Consumer Price Indexfor All Urban Consumers, New York-Northern New Jersey-Long Island,NY-NJ-CT-PA, published by the U.S. Department of Labor, Bureau of LaborStatistics, for the most recent three-year period ending on Decemberthirty-first preceding the adjustment, with each adjusted amount roundedto the nearest twenty-five dollars.(iii) Beginning on April first, two thousand twelve, and at eachthree-year interval ending on April first thereafter, the superintendentof financial services shall publish the current dollar amount of theexemption provided in this section, subdivisions (e) and (h) of sectionfifty-two hundred twenty-two, subdivision (a) of section fifty-twohundred thirty and subdivision (e) of section fifty-two hundredthirty-two of this chapter, together with the date of the next scheduledadjustment. The publication shall be substantially in the form setbelow:CURRENT DOLLAR AMOUNT OF EXEMPTION FROM ENFORCEMENT OF JUDGMENT UNDERNEW 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 fromenforcement 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 amou ent dollar amount of exemption fromenforcement 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 tocases commenced before April 1, (year). The next adjustment is scheduledfor April 1, (year).(iv) Adjustments made under subparagraph (i) of this paragraph shallnot apply with respect to restraining notices served or executionseffected before the date of the adjustment.(m) Nothing in subdivision (l) of this section limits the judgmentdebtor's exemption rights in this section or under any other law.(n) Notwithstanding any other provision of law to the contrary, theterm "banking institution" when used in this article CPLR § 5205 Page 4 --- NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only shall mean andinclude all banks, trust companies, savings banks, savings and loanassociations, credit unions, foreign banking corporations incorporated,chartered, organized or licensed under the laws of this state, foreignbanking corporations maintaining a branch in this state, and nationallychartered banks.(o) The provisions of subdivisions (l), (m) and (n) of this section donot apply when the state of New York, or any of its agencies ormunicipal corporations is the judgment creditor, or if the debt enforcedis for child support, spousal support, maintenance or alimony, providedthat the restraining notice or execution contains a legend at the topthereof, above the caption, in sixteen point bold type with thefollowing language: "The judgment creditor is the state of New York, orany of its agencies or municipal corporations, AND/OR the debt enforcedis for child support, spousal support, maintenance or alimony.".(p) Exemption for emergency relief funds. Any payments to individuals,includin or municipal corporations, AND/OR the debt enforcedis 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 anyadvances of any tax credits, under the federal Families FirstCoronavirus Response Act (FFCRA), Coronavirus Aid, Relief, and EconomicSecurity Act of 2020 (CARES Act), Consolidated Appropriations Act of2021, and American Rescue Plan Act of 2021 (ARPA) are exempt fromapplication to the satisfaction of a money judgment. This exemptionshall not apply (i) if the debt enforced is for child support, spousalsupport, maintenance, alimony, a distributive award in a matrimonialaction, or restitution in a family offense proceeding, or (ii) to thatportion of any money judgment awarded on a claim that the emergencyrelief funds referenced herein are the rightful property of the judgmentcreditor. 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