NY CPLR § 5205 (2021)
2021 New York Laws CVP - Civil Practice Law and Rules Article 52 - Enforcement of Money Judgments 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.