Bill S1965-2011

Increases the value of homesteads which are to be exempt from civil judgments

Increases the value of homesteads which are exempt from civil judgements from fifty thousand to two hundred fifty thousand dollars.

Details

Actions

  • Jan 4, 2012: REFERRED TO JUDICIARY
  • Mar 8, 2011: COMMITTEE DISCHARGED AND COMMITTED TO JUDICIARY
  • Jan 14, 2011: REFERRED TO CODES

Memo

BILL NUMBER:S1965

TITLE OF BILL: An act to amend the civil practice law and rules, in relation to increasing the value of homesteads which are to be exempt from civil judgments

PURPOSE: This bill would amend the Civil Practice Law and Rules, in relation-to increasing the value of the homestead exemption for civil judgments.

SUMMARY OF PROVISIONS: This bill would amend Section 5206 of the Civil Practice Law and Rules to increase the homestead exemption amount from civil judgments in New York State from $50,000 to $250,000.

JUSTIFICATION: The idea of the homestead exemption to civil judgments seems to have been that no civil judgment against any person should result in that person forfeiting his or her having a right to a place to live. To that end, Chapter 181 of the Laws of 1977 made the value of a person's homestead up to $10,000 exempt from civil judgments against that person.

Later on, Section 282 of the Debtor and Creditor Law extended this exemption to assessments of the value of a person's estate when Bankruptcy is declared. When laws mention specific dollar amounts, it is prudent to periodically review and update those amounts.

Current law sets the homestead exemptions at $50,000. That amount was set by Chapter 623 of the laws of 2005.

This bill proposes to increase the homestead exemption to $250,000, a much more realistic figure. The current amount, although only one year old, is not at all realistic in today's economy.

LEGISLATIVE HISTORY: 2009-10: S.2161/A.615 - Referred to Codes/Judiciary 2008-09: S.2480/A.8324 2006-07: S.6651

FISCAL IMPLICATIONS: None noted.

EFFECTIVE DATE: This bill shall take effect immediately and shall be deemed to have been in full force and effect on and after August 30, 2005.


Text

STATE OF NEW YORK ________________________________________________________________________ 1965 2011-2012 Regular Sessions IN SENATE January 14, 2011 ___________
Introduced by Sens. PARKER, DILAN, SAMPSON, SMITH -- read twice and ordered printed, and when printed to be committed to the Committee on Codes AN ACT to amend the civil practice law and rules, in relation to increasing the value of homesteads which are to be exempt from civil judgments THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivisions (a), (d) and (e) of section 5206 of the civil practice law and rules, as amended by chapter 568 of the laws of 2010, are amended to read as follows: (a) Exemption of homestead. Property of one of the following types, not exceeding [one] TWO hundred fifty thousand dollars for the counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred twenty-five thousand dollars for the counties of Dutchess, Albany, Columbia, Orange, Saratoga and Ulster; and seventy-five thousand dollars for the remaining counties of the state in value above liens and encumbrances, owned and occupied as a principal residence, is exempt from application to the satisfaction of a money judgment, unless the judgment was recovered wholly for the purchase price thereof: 1. a lot of land with a dwelling thereon, 2. shares of stock in a cooperative apartment corporation, 3. units of a condominium apartment, or 4. a mobile home. But no exempt homestead shall be exempt from taxation or from sale for non-payment of taxes or assessments. (d) Exemption of homestead exceeding [one] TWO hundred fifty thousand dollars in value for the counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred twenty-five thousand dollars for the counties of Dutchess, Albany,
Columbia, Orange, Saratoga and Ulster; and seventy-five thousand dollars for the remaining counties of the state. The exemption of a homestead is not void because the value of the property exceeds one hundred fifty thousand dollars for the counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred twenty-five thousand dollars for the counties of Dutchess, Albany, Columbia, Orange, Saratoga and Ulster; and seventy-five thousand dollars for the remaining counties of the state but the lien of a judgment attaches to the surplus. (e) Sale of homestead exceeding [one] TWO hundred fifty thousand dollars for the counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred twenty- five thousand dollars for the counties of Dutchess, Albany, Columbia, Orange, Saratoga and Ulster; and seventy-five thousand dollars for the remaining counties of the state in value. A judgment creditor may commence a special proceeding in the county in which the homestead is located against the judgment debtor for the sale, by a sheriff or receiver, of a homestead exceeding [one] TWO hundred fifty thousand dollars for the counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred twenty- five thousand dollars for the counties of Dutchess, Albany, Columbia, Orange, Saratoga and Ulster; and seventy-five thousand dollars for the remaining counties of the state in value. The court may direct that the notice of petition be served upon any other person. The court, if it directs such a sale, shall so marshal the proceeds of the sale that the right and interest of each person in the proceeds shall correspond as nearly as may be to his right and interest in the property sold. Money, not exceeding [one] TWO hundred fifty thousand dollars for the counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred twenty-five thousand dollars for the counties of Dutchess, Albany, Columbia, Orange, Saratoga and Ulster; and seventy-five thousand dollars for the remaining counties of the state, paid to a judgment debtor, as representing his interest in the proceeds, is exempt for one year after the payment, unless, before the expiration of the year, he acquires an exempt homestead, in which case, the exemption ceases with respect to so much of the money as was not expended for the purchase of that property; and the exemption of the property so acquired extends to every debt against which the property sold was exempt. Where the exemption of property sold as prescribed in this subdivision has been continued after the judgment debtor's death, or where he dies after the sale and before payment to him of his portion of the proceeds of the sale, the court may direct that portion of the proceeds which represents his interest be invested for the benefit of the person or persons entitled to the benefit of the exemption, or be otherwise disposed of as justice requires. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after August 30, 2005.

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