In bankruptcy, a homestead exemption protects equity in your home. Here, you'll find specific information about the homestead exemption in New York.Exemption applications must be filed with your local assessor's office. See our Municipal Profiles for your local assessor's mailing address. You can get information about your property tax benefits, including: Application status, Current benefit amounts, Proposed benefit for the upcoming tax year. A homestead exemption is a legal provision that shields a home from some creditors following the death of a homeowner's spouse or the declaration of bankruptcy. This guide will delve into homestead exemptions, what they are, who is eligible, how to apply, which states have them, and more. President Abraham Lincoln signed the Homestead Act on May 20, 1862. This can provide asset protection from creditors for at least some of house's value. The homestead tax exemption applies to property taxes.