Legal Question in Bankruptcy in New York

Re: bankruptcy

Of course a homeowner can file for bankruptcy protection, and in many cases (not all), the house will stay safely with the homeowner. If you have more equity in your home than the amount of your exemption (i.e., you own your home outright, or you owe $100,000 on a $350,000 home), then you have to look carefully at how you file your petition, since the investment you have in your home is greater than is your exemption. However, even in this circumstance, it is possible to file for bankruptcy protection and still keep the home; it just has to be done right.

Bankruptcy, btw, changed dramatically for the worse for debtors in 2005 when the Bankruptcy Abuse Prevention Act was enacted and became the law of the land. This once relatively straightforward proceeding has become littered with landmines for the unwary. Don't try to navigate this minefield alone; make sure you have an attorney representing you in this process. Find someone local to you; your county bar association or the NYS Bar Association (www.nysba.org) are good sources of referrals.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

Re: bankruptcy

A homeowner can file for bankruptcy. each individual has $50,000 as exempt property in a house. husband and wife have $100,000. This is above what is owed on the house - it is what is called equity.

Why would you want to sell your house to pay off a debt which is dischargeable in bankruptcy, and still keep the house.

If you would like to contact us, please feel free to do so. My son Matthew concentrates in bankruptcy and saving houses.