Legal Question in Bankruptcy in New York
Chapter 7 Bankruptcy and Real Property retention.
My inquiry is on behalf of my mother, who is 75. She ownes her home, but has acquired too much credit card debt(recently, home repairs-roof repair, plumbing, etc. were charged) to live comfortably on her retirement and Soc. Sec. Her credit is good/excellent and she would like to keep her home. If she files bankruptcy, can she keep her house?
2 Answers from Attorneys
Re: Chapter 7 Bankruptcy and Real Property retention.
In NY, if she has more than $10K in equity in the house she will have to sell it. Have you considered a reverse mortgage? If she has enough equity, it will pay off credit cards and/or give her an extra monthly income. This is not for everyone so do the research (on-line). Also, for the future, she should consider putting the house in a revocable trust (a.k.a. living trust, intervivios trust)which will keep it out of the hands of debt collectors, nursing home expenses, etc. and preserve it for her heirs. You can research this on line as well.
Re: Chapter 7 Bankruptcy and Real Property retention.
That depends on the amount of equity in the home, the value of all her other assets, and the exemptions laws of whatever State she resides in.
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