Legal Question in Bankruptcy in New York

Re: filing for bankruptcy after seling property

If you are considering filing for bankruptcy, you should consult with a bankruptcy attorney prior to selling or disposing of any assets. Debtors are permitted exemptions in certain types of property in bankruptcy. For instance, a debtor has a $50,000 exemption in his or her principal residence. If the home is sold, you may wind up with cash proceeds that cannot be exempted.

Also, selling property for less than fair value can be considered a fraudulent transfer, which can be voided by a bankruptcy trustee for up to six years after the transfer.

Please contact my office directly if you would like to discuss your situation further. You may also visit my website at amdlaw.com for more information.