Legal Question in Bankruptcy in New York

Re: holding a real estete note

Once you file a bankruptcy all of your property becomes part of the �bankruptcy estate�. Upon filing bankruptcy the note becomes property of your bankruptcy estate (but, read below regarding �exemptions�). The �trustee� in your chapter 7 bankruptcy estate can sell the note.

However, the law allows you to keep certain property because the purpose of bankruptcy is to a give you a �fresh start�. The property you are allowed to keep is called �exempt� property or your �exemptions�. Exemptions are not automatic and must be claimed on the appropriate schedule filed with your bankruptcy petition. Whether or not an exemption can be claimed for the note depends on the specifics of your situation, including the value of the note and the nature and value of your other property and exemptions. You should consult a competent bankruptcy attorney for further information.

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