Legal Question in Bankruptcy in New York

I have a lot of debt and already in collections with alot of my cards; which were closed by the issuer, I thought about a debt settlement company, but I just can't see paying them thousands of dollars to settle on my behalf. So I'm thinking bankruptcy makes more sense, however, I have investment properties and am not sure of which type of bankruptcy to file that would protect me from losing any of my homes including my primary.


Asked on 7/08/10, 11:14 am

1 Answer from Attorneys
Andrew M. Doktofsky Andrew M. Doktofsky, P.C.

In New York, debtors are entitled to a $50,000 exemption for the equity in their primary residence. There is no exemption for investment properties. If there is equity in these properties, and you file a Chapter 7 bankruptcy, the bankruptcy trustee can sell the properties to pay your creditors. If you file a Chapter 13 bankruptcy, you retain all of your property. In Chapter 13, you pay back some of your debts through a Chapter 13 plan. How much you would have to pay is based on your income as well as the value of your non-exempt assets.

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Answered on 7/09/10, 2:44 pm


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