Legal Question in Bankruptcy in New York

Re: primary residence.

Keep an eye on the newspapers for updates on the federal legislation that is intended to help debtors keep their primary residences. Note, though, that this legislation does NOT apply across the board; its application is very individualized. Also note that it is often possible, with good planning, to protect a primary residence, with or without the new legislation.

Judges will not step in to modify a contract except in very, very exceptional circumstances which rarely, if ever, exist with mortgage contracts. Judges will prevent a creditor from foreclosing if Debtor has a good, doable plan to make modified payments and catch up on the mortgage. Debtor must still pay the mortgage if Debtor intends to keep the home, even under the new legislation.

If you have not yet hired an attorney to help you through a tough time, you need to do so. Hire someone who is geographically close to you. You can get a referral from the New York State Bar Association (www.nysba.org) or from your county's bar association.

Good luck.

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.