Legal Question in Bankruptcy in New York

Hello-

I have a question regarding chapter 7 bankruptcy (NY State).If I were to consider a ch.7 filing in a situation where I have an asset (a brokerage account)with more then the total debt owed-is there any way to avoid having that acct.liquidated prior to the debts being discharged?I also have a 401k which my understanding is exempt,and was recently started through my employer.

I have other alternatives to bankruptcy,but I'm hoping not to have to sacrifice a large portion of the brokerage acct.Also-can creditors take more then I owe for expenses,etc...?

Any advice would help.

Thank You.


Asked on 3/20/10, 5:57 pm

1 Answer from Attorneys
Michael Fakhoury Michael Fakhoury PC

In a Chapter 7 Petition in Bankruptcy - pursuant to NYS exemptions - you are allowed to exempt $2,500 per debtor (joint debtors get $5,000). Your brokerage account is not exempt beyond this. If you were to file a Ch. 7 Petition, the trustee can, and most likely will, take over ownership of the stocks or bonds you own and sell them and pay off creditors.

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Answered on 3/26/10, 5:04 am


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