If you choose to file for Chapter 7 bankruptcy in New York, then you can keep all the property outlined as exempt under the laws. These are items of property that are exempt from creditor claims. In order to determine whether your property is exempt or not, you need to keep several things in mind. The value of the property is not calculated as the amount you paid for it but rather what that amount is now. This can be very important for considering cars and furniture, which normally decrease in value over time. You also need to remember that you only consider your actual equity in any property. This means your exemptions will be counted against the full value minus any money you owe on liens or a mortgage, for example.
Exemptions do not make a difference to the right of the car loan creditor or the mortgage holder when it comes to bankruptcy, however, if you are behind on the payments. If you choose to file a Chapter 13 bankruptcy, then you can keep all of the property if your plan meets the requirements for bankruptcy law.
In the majority of cases you will need to pay your liens or mortgages as you would if you had not ever filed bankruptcy. Contact an experienced New York bankruptcy attorney to learn more about the specific property you may be entitled to keep and what you should do now if you are thinking about filing for bankruptcy in the near future.Â Get your questions answered sooner rather than later so you feel comfortable with the process instead of confused or frustrated. Jayson Lutzky is a Bronx, NY bankruptcy lawyer who offers free in-person consultations. He has represented thousands of highly satisfied clients over the past 32 years. Â Call 718-514-6619 to arrange your consultation or visit www.MyNewYorkCityLawyer.com to learn more about the Bankruptcy Code.