When you take out a loan on your property as collateral to ensure your creditor will be paid back, you have a secured debt. Secured debt gives the creditor an interest in the piece of property. For example, a mortgage loan or car loan is an example of a secured debt. When you go to the dealership to take out a loan on a vehicle, they give you the vehicle as long as you pay off the loan.
New York Bankruptcy exemptions protect the equity in your assets. Equity is the value of your property you own after any liens. Property that is exempt cannot be used to pay back your debts. Any property that is not exempt, the Trustee will take to pay back your creditors. Therefore, you are allowed to keep all exempt property. In a Chapter 7 New York bankruptcy case, the Chapter 7 trustee does not want property that is covered by an exemption.
If you believe that your property is exempt, this does not mean that you can leave it out of your bankruptcy petition. All debts and assets must be included in your chapter 7 bankruptcy petition. The only way that your property can be exempt is by claiming the exemption on the property on your bankruptcy petition. If you fail to list your property or claim the wrong exemption, then your property is not exempt and will not protected from the Chapter 7 trustee.
If you are thinking about filing a Chapter 7 Bankruptcy, then you have come to the right place. Many people often wonder if they can file for bankruptcy even though they have property. In bankruptcy terms any property you own, is called an “asset”. An Asset is anything you own that has value that the …
What documents or forms do I need to file bankruptcy. A New York bankruptcy lawyer can help you file for bankruptcy