If you are thinking about filing bankruptcy and asking yourself “can I keep my home if I file bankruptcy” then you have come to the right place. First, it is time to debunk the myth that if you file bankruptcy you will lose your home. There are different exemptions that need to be looked at to determine if you will lose your home if you file bankruptcy.
First, in New York, the homestead exemption is $170,000. This means that you can have up to $170,000 dollars of equity and file a Chapter 7 Bankruptcy and keep your home. Keep in mind, however, if you do use your homestead exemption then you can’t have any money in any bank account because there is no wildcard exemption that can be used.
So, what is equity? Equity is determined by the amount you owe vs what your home is worth. For example, let say you have a house worth $300,000 and you owe $200,000 this would mean you would only have $100,000 of equity. This, if you wanted to file bankruptcy in New York you would qualify because your under the $170,000 homestead exemption.
Now let’s look at another example. Let say you and your husband are on the deed to your home. Your home is worth $400,000 and you owe $100,000. This means that your house now has $300,000 worth of equity. Because the homestead exemption is $170,000 you are over however, in this scenario since you and your husband are on the deed you would each be able to exempt $170,000 therefore, you would have enough to exempt and still be able to file a chapter 7 bankruptcy.
Many times people wonder how they can find out what their house is worth. Looking your house up on Zillow or realtor.com may be a way to start. However, the best thing to do is to call a realtor up and ask for a Current Market Analysis or get your house appraised. A Current market analysis is usually free and will tell you how your house value compares with other houses that have sold in your area.
If you are thinking about filing bankruptcy in New York or more specifically Staten Island it is important to find and experienced bankruptcy lawyer who can help you. Karra L. Kingston is an experienced bankruptcy attorney in Staten Island New York. Call today for a free consultation to see if Bankruptcy is the right option for you.