New York Bankruptcy Exemptions

Bankruptcy exemptions allow the individual’s who file bankruptcy a way to keep their property. Any property that is not exempt, becomes part of the bankruptcy estate. When an unexempt property becomes part of the bankruptcy estate, a New York Trustee can sell it to pay off the creditors.

Most people who file Chapter 7 bankruptcies don’t have many assets. In a New York Chapter 13 bankruptcy, individuals can keep the assets they own as long as they pay their creditors a portion of the unexempt equity in that asset. Bankruptcy exemptions are confusing which is why it is important to speak with a bankruptcy lawyer before filing a New York bankruptcy. Keep in mind, that once a Chapter 7 bankruptcy is filed individuals do not have a right to dismiss their case. This means the Trustee will either sell the unexempt prooperty you own or you will need to be able to convert your case to a Chapter 13 bankruptcy.

New York Exemptions

Individuals filing a Chapter 7 bankruptcy in New York are able to use both the state exemptions or the Federal exemptions. Choosing which exemption to use is vital if you have a home or other assets. The Federal exemption only allows you to exempt $25,150 of equity. Depending on where you reside in New York, your exemption amount will vary. For example, if you live in Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and, Putnam counties you can exempt up to $170,825 of equity in your home.

 Karra L. Kingston Esq. is a New York Bankruptcy lawyer that helps many individuals get out of debt. Call today to learn more at (973)-979-9078 or email us at karra@klkbankruptcylawyer.com