If you are planning to file for Chapter 7 bankruptcy in New York, then you willÂ have to determine whether you will use the exemptions within the state or the federal bankruptcy exemptions. Since exemptions allow you only to keep some types of property when you file for bankruptcy, you need to determine which one of these suits your case better.
The answer to this question relies on what type of property you will ultimately like to keep. In Chapter 7 bankruptcy, you can eliminate the majority of your debt. In exchange for these discharge measures, you may have to give up some of your property to a bankruptcy trustee. The money from this will be used to repay part of your creditor. You are allowed to keep some essential items of property, however, and even some nonessential items depending on your situation.
In New York, for example, the federal homestead exemption is $22,975, although the New York exemption falls somewhere between $75,000 and $150,000. New York’s exemption is also higher as it relates to a car, but the federal personal property exemption is higher. Make sure you consult with your New York bankruptcy attorney to learn more about this process so that you know what to expect and which is most appropriate for you to claim.
Knowing what you can and cannot keep in the bankruptcy process before you start is a good idea so that you can plan ahead properly. Talking with a New York bankruptcy attorney can inform you about your options and give you some idea of the best route for you. Determining the type of bankruptcy to file and the exemptions you should claim can allow you to get the relief you need and move on to a better future. Jayson Lutzky is a Bronx lawyer with over 30 years of experience. He handles bankruptcy cases and offers free in-person consultations. To learn more about bankruptcy in New York State, visit www.MyNewYorkCityLawyer.com and call 718-329-9500 to set up your free appointment with Mr. Lutzky.