Keeping Property in Bankruptcy
Under New York state law, each person filing for bankruptcy can keep $165,000 in equity in a home over the amount of mortgages or other liens. If there is more equity in your home than the allowed amount, and you file Chapter 7 bankruptcy the trustee will require you to pay him the difference, or he or she will sell your home. If you file Chapter 13 bankruptcy, you can pay the equity to the trustee, for distribution to creditors, over five years.
- If you don’t own a home, you can keep $5,525 in cash.
- You are entitled to equity in one motor vehicle of $2,400. You can also keep a leased vehicle if you continue to make lease payments.
- You can keep the first $7,500 you would otherwise receive from a personal case. If we use the federal exemption scheme, we can protect about $23,675 from a personal injury case.
- You can keep your ordinary household goods and clothing.
- Your retirement plan is exempt.
- Your life insurance is exempt, with certain exceptions.
- One watch worth $35 is exempt.
- A cemetery plot is exempt.
- Tools are exempt up to $600.
- You can also keep a leased vehicle if you continue to make lease payments.
Social Security benefits are exempt, as well as workers’ compensation, and disability insurance and unemployment insurance.
Money in Uniform Gifts to Minors Act children’s savings accounts with the child’s Social Security number that was not placed in the account by the parent before the parent’s bankruptcy is not property of the bankruptcy estate.
Staten Island Attorneys Helping You Retain Your Property In Bankruptcy
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.