Corash & Hollender, P.C.

Bankruptcy Risk - limit on homestead exemption in New York City

Unable to work due to a severe medical condition, she had accumulated $30,000 in credit card debt. Still not working years later, she just cannot make the minimum monthly payments totaling about $800 per month. 

What type of people need to file for bankruptcy?

Her good friend, a former bankruptcy client, brought her in for a free consultation.

I quickly saw the risk that she did not recognize. As the sole owner of the house, which she had inherited from her parents, she had no mortgage  (good because it kept her living costs down; but bad, because her New York homestead exemption, was limited to $165,500, and the house was worth over $500,000).  In other words, if she filed a chapter 7 bankruptcy petition, her bankruptcy trustee would sell the house to pay her credit cards! 

What property can I keep?

After she overcomes her initial shock, I counseled her on managing her life without the need for bankruptcy and showed her how her current income would be enough to pay her current expenses.

I also reminded her how lucky she was that she had a nice place to live; that she did not have to sell her house; that she had enough money to make ends meet; and the reasons she should not be worried about the bill collectors.

No Comments

Leave a comment
Comment Information
Arrange a Free Consultation Now ยป

Free Initial Consultation - Credit Cards Accepted

The secret to our success is that we care about our clients. Contact us online or call our law firm at 718-442-4424.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Visit Our Office / Connect With Us / Review Our Firm

1200 South Avenue, Suite 201
The Corporate Park Of Staten Island
Staten Island, NY 10314

Phone: 718-442-4424
Fax: 718-273-4847
Map & Directions

7317 13th Avenue
Brooklyn, New York 11228

Phone: 718-442-4424
Fax: 718-273-4847
Map & Directions

Leave a review

Review Us
Back to Top