Long Island Bankruptcy Attorney

Bankruptcy Property Exemptions - How They'll Affect Your Case

When you file for bankruptcy there are several considerations that will be taken into account, including your level of income as well as the value of total assets owned by the person filing. When approved for a Chapter 7 or Chapter 13 bankruptcy, certain assets that are not exempt will be liquidated and sold in order to pay back as much of the debts as possible. Asset liquidation is the process through which the court will liquidate non-exempt assets to pay back as much of your debt as possible before consolidating or discharging unsecured debts.

Certain exemptions, however, can protect properties such as your home, vehicle and personal property from liquidation. Following the liquidation process, the debts owed will be consolidated or discharged depending upon the type of bankruptcy filed. Only certain property will be exempt however, making it very important to understand how the bankruptcy process will affect your property and assets. A Long Island bankruptcy lawyer from our firm at Scupp & Berman, LLP can assist you with your case and keep you informed about how your case will proceed.

Recent Changes to Bankruptcy Exemptions

In previous bankruptcy cases, many average bankruptcy filers were unable or unwilling to file for bankruptcy in New York due to the higher value of their homes, or were unable to retain their home, depending upon their income and many other factors. Recent changes to the bankruptcy exemption laws however, have increased the amount of exemptions available to individual and jointly filing persons. As of December 23, 2010 a new law was passed amending the Homestead Exemptions, which provides exemptions for individuals or couples jointly filing when filing for bankruptcy.

Thirty days after going into effect, the new law changed several aspects including large increases to the value of properties that can be retained during and following the completion of the bankruptcy and the asset liquidation process. For example, the exempt amount of real estate and home value in many counties throughout New York increased from $50,000 per person filing to $75,000. Areas such as downstate New York including Kings, Queens and the Bronx increased to $150,000 for property, while Albany, Columbia, Orange and other counties have a $125,000 exemption for homes.

Other exemptions were amended as well as the addition of new categories. For motor vehicles, the new exemption was raised to $4,000 from the previous $2,400. Vehicles equipped for handicapped access have an exemption of up to $10,000. Additional exemption increases include personal belongings such as jewelry, a watch, art and a wedding ring up to $1,000 in total value, trade tools exempt for up to $3,000 and household items such as clothing for up to $10,000.

Bankruptcy Attorney Serving Suffolk and Nassau Counties

When your finances are in a state where you are simply unable to pay back your debts it is important to have legal guidance to ensure your case is handled correctly. Filing for bankruptcy is a serious matter that vitally needs experienced legal aid. At the Law Offices of Scupp & Berman we assist clients who are in need of aid for their legal bankruptcy matter. We can examine your finances and help formulate a plan to file for bankruptcy if you are eligible or search to find another debt relief option.

Do you have questions about what is exempt during the bankruptcy process? Contact a Long Island bankruptcy lawyer from our firm to learn about the laws that will pertain to your case.