Many New York bankruptcies involve debtors’ houses. A house’s value in bankruptcy can play a crucial role in a number of ways, notably homestead exemptions, discharging underwater junior mortgages, and even choosing between chapter 7 or 13. It’s a big deal.
But how do you know how much the house is worth? And just as . . . → Read More: Just How Much Is That House Worth in Bankruptcy?
It might be farcical, but sometimes bankruptcy trustees will file lawsuits against universities in consumer bankruptcy cases. If parents pay for their children’s college tuition with money that could go to creditors, then the trustees might have a case. To combat this possibility, New York’s own Representative Chris Collins offered a bill in Congress that . . . → Read More: When the Trustee Thinks College Tuition Is a Fraudulent Transfer
Many lawyers enjoy this time of year not for the nice weather like they should be but for the the U.S. Supreme Court rulings. I recently discussed one case in which the Court held that a chapter 13 debtor could not appeal a denial of confirmation of his or her repayment plan. However, there’s one . . . → Read More: FDCPA Claims Against Creditors in Bankruptcy Not Allowed in New York
In New York bankruptcy, debtor homeowners can benefit from a fairly generous homestead exemption. Real property located in the counties in New York City, Long Island, as well as Rockland, Westchester, and Putnam counties, get a $150,000 exemption. The exemption in Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster counties is $125,000. Finally, homeowners elsewhere in . . . → Read More: Moving to New York for Its Homestead Exemption Is Not a Good Idea
A few months back I noted that the U.S. Supreme Court was going to hear a case on whether the denial of a chapter 13 repayment plan could be appealed. The justices of the Court may not see eye to eye on many issues, but in this case they unanimously held that the answer is . . . → Read More: Supreme Court Holds That Denied Chapter 13 Plans Cannot Be Appealed
In New York bankruptcy it’s possible, but not common, for debtors to unsuccessfully surrender their homes or other real estate. They receive their discharges, exit bankruptcy, and find that they still own the property with a mortgage lien still attached to it. How can something so bizarre happen?
Answer: Just because you say you want . . . → Read More: Surrendering Real Estate Might Not Work in Bankruptcy
Lacking health insurance is almost always a bad idea. People who are injured can end up borrowing large amounts of money that they can’t manage, but there’s one situation in New York bankruptcy where lacking health insurance might not be an impediment: Debtors who don’t have health insurance might still be able to deduct it . . . → Read More: Stay in Chapter 7 by Deducting Your Health Insurance
When the topic of the underwater house comes up in New York bankruptcy, a few options are regularly (and rightly) listed: short-sales, offering the deed in lieu of foreclosure, staying and paying, foreclosure (the worst option), and bankruptcy. One that doesn’t come up often is moving out and renting the residence. It’s an intriguing idea . . . → Read More: The Risks and Benefits of Renting Out the Underwater Home
Credit scores were primarily invented to help lenders gauge debtors’ creditworthiness with a handy, neutral (hopefully) benchmark rather than relying on references or worse, insider dealings. It didn’t take long, however, for other parties to start using them, like landlords seeking reassurance that their tenants would pay rent on time. With employers, however, it’s different. . . . → Read More: New York City to Ban Credit Checks for Job Candidates
Given that debtors in chapter 13 New York bankruptcy can keep their assets, it’s unsurprising that one would think that exemptions play no role in such cases. In chapter 7, it’s clear: The exemptions reduce the size of the bankruptcy estate to ensure that debtors can keep a reasonable amount of their property. But exemptions . . . → Read More: Exemptions and Chapter 13