Free Consultation
The office is open as per the NYS Covid-19 guidelines. We are now doing both in-person and telephone consultations. Please call the office at 718-855-6840 to schedule a time to speak with one of our experienced bankruptcy attorneys.

Can I keep my home if I file for bankruptcy in New York?

castle
The equity in this home may exceed the homestead exemption in New York.

Yes, you can keep your home if you file for bankruptcy in New York. But it’s not a given.  And depending on your circumstances, there are a few different ways to do it.

If you file for Chapter 7 bankruptcy Brooklyn NY, then you can keep your home as long as the remaining equity in your home (i.e., the amount that you have not yet paid back) does not exceed the homestead exemption for New York, which is $50,000 for an individual and $100,000 for a couple.  If the remaining equity exceeds the homestead exemption, then a trustee can sell your home to pay off creditors.

If you’re in this situation, then the other option for keeping your home is to file for Chapter 13 bankruptcy Brooklyn NY.  Chapter 13 bankruptcy means you work with your creditors, and with the supervision of the bankruptcy court, to create a repayment plan that usually takes 3 to 5 years.  The idea is that under a Chapter 13 repayment plan, you can reduce the amounts you owe to unsecured creditors (though not to your mortgage lender, who is a secured creditor).  With reduced payments, ideally, you would be able to make the payments on your mortgage and keep your home.

The non-bankruptcy alternative for trying to keep your home is loan modification and its cousin foreclosure mediation.   Whether you can negotiate a loan modification with your mortgage lender depends on your circumstances as well as on your mortgage lender.  There is some hope that Congress will put increased pressure on banks and other mortgage lenders to encourage them to enter into loan modifications with homeowners rather than move forward with foreclosure.  But waiting around for Congress to act may not be an option for you.

If you’re worried about losing your home to bankruptcy in New York, you don’t have to make this decision on your own.  The best first step is to meet with a good bankruptcy attorney Brooklyn NY who has experience and whom you trust to steer you in the right direction.

Please feel free to contact me for a free initial consultation.  I’ll answer all of your questions, figure out the best strategy to help you move forward.  The key, as always, is preparation and planning.

Rosenberg, Musso & Weiner, L.L.P
26 Court St # 2211
Brooklyn, NY 11242, USA
718-855-6840
http://nybankruptcy.net/

Recent Posts

Seven Tips for Paying Down Credit Card Debt and Raising Credit Scores

File under non-bankruptcy options: What are some ways to pay down those credit card debts, stay out of New York bankruptcy, and possibly raise your credit score? Here are some answers: (1)  Obtain your credit report. By federal law, you’re entitled to up to three free credit reports from the three credit reporting bureaus for

Read More »

What Are the Benefits of a 100 Percent Chapter 13 Repayment Plan?

One might think that the answer to that question is “nothing,” but that’s not true. It is sometimes worthwhile for debtors to file chapter 13 New York bankruptcy intending to pay their creditors in full even if the discharge isn’t really necessary—a filing referred to as a 100 percent repayment plan. Obviously it doesn’t happen

Read More »

Chapter 13 ‘Step Plans’ Can Help Debtors Accommodate Life Events

Debtors considering chapter 13 New York bankruptcy sometimes wonder how to craft their repayment plans when they anticipate significant events that are nearly certain to reduce or increase their incomes. For example, sometimes debtors know that a pregnant spouse will not be working for the beginning portion of the repayment plan but will be able

Read More »

Chapter 13 ‘Step Plans’ Can Help Debtors Accommodate Life Events

Debtors considering chapter 13 New York bankruptcy sometimes wonder how to craft their repayment plans when they anticipate significant events that are nearly certain to reduce or increase their incomes. For example, sometimes debtors know that a pregnant spouse will not be working for the beginning portion of the repayment plan but will be able

Read More »

Chapter 13 ‘Step Plans’ Can Help Debtors Accommodate Life Events

Debtors considering chapter 13 New York bankruptcy sometimes wonder how to craft their repayment plans when they anticipate significant events that are nearly certain to reduce or increase their incomes. For example, sometimes debtors know that a pregnant spouse will not be working for the beginning portion of the repayment plan but will be able

Read More »

Chapter 13 ‘Step Plans’ Can Help Debtors Accommodate Life Events

Debtors considering chapter 13 New York bankruptcy sometimes wonder how to craft their repayment plans when they anticipate significant events that are nearly certain to reduce or increase their incomes. For example, sometimes debtors know that a pregnant spouse will not be working for the beginning portion of the repayment plan but will be able

Read More »
Scroll to Top