Older chapter 7 New York bankruptcy debtors almost always ask if cash from their Social Security incomes are exempt in bankruptcy. The general answer is yes, Social Security income is exempt in bankruptcy and won’t count towards means test totals. In other words, bankruptcy treats Social Security income as though it wasn’t there. The policy …
Social Security Is Exempt From Bankruptcy, Unless… Read More »
Sometimes debtors owe less than the value of their assets, raising the question of whether they can file a consumer Brooklyn bankruptcy case at all. It seems like the answer should be no because bankruptcy should only be for people in desperate circumstances, but in truth the answer is a resounding yes for a bunch …
Can I File Bankruptcy If I Have a Positive Net Worth? Read More »
Anyone who lived through or has read about the 1970s thinks of inflation as a secret thief that’s trying to cheat them out of their wages. Or something like that. The economics is much more complicated—and consumer-price inflation has been historically low for a while—but one place inflation can cause consumer debtors serious injury is …
New York Bankruptcy Exemptions Increased in 2018 Due to Inflation Read More »
Earlier this year I explained that “no-asset bankruptcy cases” are really “no non-exempt asset bankruptcy cases.” The idea is that unless they live in communes, all debtors actually do have assets. The question is really the extent to which they matter in a New York bankruptcy. So let’s clear up some misconceptions about “assets”: what …
For about a decade, New York bankruptcy debtors have been able to choose which set of exemptions to use to protect their assets, federal or state. For most debtors, notably those who aren’t homeowners, the federal exemptions are the best option because they provide a larger cash exemption. The state exemptions, by contrast, are better …
Most New York bankruptcy debtors own all their assets in New York State, though it’s probably more common for them than others to own assets in nearby jurisdictions. (How frequently do people open bank accounts in New York but then move to New Jersey?) Even more commonly, many older debtors own property in New York …
What Happens to a Debtor’s Property Located in Another State? Read More »
New York bankruptcy is full of jargon as one might expect, so debtors might be tripped up when they hear some of its terminology that doesn’t always mean what it sounds like. Take for example “no-asset bankruptcy” or “no-asset case.” This term sounds like situations in which debtors have no property at all to their …
Home values can rise quickly, and while most homeowners like that just fine, it’s usually not a good thing for New York bankruptcy debtors, particularly those with underwater junior mortgages on their primary residences. The consequences can affect consumer debtors in all chapters, and it they can eliminate the advantage to filing in chapter 13 …
Rising Home Values Don’t Help Bankruptcy Debtors Read More »
One of the trickier situations in New York bankruptcy is when a debtor co-owns an account with another person. It’s also a common situation: Debtors frequently own things with spouses, children, and even elderly relatives. It’s not so much of an issue when married couples file bankruptcy together—the account is indisputably an asset to the …
What Happens to a Joint Bank Account in Bankruptcy? Read More »
In recent weeks, you may have heard of the bursting Bitcoin bubble and the faltering stock market. These types of events are naturally associated with recessions, job losses, and people filing bankruptcy. The sudden turn in markets isn’t nearly so ominous, but there are some things debtors should know about financial assets in New York …
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