A while back we discussed what happens when a person inherits an underwater house. A similar situation is when a relative dies while in New York bankruptcy. This can be complicated for the heirs of the debtor who may inherit some of the debtor’s assets, if there are any. The outcome depends on what chapter …
What to Do When a Relative Dies in New York Bankruptcy Read More »
Many debtors who are considering filing New York bankruptcy are often concerned about past taxes that they owe the government. But which government? Very few people owe anything other than federal income taxes and payroll taxes (or self-employment taxes for those who aren’t payroll employees). Some people, though, owe money to the state government, which …
Some State Taxes Are Dischargeable in Bankruptcy Read More »
Most people who file chapter 7 bankruptcy in New York only intend to discharge credit card debt because mortgages and auto loans are secured by houses and cars, respectively, so debtors must continue payment on them to prevent foreclosure or repossession. Generally, though, a chapter 7 discharge applies to all unsecured debts, but that doesn’t …
What Debts Are Excluded From the Chapter 7 Discharge Order? Read More »
Following up on a post from a few weeks ago about bankruptcy income and tax income for purposes of the chapter 7 means test, a question that can arise is: What happens if your income is irregular instead of a steady paycheck? This is an important question because the means test compares debtors’ average earnings …
The recession that began in 2008 was very severe because it was caused by excessive borrowing by households. As people became unable to repay their mortgages, they defaulted, leaving many homeowners underwater in their mortgages. The obvious response was a wave of bankruptcy filings. The recovery after the recession has not been particularly good, so …
Many people aspire to homeownership, but if they have filed bankruptcy they often believe it’s an unreachable goal. This isn’t true. There are several other ways bankruptcy can help someone become a homeowner. (1) Bankruptcy can improve credit scores and other creditworthiness metrics. It’s avoiding bills and creditors that causes problems. In this sense, filing …
How Bankruptcy Can Lead the Way to Homeownership Read More »
Congress altered the bankruptcy code in 2005 to require debtors filing chapter 7 bankruptcy to demonstrate that their incomes are below the median family income for their state if their debts were primarily consumer debts. For single earners filing bankruptcy in New York, that figure will be $47,414 as of November 15. Debtors whose incomes …
New York may have better bankruptcy exemptions than most other states, but a New York Times article asks whether one property right is even an asset at all: rent-stabilized apartments. Here’s the background: New York City maintains a set of laws that protect apartment renters from rent price increases. One is “rent control,” which provides …
Is a New York City Rent-Stabilized Apartment an Asset in Bankruptcy? Read More »
Many people who file bankruptcy have neither the time nor the reason to wait. They might be facing foreclosure, debt collectors, wage garnishments, etc., so there isn’t much point in delaying their filings. For others, though, there can be compelling reasons to file bankruptcy in New York later rather than sooner. Here are a few. …
The last thing people who are considering filing bankruptcy in New York are probably interested in is filing two tax returns in one year, but it is not only possible but also worthwhile to do in certain circumstances. First, what are we talking about? Federal law allows individual debtors (i.e. non-businesses) in chapter 7 or …
The Benefits of a Short Tax Year Election to a Bankruptcy Filing Read More »
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