Bankruptcy can be a tricky thing to understand. While the thought of filing for bankruptcy may be scary, it’s important to have a thorough understanding of what bankruptcy means and how it will affect you and your future.
Here are some frequently asked questions about filing bankruptcy in Brooklyn to give you a better understanding of if filing is right for you and your situation.
In New York, what property can I keep?
The property you are able to keep depends on if you are filing Chapter 7 or Chapter 13 bankruptcy.
Chapter 7 bankruptcy provides you with the ability to keep any “exempt” property, keeping in mind that the value of your property is the current value of the item and not what you originally paid for it. Things like cars, that can lose their value quickly, are to be considered when determining the amount of property you own.
Filing Chapter 13 bankruptcy allows you to keep all your property, it just reconfigures your debt repayment plans to a more manageable amount.
What will happen to my home and car if I file Bankruptcy in New York?
Under most circumstances, you will be able to keep your home and car after filing for bankruptcy in New York. If the property value is fully exempt, or if you can pay the amount that is not exempt, you will be able to keep your car and home.
Filing for bankruptcy does not get you out of making payments on things like your mortgage. If you do not continue to make the necessary payments, debt collectors do have the ability to take your home or car away even if you have filed for bankruptcy.
Can I own anything after bankruptcy?
Bankruptcy will not prevent you from owning anything and will allow you to keep any exempt property and anything purchased after your bankruptcy has been filed.
But filing for bankruptcy may affect any inheritance, settlement, or insurance policy you receive within 180 days of filing. You may be required to use this money to pay back your debt if the money isn’t considered exempt in the state of New York.
For more questions regarding filing for bankruptcy, contact a Brooklyn bankruptcy attorney at Michael F. Kanzer & Associates, P.C. We have helped hundreds of individuals discharge their debts by providing expert protection against Chapter 7, Chapter 11, Chapter 12, and Chapter 13 bankruptcy for more than a decade.