Homeowners previously had an exemption of $50,000 for the equity in their home. Now each party on the deed has an exemption on Long Island for $150,000 in equity on their home. Therefore, a husband and wife who own a home together have $300,000 in exemptions when they file bankruptcy. This means homeowners on Long Island can file a Chapter 7 Bankruptcy, have $300,000 of equity on their home and still beat their creditors!!
New Bankruptcy Exemption Law in New York
The new bankruptcy law went into effect on January 22, 2010. In addition to the home equity allowances, new rules concerning jewelry, art, a computer, a cell phone, pets and pet food have been listed to the exemptions. The new bankruptcy exemptions are designed to reflect the current valuation of homes and the costs of living in New York.
We’ve anticipated that there will be more bankruptcy filings in New York State due to the liberalized exemptions. With $300,000 in exemptions, most middle class families in financial trouble will be able to file bankruptcy on Long Island and still keep their homes. This will make filing a Chapter 7 ( or straight bankruptcy) a better option for homeowners with credit card debt and other financial obligations.
Under the new exemptions, renters can now use the homestead exemption and claim another $1,000 in personal property or cash as an exemption in their bankruptcy. The new law also allows New Yorkers to choose between the Federal Exemptions and the State Exemptions when they file bankruptcy. Homeowners facing foreclosure now have a better option when they file bankruptcy.
New York and Long Island Bankruptcy Attorneys
At the Law Offices of Schlissel DeCorpo, we have been filing bankruptcy for our clients for more than thirty years. Our office has been involved in more than four hundred bankruptcy cases on behalf of our clients. We file Chapter 7 and Chapter 13 bankruptcies. We discuss with our clients the type of bankruptcy that is best for them. We help our clients reestablish credit. We can, in some situations, eliminate second mortgage liens. The bankruptcies we file can be utilized to stop foreclosures. In addition we provide detailed foreclosure defense representation for our clients. We assist our clients in mortgage modifications. We maintain a foreclosure blog to provide information on foreclosure issues for our clients. We litigate defective foreclosure lawsuits, predatory lending, defective mortgages and bad faith on behalf of financial institutions. Feel free to call us for a free consultation at 516-561-6645, 718-350-2802 or 1-800-344-6431. Our phones are monitored 24/7.