If you are deep in debt, you may have come to realize that filing for Chapter 7 bankruptcy may offer you the fresh start that you truly need and deserve. If you live in the Bronx and plan to file a Chapter 7 bankruptcy, you will have to decide between the New York exemptions and the federal exemptions.
At the Law Offices of David Brodman, we know how important it is that you choose the right bankruptcy exemptions. We will carefully review your situation and help you determine which set of bankruptcy exemptions would benefit you the most.
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Bankruptcy exemptions allow you to keep certain property when filing for bankruptcy, whether you choose the New York or federal exemptions will depend on what property you want to keep.
With a Chapter 7 bankruptcy, you discharge or "wipe out" most of your debt, but in exchange for your discharge, you may have to give up certain property to the trustee who will use that money to repay your creditors. The bankruptcy exemptions allow you to keep certain property and in many Chapter 7 cases, debtors get to keep all of their property.
Some states require that debtors use their exemptions, while others allow bankruptcy filers to choose between their state's exemptions or the federal exemptions. In New York, you get to choose between the state and federal exemptions.
Debtors are generally concerned about keeping their home, vehicle, life insurance, jewelry, and retirement accounts. Here are some examples of how New York's exemptions compare to the federal exemptions.
As far as retirement accounts, most others are fully exempt under the New York and federal bankruptcy exemptions. Additionally, all values are doubled for husbands and wives who file jointly.
For Bronx, Kings, Queens, NY, Richmond, Nassau, Suffolk, Putnam, Rockland, Putnam, and Westchester counties, the homestead exemption amount is $150,000 under the state exemptions.
When you take a look at the big picture, New York's scheme provides more generous life insurance and homestead exemptions, while the federal scheme has a more generous wildcard exemption. For a more detailed list of the state and federal bankruptcy exemptions, contact a Bronx bankruptcy attorney from the Law Offices of David Brodman.