Bankruptcy filings on Long Island are on the rise. In March of 2011, more bankruptcies were filed on Long Island than any other time in the past two years.
Change In Bankruptcy Exemptions
There was a significant change in the bankruptcy exemptions in New York in January, 2011. Individuals now filing a Chapter 7 bankruptcy can exempt $150,000.00 in equity in their home. A couple filing a Chapter 7 bankruptcy can exempt $300,000.00 in equity in their home. This means a couple filing a Chapter 7 bankruptcy can discharge their debt and keep their home even if they have $300,000.00 in equity in their home. This is the
main reason why Chapter 7 bankruptcy filings have increased.
Let’s look at an example involving the bankruptcy exemptions. Let’s suppose you
have a home worth $500,000.00 and you and your wife have a mortgage of $250,000.00 on it. You also have $50,000.00 in credit card debt, you owe a doctor $10,000.00 and have a personal loan that you didn’t pay in the amount of $10,000.00. You can file a joint Chapter 7 bankruptcy with your wife, eliminate the $70,000.00 in personal debt, and keep your home. This is provided you are up to date on your mortgage at the time you file your bankruptcy and you continue making your mortgage payments on a timely basis. Filing a Chapter 7 bankruptcy if you’re in financial difficulty may be a good idea!
Long Island and Queens County Bankruptcy Lawyers
If you have questions about filing bankruptcy, contact the bankruptcy lawyers at the Law Offices of Schlissel DeCorpo. We represent individuals filing Chapter 7 and Chapter 13 bankruptcies. We will discuss with you prior to filing bankruptcy, why bankruptcy may be the best route to resolve your financial problems and also explain the various types of bankruptcies available to you. At the end of the bankruptcy we’ll help you re-establish your credit. It is important to know that under Chapter 13 bankruptcies the lien created by second mortgages can sometimes be eliminated. Bankruptcies can help you stop foreclosure proceedings from moving forward and eliminate debt collection hassles. Call us for a free consultation.
