Bankruptcy and Exempt Property

On August 13, 2010, in Bankruptcy, by Robbie L. Vaughn, Esq.

Exempt Property

What is Exempt Property?

Exempt property is property that is protected by law from the claims of creditors. However, if exempt property has been pledged to secure a debt or is otherwise encumbered by a valid lien or mortgage, the lien or mortgage holder may claim the exempt property by foreclosing upon or otherwise enforcing the creditor’s lien or mortgage. In bankruptcy cases, property may be exempt under either state or federal law. However, NY has opted out of the federal law exemptions. Exempt property typically includes all or a portion of a person’s home equity, motor vehicle equity, household furniture and personal effects.

What Will Happen to My Non-Exempt Property If I File Bankruptcy?

Non exempt property is part of your bankruptcy estate and is subject to sale by the bankruptcy trustee (the debtor is entitled to receive any exempt portion of the sale proceeds).  However, even if your property is not fully exempt, you may be able to keep it if you pay its non-exempt value to your creditors in a chapter 13 bankruptcy.  Also, you could agree to pay the trustee an amount that would allow you to, in essence, buy back the non-exempt property.  The money that you pay to the trustee will be distributed to your creditors.  You may also be able to “trade” exempt property for non-exempt property.  Essentially, you allow the trustee to take and sale exempt property to avoid losing non-exempt property.  There are additional options available.  A knowledgeable bankruptcy attorney will be able to assist you with “exemption planning .”

Call (516) 858-2620 to arrange a FREE  consultation with a bankruptcy attorney!

Please visit our Bankruptcy category to learn more about filing bankruptcy.

Bankruptcy Attorney. Bankruptcy and The Automatic Stay

On May 13, 2010, in Bankruptcy, by Robbie L. Vaughn, Esq.

Automatic Stay in Bankruptcy

The Automatic Stay

The filing of a chapter 7 or Chapter 13 bankruptcy case automatically stays (stops or suspends) virtually all collection attempts (including those harassing phone calls), attachments, garnishments, foreclosures, and other actions by creditors against the person filing (the debtor) and their property.  A few days after a chapter 7 or 13 bankruptcy case is filed, the court will mail a notice to all creditors ordering them to refrain from taking any further action against the debtor.  Any creditor who intentionally violates the automatic stay may be held liable in damages to the debtor.

However, criminal proceedings and actions to collect domestic support obligations are not normally stayed. The automatic stay also does not protect cosigners and guarantors of the person filing, and a creditor may continue to collect debts from those persons after the case is filed (chapter 7) or completed (chapter 13). Also, debtors who have had one or more recent bankruptcy cases dismissed may have the automatic stay shortened or denied altogether.

Caveat: A creditor could make a motion to “lift” the automatic stay. Such a motion, if granted, would allow that creditor to continue collection efforts against the debtor or their property.

Bankruptcy Attorney in Mineola

As always, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you.  We are conveniently located in the heart of Nassau County, Long Island, at 393 Jericho Turnpike in Mineola, NY 11501.  Contact us at (516) 858-2620 to arrange a consultation with a bankruptcy attorney.

Please visit our Bankruptcy category to learn more about filing chapter 7 or 13 bankruptcy.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. This website is Attorney Advertising. It does not form an attorney-client relationship. We are a debt relief agency and a law firm that helps people file for bankruptcy relief under the U.S. Bankruptcy Code – Title 11. Prior results do not guarantee a similar outcome. Proudly assisting residents of Long Island, Nassau county, Suffolk county, New York City, Queens, Brooklyn, Bronx, Staten Island, Manhattan