Facing foreclosure, should I consider bankruptcy?

On January 14, 2011, in Bankruptcy, Foreclosure, by Robbie L. Vaughn, Esq.

Yes.

Why?

Because the longer you wait to file bankruptcy, the more difficult it may be to save your home.

But the bank might modify my mortgage.

Sure, but what if the bank doesn’t modify your mortgage. While you wait for a potential loan modification – your mortgage arrears and the interest are piling up. This could potentially prevent you from putting forth a confirmable chapter 13 plan.

NY bankruptcy law just got better.

On 1/21/11 new bankruptcy exemptions go into effect (see our earlier posts Changes to NY Bankruptcy Exemptions and Federal Bankruptcy Exemptions & NY).

You should at least consult with a knowledgeable bankruptcy attorney to find out how filing bankruptcy can save your home (see our earlier posts Filing Bankruptcy to Save Your Home From Foreclosure and How Can I Use My Ch.7 Bankruptcy to Avoid Foreclosure).

We understand that bankruptcy is not for everyone. That is why we also offer foreclosure defense, debt negotiation, etc. We are simply stating that bankruptcy is an option that should be considered. At The Law Firm of Vaughn & Weber, PLLC, we don’t push our clients to file bankruptcy. We give you all of your options and assist you in deciding which course of action is best for you.

This is not legal advice!

The Law Firm of Vaughn & Weber, PLLC routinely represents homeowners facing foreclosure. We examine each homeowner’s specific situation to determine their best course of action.

We proudly assist residents of Long Island (Nassau county, Suffolk county) and New York City (Queens, Brooklyn, Bronx, Staten Island, Manhattan) with their bankruptcy and foreclosure matters. We are conveniently located in the heart of Nassau County, Long Island, at 393 Jericho Tpke., Ste. 208, Mineola, NY 11501

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

Please visit our Foreclosure category to learn more about foreclosure issues.

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

Changes to NY Bankruptcy Exemptions

On December 24, 2010, in Bankruptcy, by Robbie L. Vaughn, Esq.

Governor David A. Paterson has signed into law S.7034-A/A.8735-A, which will increase the amount of New York’s bankruptcy exemptions and allow NY debtors to choose  the federal (see Federal Bankruptcy Exemptions & NY) or the new New York state exemptions.

The following is a summary of the changes:

  • Increases the homestead exemption under Section 5206 of the CPLR from $50,000 to: $150,000 for the counties of Kings, New York, Queens, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam; $125,000 for the counties of Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster; $75,000 for the remaining counties in the state;
  • Increases motor vehicle exemption under section 282 of the Debtor and Creditor Law from $2,400 to $4,000  for one motor vehicle. If such vehicle is equipped for use by a disabled person, the exemption amount is $10,000 in bankruptcy;
  • Increases the amount of the aggregate individual bankruptcy exemption for certain annuities and personal property under section 283 of the debtor and creditor law from $5,000 to $10,000;
  • Adds a new section 285 to the Debtor and Creditor Law permitting debtors to choose either the current federal exemptions or the new New York exemptions;
  • Increase the exemption for books and religious texts from $50 to $500;
  • Increases the domestic animals and food exemption from $450 to $1,000;
  • Increases one watch from $35 to $1,000 and adds jewelry and art to this category;
  • Increases the tools of trade exemption from $600 to $3,000;
  • Adds a wildcard exemption, if no homestead exemption is claimed,  of $1,000 for personal property, bank account, or cash;
  • Provides for the exemption of one computer and associated equipment, and one cell phone;
  • Exempt up to $6000 cash if no homestead exemption taken and aggregate individual bankruptcy exemption totals $5000 or less.

The entire bill can be found here or here .

We proudly assist residents of Long Island (Nassau county, Suffolk county) and New York City (Queens, Brooklyn, Bronx, Staten Island, Manhattan) with their bankruptcy filings.  

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

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