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 .”
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!
I was just served with a foreclosure summons and complaint, what should I do?
You should respond!
The summons tells you that a foreclosure action has been filed and that you have twenty (20) or thirty (30) days to respond. The complaint tells you why the foreclosure action was brought.
There are several different ways for you to respond to the foreclosure action (see our earlier post “What Can I do if I’m facing Foreclosure”). However, many of these responses won’t stop the foreclosure action or prohibit the bank from obtaining a default judgment against you. Generally, a default judgment will be issued if you fail to file an answer or other legal response when it is due. It is possible to defend a foreclosure action after a default judgment (see our earlier post “Defending Foreclosure after a Default Judgment”), but it is very risky, more difficult and will likely be more expensive. Therefore, it is best to avoid having a default judgment entered against you.
You should consider consulting a competent foreclosure defense attorney ASAP!
As always, The Long Island Foreclosure Defense Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY 11501. Contact us at (516) 858-2620 to arrange a consultation with a foreclosure defense lawyer.
Wall Street Reform Bill: Free credit report for rejected renters
The Dodd-Frank financial regulatory reform bill which passed through Congress and is headed for President Obama’s desk, contains a provision which will require that rejected renters be provided with a free copy of their credit report.
The Wall Street Journal reports that there is a provision in the bill that “would give prospective renters access to a free copy of the credit score that a landlord or broker used to evaluate their application.”
The article quotes a source as saying “that by forcing landlords to give out these credit scores, they would be deterred from using discriminatory factors like race or age in their decisions of whether or not to rent to particular applicants.”
As always, The Long Island Landlord-Tenant Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY 11501. Contact us at (516) 858-2620 to arrange a consultation with a Landlord-Tenant attorney.
Wall Street Reform Bill: $1 billion fund to help unemployed homeowners avoid foreclosure
The Dodd-Frank financial regulatory reform bill which passed through Congress and is headed for President Obama’s desk, contains a provision that is likely to help some unemployed homeowners avoid foreclosure.
The Washington Independent reports that there is a provision in the bill to set up “the Emergency Homeowners’ Relief Fund…a $1 billion fund to help unemployed workers stay in their homes.” According to the article the fund should be in place by October 1, 2010 and “will offer qualified unemployed homeowners low-interest loans up to $50,000 to help them keep up with their mortgage payments and remain in their homes.”
The article also reminds us that “On July 1, the Treasury Department started up the Home Affordable Unemployment Program. Through the program, banks and lenders will let unemployed homeowners stop paying their mortgages for set periods of time while they look for work, or will reduce payments to less than 31 percent of the homeowner’s gross monthly income for a set amount of time. (That means that if the homeowner’s income is zero, the payment will be zero. If he or she is taking severance or receiving unemployment insurance, it will be about a third of that.)”
As always, The Foreclosure Defense Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY. Contact us at (516) 858-2620 to arrange a consultation with a foreclosure defense attorney.