When it comes to bankruptcy, you will notice that the law in most states in the country is similar. There are, however, subtle differences that it will benefit you to know about. The law which varies most among the states has to do with what exemptions you are allowed to claim. Exemptions are claimed when filing Chapter 7 bankruptcy as a way to keep property from ending up in the hands of your creditors. Each state allows you to declare different property as exempt. The following exemptions may be claimed when you file for bankruptcy in New York.
Exemption for Homestead
When declaring bankruptcy in New York, you'll be pleased to know that you have little chance of losing your home. If you have a mortgage, be aware that you will not be relieved of this debt when you declare bankruptcy. If you are facing foreclosure, you must file Chapter 13 bankruptcy; it won't wipe away your debt, but it will keep your creditors from taking your home. The homestead exemption for the state of New York protects real property such as a co-op, condo, or mobile home up to $10,000. To make things even more beneficial for you, if you are married then you and your spouse may double this figure.
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Personal property exemptions
You will be given plenty of exemptions for your personal property when you declare bankruptcy in New York. An example of these exemptions includes the following: bible, textbooks, books up to $50, pictures, clothing, church seats, stoves with 60 days of fuel, sewing machine, domestic animals with food for 60 days up to $450, 60 days worth of personal food, furniture, burial plots, TV, burial plot and structure up to a quarter acre, radio, wedding ring, watch, crockery, cooking utensils, table wear, and farm machinery. There are many other exemptions for personal property that you will be able to benefit from as well; be sure to discuss this with a bankruptcy attorney for the best results.
Miscellaneous Exemptions
As you can see, there are plenty of exemptions that you may take advantage of when you declare bankruptcy in New York. The following are a few more examples so that you will know what to expect: life insurance proceeds, alimony, child support, business partnership property, pensions such as IRAs, public benefits such as aid to the blind, tools of trade, and 90 per cent of earned but unpaid wages.
If you are facing financial hardships, and thinking about bankruptcy, consult with a bankruptcy lawyer in your area to discuss your options.
