When an individual is struggling financially and feels as though they will never be able to pay back their overwhelming debts, they may want to consider filing for bankruptcy. A lot of people are apprehensive about filing for bankruptcy because they are afraid that they will never build back their credit score and they will lose many of their personal belongings. The truth of the matter is, credit can be easily rebuilt after bankruptcy and while some items may be lost depending on the situation, most of them will not be.
In a Chapter 7 bankruptcy, most people are able to keep certain assets. Debtors are permitted to keep up to $10,000 in personal items. It is also important to note that the $10,000 preservation cap does not include wedding rings. televisions, life insurance policies, and annuities because those are already exempt. The Homestead Exemption exists to protect the equity on one’s home. Certain automobiles may also be exempt from a bankruptcy, depending on their value. The property that does have to be surrendered will be used to repay some of the debts. However, if an individual doesn’t have more than $10,000 in property, they may not have to get rid of anything.
In a Chapter 13 bankruptcy, the debtor is on a debt repayment plan so it is likely that they will be able to keep all of their property.
If you have questions about bankruptcy in New York, contact our firm today.
Matters related to bankruptcy and estate planning are very significant in one’s life and require the services of an experienced attorney. Our firm proudly serves clients throughout Rockland County and New York State. If you need effective legal guidance, contact Koplen Law today to schedule a consultation.