Chapter 13 bankruptcy is a great way for many individuals to restructure their financial situation and move on with their lives. However, though bankruptcy can be a fantastic option, people frequently have reservations about filing, primarily because of a fear that they will “lose everything.” Fortunately, we are very happy to tell our clients that in fact, filing for bankruptcy is quite the opposite, and many clients are relieved to learn just how much they are actually allowed to keep. To learn more about which assets you may be entitled to keep after filing Chapter 13 bankruptcy in New York State, please continue reading and reach out to our experienced Rockland County bankruptcy attorney to learn more about how our firm can help you through every step of the process ahead. Here are some of the questions you may have:
Am I allowed to keep my bank account when filing Chapter 13 bankruptcy?
Many clients are particularly relieved to learn that they may keep as much money as they would like in their bank accounts when filing Chapter 13. This is because Chapter 13 bankruptcy is essentially where you pay your creditors as much as you can. Therefore, they are still receiving payments, and because of this, they will not touch your assets.
Will I lose my home if I file for Chapter 13 bankruptcy?
No. In fact, many people file for Chapter 13 bankruptcy specifically so they may keep their homes. As long as you can prove to the court that you have sufficient income to resume making your monthly mortgage payments and that you can pay past due amounts to your mortgage lender over 3-5 years with no interest, you should be allowed to keep your home and save it from foreclosure.
Am I allowed to keep my pension in Chapter 13 bankruptcy?
Yes, you are. You may keep your IRA pension, as well as various other retirement plans after filing for bankruptcy. In fact, you are entitled to keep unlimited funds in these protected accounts.
How do I know if I qualify for Chapter 13 bankruptcy?
If you wish to file Chapter 13 bankruptcy, you must meet the following qualifications. You must be:
- An individual
- You must have a regular income that is greater than your reasonable living expenses
- You must have less than $360,000 in unsecured debts
- You must have less than $1,310,000 in secured debts.
Contact our experienced New York firm
The Law Offices of Allen A. Kolber, Esq. effectively represents clients facing Bankruptcy in Rockland County and all of New York State. Our firm understands the stress one can feel when facing a difficult financial future. Our compassionate staff will work to ease your fears and help you make a new start. If you need quality legal support, contact The Law Offices of Allen A. Kolber, Esq.