You should know how bankruptcy works after you come forward with a petition. That is, you may be well aware that your appointed bankruptcy trustee will soon seize certain property and assets, liquidate them, and use their proceeds to pay off your outstanding debts. While you may be grateful for the assistance and the opportunity to feel financial relief, you may still be hesitant to part ways with specific things. If so, you should exercise your right to claim bankruptcy exemptions. Please follow along to find out what is considered a bankruptcy exemption and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C., can help you apply as many of these to your case as possible.
What qualifies as a bankruptcy exemption in New York?
First things first, as alluded to above, a bankruptcy exemption may allow you, the debtor, to keep certain property and assets from being taken by creditors during your consumer bankruptcy proceedings. Usually, the characteristics for qualifying property and assets are that they let you maintain a basic standard of living during bankruptcy and have the necessities to rebuild financially after bankruptcy.
With that being said, the most common one is the homestead exemption. Location matters when it comes to how much equity in your primary residence you can protect from being used to satisfy debts. Specifically, your Rockland County residence may receive up to $150,000 in safeguarding. This means that if your home equity is $175,000, your creditors may only attempt to seize up to $25,000. Besides this, other qualifying New York State bankruptcy exemptions are as follows:
- Motor vehicle exemption.
- Pension and retirement benefits exemption.
- Personal property exemption.
- Tools of the trade exemption.
- Wages and income exemption.
- Public benefits exemption.
- Lawsuit awards and settlements exemption.
- Wildcard exemption (if you do not use the homestead exemption).
How do I qualify for a bankruptcy exemption in my proceedings?
You must understand that these aforementioned bankruptcy exemptions are not automatically granted to you or calculated on your behalf. Rather, you must put in the hard work if you wish to protect your property and assets and overall maintain your financial well-being during this sensitive time. That is, you must fill out Schedule C with the full list of property and assets you want the New York State Bankruptcy Court to approve exemptions for. This form must supplement the rest of the official bankruptcy paperwork that you initially filed. After this, it may be too late to make additional requests.
It is also worth mentioning that qualifying for a bankruptcy exemption in your New York case means you must demonstrate that you have been domiciled in this state for at least 730 days before filing your petition. This may require you to produce supplemental evidence such as your utility bills, bank statements, driver’s license, vehicle registration, and more that show your New York address.
We understand that you must be eager to start this process. So, without further delay, please schedule your initial consultation with a talented Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C., today.
