Daniel Gershburg » Homes in Bankruptcy

Updated New York Bankruptcy Limits Means Thousands more will be able to keep their homes and cars and still file

admin — Thu, 15 Jul 2010 17:26:30 +0000

You may now be able to file a Chapter 7 Bankruptcy in New York City and keep your home if you have under $300,000 in equity in it under proposed new limits in New York. Under the new law, waiting to be signed by the Governor, the exemption limits for a house would be increased from $50,000 for a single filer to $150,000 and from $100,000 for a joint filer to $300,000 for joint filers. That, my friends, is huge. What that effectively means is that if you own a condo, or home in New York City, and your mortgage is, for example, $300,000, your home could be worth up to $600,000 and if you file the Trustee is not allowed to take your home! I can’t tell you how many more clients will be able to get a fresh start in Bankruptcy when this bill goes into effect. Additionally, the exemption for equity in a vehicle will rise from its current exemption of $2400, to $4000! Again, while that may not seem like a ton, most vehicles do not have over $4000 in equity in them, unless you put down a huge downpayment. Lastly, and perhaps most importantly, when you file Bankruptcy in New York, you’ll now be able to chose between the New York laws surrounding Bankruptcy OR the Federal exemption limits. New York previously did not allow you to make this choice. Practically speaking, this helps those without a home more than anything else, because there is a wildcard exemption under Federal Rules. In English, that means that if you have some cash, but no home, chances are you’ll get to keep the cash under the Federal exemption laws (of course each case is different). Very very excited and happy about this as you all should be. Once we hear more news, we’ll absolutely pass it along to you.

If you own a house in New York City and you’re filing for Bankruptcy without a lawyer, you’re insane.

admin — Fri, 14 May 2010 15:12:32 +0000

I just came back from a Bankruptcy trustee meeting in Brooklyn, New York. One of the individuals filing for Chapter 7 Bankruptcy in New York was a middle aged man that owned two properties, one of which was his primary residence. Fine. Both residences had some equity in them. Fine (kind of). The individual filing this case was doing this without the assistance of a Bankruptcy lawyer and decided to go at it alone. A screaming match ensued between the Chapter 7 Trustee and the individual within about 2 minutes of the meeting beginning because many of the documents filed were erroneous. Not Fine. Listen, if you own a Mercedes, and the light goes in in the dashboard displaying an engine problem, and you start repairing the car with your own hands (and you’re not a mechanic), the majority of the population would not think you’re the smartest person in the world. Thats because when we spend a large sum of money on an item, be it a house, a car, a boat (dumb idea, I can’t get rid of this boat!) we want to protect that asset. The same goes with filing for Bankruptcy in Brooklyn, or Queens, or anywhere else in New York and not hiring a competent Chapter 7 Bankruptcy lawyer. I get the lawyer jokes you’ll make, I do. I know you’ll think this is self serving and another way for lawyers just to say that no one can do certain things so that lawyers make more money. Thats fine. And to a certain extent, you’re right. For instance if you have no assets and no income, you may find a pro bono association near you that would file your case for free. But don’t confuse that with an individual who does not want to spend a small sum of money to ensure he can keep his house. Because right now, we’re unsure whether or not this individual could in fact keep his house. Lawyers know exemptions limits in Bankruptcy. We know the documents that we need to bring to the Trustee meeting to ensure your meeting doesnt turn into a rematch of Ali-Holyfield. There is a value to this. You’re getting rid of hundreds of thousands of dollars of debt and keeping property you’re legally allowed to keep for a very very reasonable price.

So I say again that if you’re planning on filing for Bankruptcy, do not go at it alone. Its dumb. It doesn’t work in a large percentage of cases I see. And don’t go to one of those $399 preparation services. It’s like bringing your taxes to your uncle who taught Math and saying (Do my taxes!). He doesn’t know how to do your taxes. They don’t know how to file for Bankruptcy in New York properly. Finally, Does anyone want to buy a boat?

When should I file for Bankruptcy in New York City?

admin — Tue, 11 May 2010 17:31:40 +0000

Most of my clients come into my New York City Bankruptcy office and say “I should have done this a while ago and saved myself thousands of dollars.” They say this and I believe what they’re saying is completely accurate. The reason is this: Many people view filing for Chapter 7 Bankruptcy in New York as a completely emotional decision. They figured that they would “never find themselves in this situation:. Or some other clients would say that they felt guilty about discharrging credit card debts when they believed they owed money. While some others mistankanely believed that they would lose their house, car, jobs, pets (yes im serious), you name it. The truth is that had they made the step to file for Bankruptcy months earlier, they would saved hundreds and likely thousands of dollars in minimum payments to credit card companies (when mathematically speaking they wouldnt have been able to pay off the balances for decades (yes im serious). They would have also realized that they could keep their property in almost all instances. And finally, and I think most importantly, they would start rebuilding their credit almost immediately. Because thats what bankruptcy allows a client to do.

Look, no one ever thinks they are going to be the ones sitting in a Bankruptcy meeting and having their debts discharged. Its clearly not a life goal. But that doesn’t mean that once you are in a situation like this, that you should do everything you can to avoid it, even at your emotional and financial peril. had clients who weren’t sleeping for months prior to filing. Clients who refused to use their own checking accounts for fear of having it frozen, or having their wages garnished. What I’m saying is that Bankruptcy affords you a way out of this financial mess with a very straightforward procedure. it allows you to restart your financial life, and in all honesty, your entire life, all over again. So before you fork over your next minimum payment of several hundred dollar to a credit card that you know you’ll never be able to pay Ive off, at least speak to a Bankruptcy attorney as one of your options.

What if you have assets during a Chapter 7 Bankruptcy in Manhattan: Dont be Greedy!

admin — Wed, 03 Mar 2010 14:34:50 +0000

by: Daniel Gershburg, Esq.

Lets be real. No one necessarily wants to file for Chapter 7 Bankruptcy in Manhattan as a first step. Its obviously a last resort. You’ve gotten yourself into a ton of debt and there doesnt seem to be a way out. But you have to take practical steps if you want to move forward during the process if you don’t want any issues.

What am I babbling about? Well, under the Bankruptcy Code, you have certain exemptions, meaning you can keep a certain percentage of your stuff when you file for Bankruptcy and the creditor and Trustee cannot get their hands on it. Some examples include $50,000 in home equity in your home, $2400 from a Bank Account, all of your IRA’s, 401k’s etc. However, lets say you have some cash in the bank above that $2400 and you really need to get this Bankruptcy filed. Dont hide it or move the money. Don’t try and be crafty and put it into someone elses account. Just let it go. You heard me. Let it go.

Lets say you had $100,000 in debt. Not a crazy figure and I see it everyday in my Brooklyn office. If I told you I could get rid of $100,000 in debt for $5,000, chances are, you’d kiss me (ethically inappropriate under most circumstances.) However, the problem is many clients will try and save their very last dime from the Trustee, and thats just not a great way to go about doing things. If you have $7000 in your bank account because you saved a couple of bucks, protect the $2400 and give the rest to the Trustee during the Bankruptcy filing. The Trustee will be happy, which means less problems, if any, for the Bankruptcy, and for that amount of money you’ve known gotten rid of about $100,000 in debt.

It seems counterintuitive to us. Why give up money when we can “protect” it. I get that. The problem is the amount your protecting as a percentage of the debt you’re being forgiven is minimal. The trade off is absolutely amazing. So my advice is not to mess up this amazing tradeoff but trying to keep every last dollar. It will only cause problems for you and your attorney in the actual case. Of course, like anything Bankruptcy related, there are many caveats to discuss, but in general I think you get the idea.

Manhattan Chapter 7 Lawyer discusses keeping your home in a Chapter 7 Bankruptcy in New York City

admin — Wed, 02 Dec 2009 16:36:05 +0000

Hey guys:

Its been some time since we last blogged about Bankruptcy in Murray Hill, Bed Stuy, or anywhere in New York for that matter. Weve been working for the new site for some time. I hope all of you enjoy it. Having said that, here is the next in my series of video blogs surrounding the steps of keeping your home in a Chapter 7 Bankruptcy in New York City. In essence, the video discusses the things you should do if you want to determine if you qualify for filing Chapter 7 Bankruptcy in Manhattan, Brooklyn, or anywhere in New York. Hope you enjoy it.

Brooklyn Chapter 7 Bankruptcy Lawyer discusses keeping your home in Bankruptcy