New York Bankruptcy Laws
The state of New York is divided into four bankruptcy districts: New York Eastern District Court, New York Western District Court, New York Northern District Court and New York Southern District Court. These courts serve the entire state of New York . New York bankruptcy gives troubled debtors a fresh start because bankruptcy protects consumers against lawsuit from creditors.
Even the Supreme Court noted in Kokoszka v. Belford, "...the intent of Congress (was) to leave the (debtor) free... to accumulate new wealth in the future and thus make an unencumbered fresh start." In Wetmore v. Markoe, the court stated "systems of bankruptcy are designed to relieve the honest debtor front eh weight of indebtedness which has become oppressive and to permit him to have a fresh start in...life, freed from the obligations and responsibilities which may have resulted from...misfortunes."
New York State Exemptions
According to the Lawyers.com website, under New York bankruptcy laws, you can generally keep:
- Unemployment, disability, workers' compensation, veterans' and social security benefits
- Alimony, and child support
- Retirement plan and life insurance proceeds
- Work uniforms, farm machinery and other business equipment
- Bible and schoolbooks
- Photos and clothing
- Burial plot up to 1/4th acre
- Furniture, refrigerator, TV, radio sewing machine and cooking utensils and tableware
- Stoves with fuel to last 60 days
- Wedding ring, and watch up to $35 in value
- Any professionally prescribed health aids
- Crime victim and workers' compensation
- Wrongful death recoveries for person that you depended on as needed for support
- Books up to $50
- Personal injury recoveries to $7,500
- Property of business partnership
- Tools of the trade up to $600
- The personal property you keep can't be worth more than $5,000 total.
NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.
New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.
This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.
Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.
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