Legal Question in Bankruptcy in New York

Bankruptcy

I have approx. 240K of CC debt from purchases and cash advances. Also medical and dental bills. 3 childrens college loans that we cosigned for total of 90k. I have a car that is worth 10K and I owe 16K (owe more than it's worth). Combined income now down to 60K. Can we claim bankruptcy in NY if we make this combined salary and is our home in jeopardy if it has an approx. value of 554k and we owe 426K on mortgage and a heloc loan of 70K. Please advise. Thanks.


Asked on 9/19/08, 10:45 am

2 Answers from Attorneys

Christopher Di Giacomo Di Giacomo & Gruss

Re: Bankruptcy

Sure can. You have two options and depending on what you want to do, you could file either a Chapter 7 or Chapter 13.

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Answered on 9/19/08, 10:57 am
Andrew M. Doktofsky Andrew M. Doktofsky, P.C.

Re: Bankruptcy

To determine if you qualify for a Chapter 7 bankruptcy, it is necessary to look at your combined income (whether filing alone or jointly with your spouse) for the prior six months. The income for the prior six months is then averaged out on an annual basis. In your case, is this annual average is $60,000, then you will qualify, based on the facts you have provided. If the house is owned jointly, then the equity in the home is well within the combined exemption limit of $100,000 ($50,000 each), so you can keep your home. $240,000 in credit card debt is unusually large and this will most likely require an explanation to the bankruptcy trustee and United States Trustee. Student loans are almost never dischargeable.

Please contact my office directly if you would like to discuss your situation further. You may also visit my website at amdlaw.com for more information.

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Answered on 9/19/08, 11:03 am


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