Legal Question in Bankruptcy in New York
bankruptcy
If I have a mortgage on my home and I declare bankruptcy will they take my home and forclose? I can afford to pay my mortgage but not much else.
I'm falling behind in my bills and was declined on a refinance because of my credit status.
2 Answers from Attorneys
Re: bankruptcy
Whether your home is taken in a bankruptcy or not depends on several factors, such as the Chapter of the bankruptcy code under which you file and the amount of equity you have in the home.
You need to HIRE A LAWYER to help you through this difficult time. Do NOT try to handle a bankruptcy by yourself; that is the fastest way to get your case dismissed in such a way that you can never re-file. Find a lawyer in your community who handles bankruptcy work; your county bar or the NYS Bar Association (www.nysba.org) should be able to provide a referral. If you fall within their guidelines and truly cannot afford a lawyer, your county's Legal Aid Society can probably help you out at low or no cost to you (this is NOT charity; these lawyers are paid, and the funds do not come from taxes or from donations).
THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.
Re: bankruptcy
If you are current on your mortgage payments and you have $50,000 or less in equity in your home ($100,000 if owned with a spouse or other joint owner), then you may be able to file a Chapter 7 bankruptcy to discharge your debts. You would keep your home. There are income requirements to qualify for Chapter 7. Also, this is assuming you do not have any other non-exempt assets.
In the alternative, you can file for Chapter 13 bankruptcy if you are behind in your mortgage or if you do not qualify for Chapter 7.
There are many variables in determining whether you can and/or should file for bankruptcy. Please contact my office directly if you would like to discuss further.
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