Legal Question in Bankruptcy in New York

Re: Property Sold at Short Sale

Bankruptcy is FEDERAL action; New York's jurisdictional lines do not apply when it comes to seizing assets. The Trustee has national jurisdiction to lay claim to debtor's assets. So yes, a primary residence in TX can be affected by a bankruptcy filing in NY.

The bankruptcy courts in NY may not have jurisdiction to hear the case if Debtor's primary residence is in TX; i.e., the case may get thrown out in NY and Debtor required to refile in the appropriate district in TX.

There are large differences (larger since the 2005 Bankruptcy Abuse Prevention Act went into effect in November 2005) between filing under Chapter 7 and filing under Chapter 13. Make sure you hire an attorney to represent you through your bankruptcy proceeding and help you determine the best course of action for you to follow. Bankruptcy, before this act was passed into law, was a relatively straightforward process; it is now not straightforward at all. The debtor who attempts to handle bankruptcy on his/her own is playing with dynamite. Make sure you have an attorney at your side to help you avoid blowing up your case.

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.