Legal Question in Bankruptcy in New York
Hello-
I have a question regarding chapter 7 bankruptcy (NY State).If I were to consider a ch.7 filing in a situation where I have an asset (a brokerage account)with more then the total debt owed-is there any way to avoid having that acct.liquidated prior to the debts being discharged?I also have a 401k which my understanding is exempt,and was recently started through my employer.
I have other alternatives to bankruptcy,but I'm hoping not to have to sacrifice a large portion of the brokerage acct.Also-can creditors take more then I owe for expenses,etc...?
Any advice would help.
Thank You.
1 Answer from Attorneys
In a Chapter 7 Petition in Bankruptcy - pursuant to NYS exemptions - you are allowed to exempt $2,500 per debtor (joint debtors get $5,000). Your brokerage account is not exempt beyond this. If you were to file a Ch. 7 Petition, the trustee can, and most likely will, take over ownership of the stocks or bonds you own and sell them and pay off creditors.
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