Posted: April 14, 2020
When you file for Chapter 7 bankruptcy, all of your property becomes part of your bankruptcy estate. Immediately upon your filing, a Chapter 7 Trustee will be assigned to your case. It is the Trustee’s duty to investigate your assets and determine if the administration of those assets would create a benefit to your creditors. If the Trustee decides that the creditors would benefit from a sale of any of your property, the Trustee will seek to liquidate any non-exempt property with equity. This will include a vacation home, if you own one. In New York, you are entitled to claim certain exemptions. Specially, a homestead exemption. This exemption only applies to property that you reside in. As such, a homestead exemption is not available for a vacation home. However, in New York you may opt to claim the Federal exemptions and there is something called a wild card exemption, which you can use for any property to the extent that you do not use a homestead exemption. The maximum wildcard exemption is $13,900.00. Therefore the Trustee will look at all of the factors, including what exemptions are claimed and review the documents to see if there is any equity in your vacation home over and above any liens outstanding on the property and make a determination of whether or not it would be beneficial to your creditors to liquidate your vacation home.
It is important to consult with and seek help from a seasoned bankruptcy attorney to review your particular circumstances, to explain your options, and to vigorously represent your legal interests should be at the top of your list. Kirschenbaum & Kirschenbaum, P.C. has an expert bankruptcy team with over 40 years of experience representing parties in the bankruptcy court. Not only do we have the knowledge, competence, ability and drive necessary to obtain the relief you need, but we also care, and will take those extra steps necessary to bring stability back to your life.
For assistance with all Bankruptcy matters, please contact us:
Ken Kirschenbaum, Esq. (516)-747-6700 Ext. 301 or
Stacy Spector, Esq. (516)-747-6700 Ext. 304 or