Posted: March 23, 2020


     This is a common fear and concern when contemplating filing for bankruptcy. Your bills are mounting up and feel like there is no end in sight and you have no way out, so declaring bankruptcy seems like the best option under the circumstances. But you also don’t want to lose your home in the process. This is a natural and realistic fear for many.

     When you file for bankruptcy, you must list all of your property, including your house, if you own one. However, you are entitled to claim an exemption for your residence. In the State of New York, the maximum homestead exemption is $170,825 in the counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, or Putnam. This means that you will be able to keep your house to the extent that there is not more equity in the house that can be protected by the exemption. For example, if your house has an approximate value of $500,000 and your outstanding mortgage balance is $400,000, there is not any sufficient equity after deducting the mortgage amount and the available exemption. It is important that your mortgage is current and continues to stay current during the bankruptcy. However, if the equity in your home exceeds the value of the exemption, you could be at risk for the Trustee assigned to your case to make an attempt to sell your house in order to satisfy the claims of the creditors of your bankruptcy estate. 

     It is prudent to talk to competent and experienced bankruptcy counsel in order to understand your legal rights and your options.


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