It is essential to understand New York bankruptcy law if you are considering filing for bankruptcy protection in the state. New York follows federal law, but the state's property exemptions diverge from federal regulations.
There are two types of bankruptcy. The first, Chapter 7 bankruptcy, is the most common form. In these bankruptcy cases, the business or individual has very few assets and little ability to pay back any creditors. The ability to qualify for Chapter 7 bankruptcy is based on income and the means test. Any property that is not exempt by New York law can be seized and sold to pay creditors.
The second type of bankruptcy is called Chapter 13 bankruptcy. Chapter ...
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It is essential to understand New York bankruptcy law if you are considering filing for bankruptcy protection in the state. New York follows federal law, but the state's property exemptions diverge from federal regulations.
There are two types of bankruptcy. The first, Chapter 7 bankruptcy, is the most common form. In these bankruptcy cases, the business or individual has very few assets and little ability to pay back any creditors. The ability to qualify for Chapter 7 bankruptcy is based on income and the means test. Any property that is not exempt by New York law can be seized and sold to pay creditors.
The second type of bankruptcy is called Chapter 13 bankruptcy. Chapter 13 bankruptcy is required if the individual or business can repay some debts. Certain types of debt, such as taxes, student loans, or child support cannot be discharged and will require you or your business to file for Chapter 13 bankruptcy in New York state.
Property exemptions are the largest difference between federal and New York state laws. In New York, your home is exempt property, or at least the first $75,000 to $150,000 of its value depending on the county. Personal property up to $10,000 is also exempt. To learn about other exemptions and the finer points of New York bankruptcy law, browse Business.com and visit the related links.
