The Homestead Exemption for Bankruptcy

Friday, August 12th, 2016, 10:32 pm

When filing for bankruptcy in New York, you will be introduced to a number of exemptions that you may qualify for. These exemptions allow you to keep belongings and assets protected underneath them, but when you don’t have a law degree, they can be confusing to understand. One of the exemptions you may be curious about is the Homestead Exemption.

What is the Homestead Exemption?

The Homestead Exemption comes into play when you are filing for bankruptcy but you have equity in your home, or you owe less than the home is worth. Whether you’re filing for Chapter 13 or Chapter 7 bankruptcy, the Homestead Exemption allows you to make the equity in your home exempt, protecting it from your trustees and permitting you to stay in your home.

Whether or not you qualify for the Homestead Exemption in Brooklyn depends on if the pre-determined exemption amount is greater than your equity in the home. To determine how much your exemption amount is, you’ll need to look at the specific limits for each county.

Whether or not you qualify for the Homestead Exemption in Brooklyn depends on if the pre-determined exemption amount is greater than your equity in the home. To determine how much your exemption amount is, you’ll need to look at the specific limits for each county.

 

Homestead Exemption Amounts for Brooklyn

 

If you are filing bankruptcy in or around New York City, the exemption amounts for Kings, Queens, New York, Bronx Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam counties tops of at $165,500. If you are a married couple, you get double the exemption limit. This means that a married couple in the same counties will receive a $331,100 limit for exemption.

 

When Can I Use the Homestead Exemption?

 

The Homestead Exemption can apply to different kinds of homes, including houses, apartments, condos, co-ops, or even mobile homes. But there are some national rules around when the Homestead Exemption can come into effect. To use the Homestead Exemption when filing for bankruptcy, you must have owned the home for at least 40 months before filing. Individuals who do not meet this time requirement may have different exemption amounts.

 

If you qualify to receive the Homestead Exemption, it will automatically be applied to your bankruptcy file in New York and you do not need to take extra measures to declare.

 

If you are facing bankruptcy, you’ll want to ensure you are taking advantage of all the exemptions and protections available to you. A qualified bankruptcy attorney at Michael F. Kanzer & Associates P.C. can help you through the entire bankruptcy process. Contact our Brooklyn law office at 718-769-7200 to get started.

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