Search Results for: Exemption

In a prior post, we discussed how a New York debtor can protect property in a bankruptcy by using either New York State or federal bankruptcy exemptions. Both sets of exemptions get adjusted every three years. The adjusted New York State exemptions took effect on April 1, 2021, and any adjustments to the federal exemptions will take effect on April 1, 2022. The New York State Department of Financial Services makes Read More

Every three years, adjustments are made to the figures in the Bankruptcy Code based on changes to the consumer price index during that period. As noted about a year ago when New York State exemptions were updated, the federal bankruptcy exemptions will adjust on April 1, 2022. The debt limits in small business Chapter 11 cases (Subchapter V) and Chapter 13 cases will also be adjusted. The rising costs of consumer Read More

There’s an old saying that good things come to those who wait. In our previous post, we explained why you should not wait to address your debt. While this remains true, it’s possible you may be guided to wait as part of a comprehensive strategy planned by you and your attorney. Here are some examples of when you may benefit from waiting: 1. To Protect Assets In a bankruptcy case, assets are reviewed to determine Read More

In prior posts, I explained how the bankruptcy exemptions can be used to protect assets and how they periodically get updated. While New Yorkers can choose between state and federal exemptions to protect assets, sometimes people find themselves with assets that cannot be fully protected or can only be partially protected. This post will explain what that means and the practical implications. Bankruptcy is a tool Read More

For bankruptcy attorneys, it’s no secret that bankruptcy filings have dramatically decreased since the start of the pandemic. While we initially believed that it was merely a function of people not going out to see their attorneys (despite the rise of virtual meetings) or the closing of courts and therefore collections activity, the filings remained in decline. In fact, from April 1, 2020 until March 31, 2021, Read More

Over the past few weeks we discussed what may be taxable, how to eliminate taxes, and what happens to tax refunds in a bankruptcy. This post is going to address instances where a couple files a joint tax return, but only one spouse files for bankruptcy relief. First, let me remind you that it is possible for one spouse to file bankruptcy while the other does not. I will go into detail on how that works in a later Read More

Every year as we prepare our taxes we hope that we’re entitled to tax refunds. Most people view tax refunds as a bonus and get excited that they’re receiving money from the government. It’s not that simple. A tax refund is essentially the government paying you back for money you lent them over the past year. Sadly, you do not get interest on that loan. A tax refund is the difference between the taxes you had Read More

One of the biggest misconceptions is that if you file for bankruptcy relief you will lose your house and all your other assets. This is absolutely not the case. In fact, most Chapter 7 cases filed in New York are “no asset” cases, meaning that all assets are protected and will not be taken by a bankruptcy trustee and sold for the benefit of your creditors. Chapter 13 cases work differently, but typically assets are Read More