You will not lose everything in bankruptcy

Too often, honest people drowning in debt will spend every second of their free time working to pay off their debts. Many times the debt is so bad that these people will actually get sick from working so hard to pay them off. Sadly, many of these same people even have sacrificed paying for health insurance because they wanted to do everything they can to catch up. When asked, “why didn’t you look into bankruptcy?” they frequently say that they don’t want to lose their house.

A home for their family is the most important thing for them, as it is for most of us. What these honest people do not realize is that most people interested in bankruptcy can keep their home and still walk away from their credit card debt, personal loans, re-possessed vehicle debt, and medical debts. In Ulster, Dutchess, and Orange counties of New York, a single person filing for chapter 7 bankruptcy can keep up to $137,950.00 of equity in their home. If filing with a spouse, this amount doubles to $275,900.00. This means if your house is worth $250,000 and you and your spouse still owe $50,000 on the mortgage, you can file for a chapter 7 bankruptcy without needing to worry about losing your house. The $200,000 of equity is exempt according to the law. Most people who file bankruptcy will be able to keep all of their property and belongings. If you are worried about losing property in a chapter 7 or 13 bankruptcy, schedule an appointment with George C. Selby, Esq., and Selby Legal will walk you through the process step by step.