It is commonly asked by prospective bankruptcy clients if they will be able to keep their primary residence while filing a Chapter 7 or in the alternative whether they need to do a Chapter 13 to accomplish the same. So much depends upon the value of the property, the mortgage payoff(s), and the exemption permissible under the law. If you live in New York City and many of the surrounding counties, you are allowed what is known as a homestead exemption.
The exemption was increased from $50,000 to $150,000, effective January 21, 2011. The law also provided for automatic adjustments based upon the Consumer Price Index every three years, starting with April 1, 2012. There was hardly a soul in the bankruptcy community who knew that the exemption was increased in 2012 to $157,600 and more recently increased to $165,500 as of April 1, 2015.Some trustees and even bankruptcy judges are still not yet familiar with these changes. It can make a world of difference in qualifying for a Chapter 7 or what you pay in a Chapter 13.
It pays to find an experienced attorney in the Bronx and Westchester community who knows the law. I guess the secret is out and we can’t make up for lost time .It is a matter of dollar and cents and SENSE.