Will I lose my home?
Not necessarily. In New York, we have something called the “homestead exemption.” If you own real estate that is your primary residence, a certain amount of equity may be off limits to many kinds of creditors. In the lower counties of New York, the amount of that exemption is $150,000 per person in title. Generally speaking, if you have been paying your mortgage in the ordinary course of business, and the market value of your property exceeds the amount of your mortgage (plus any other liens and encumbrances) by less than the homestead exemption amount, then you may be able to keep your home. Navigating these dire financial circumstances is difficult for even the most ardent of homeowners, and families are highly encouraged to seek a bankruptcy lawyer. White Plains residents—don’t wait to hold onto your home. Give us a call today.
Will Bankruptcy Destroy My Credit?
Many people are surprised to find that their ability to obtain credit is many times not any worse after they have filed bankruptcy; sometimes it is even better. How is this possible? If you have been late paying your credit cards, mortgage, or any other creditor that sends reports to credit reporting companies, the chances are that your credit score is already suffering. Those creditors will continue to report delinquencies until those debts somehow come to end. A bankruptcy filing is one way to put an end to the continued reporting. It is true that the bankruptcy filing can stay on your credit report for up to 10 years; however, many people who file bankruptcy are able to obtain credit, such as credit cards, after they file. One of the reasons for this is that the lenders know that you cannot obtain another bankruptcy discharge again so quickly – it will be a number of years before you can obtain another bankruptcy discharge. If you take a credit card, and pay it on time every pay cycle, you may be able to have “good credit” to be reported.