You’re thinking about filing Chapter 7 bankruptcy, but you’ve got property (either real estate or personal property) that you inherited. You’re concerned that you will lose it if you file for bankruptcy.
Fair enough. Simply put, the New York bankruptcy exemptions will apply to determine whether you will lose it. If the value falls within the statutory limits then you’re home-free; if not, then filing Chapter 7 bankruptcy will result in the loss of the property.
A few myths need to be dispelled about inherited property.
- It doesn’t matter if you bought the property or inherited it. It doesn’t matter if it was a gift or came to you through purchase. Once it’s yours, it’s yours.
- The item is considered to be yours even if you didn’t have title officially transferred to you.
- Filing Chapter 7 bankruptcy may impact the rights of any co-owners of inherited property. If there is a co-owner and you are required to surrender to the trustee, they will lose ownership as well (of course, the trustee will be required to pay them a share of the sale proceeds – so all is not lost).
- It doesn’t matter if you give back the inherited property before you file your case. In fact, it could be considered fraud to do so.
The good news is that there may be options for you. If the value is so high that you would be forced to surrender it in Chapter 7, you may want to look into Chapter 13. This will let you keep the inherited property but you will be required to pay back a portion of your debts over a 3-5 year period. You will need to figure out whether you qualify for Chapter 13 but, assuming you do, it may be a good option to consider.
It’s a thorny issue, to be sure. That’s exactly why you need to have a firm idea of the value of the inherited property before you meet with a lawyer to discuss your situation. Doing so will allow the attorney to assess your situation and help you decide whether filing Chapter 7 bankruptcy will spell trouble for any property you own.
Photo credit: crazysanman.history (via Flickr)
Check Out These Related Posts:
Hello,
This is Maria. I have seen your blog: http://www.newyorkbankruptcyhelp.com/ and I must say that I’m really impressed. Would you permit me to make a guest post in your blog? The article will be totally unique and written on finance, keeping the core subject of your blog in mind. In return, you too can do the same or else take a back-link(s) from my sites (I have many sites on finance). It would help both of us to increase our web presence and in return we both can increase our site’s ROI. I hope you will agree to this.
Please get back to me at my email id.
Waiting to hear a positive response from your end.
Regards,
Maria Smith