Author: Andrew M. Thaler

The American Dream is to own your home.   A home is where the heart is and most likely that person’s most cherished possession.  The prospect of losing a home to judgment creditors or a bank holding a mortgage can be a homeowner’s worst nightmare.

The good news is, in contrast with the $10,000 homestead exemption that existed 24 years ago, the New York State legislature has over time dramatically increased the “homestead exemption” available to homeowners that reside in their property.
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A homestead exemption is the amount of money protected from the reach of judgment creditors over and above consensual liens (such as mortgages and home equity loans) and statutory liens (generally tax liens) in an involuntary sale.  Prior to 1994 the New York homestead exemption was only $10,000. That was hardly enough money to purchase a new home or even pay rent for more than a few months.  In 1994 the homestead exemption was increased to $50,000.  Thereafter, the homestead exemption for persons living in NYC and the surrounding Metropolitan counties, was dramatically increased to $150,000 with adjustments to be made to that amount every three years.  The last adjustment was made in 2018. As of September 2018 the homestead exemption for Metropolitan New York counties is $170,825.  (Upstate counties have lower amounts).

​​Author: Andrew M. Thaler
 
The filing of bankruptcy by an individual’s employer can have significant consequences to the employee.
The employee should takes certain steps to enhance the likelihood of receiving compensation for the moneys owed to them for wages, benefits etc. Below is a checklist of items to consider.

​Author: Andrew M. Thaler
 
Individuals often seek chapter 7 bankruptcy relief to obtain a “fresh start” to discharge debts they have difficulty satisfying.  In most chapter 7 cases “eligible” debtors discharge most if not all of their debts and keep most if not all of their property. If they do not properly plan however, they could be shut out of chapter 7, where debts can be discharged in as little as 3 months.  Instead, the only alternative may be a choice between a chapter 13 bankruptcy (where creditors are paid all or a portion of their debts from the debtor’s future income over three to five years), or not filing at all.  As soon as financial trouble appears on the horizon it is critical to consult with a qualified bankruptcy professional so proper planning can occur.
 
Timing comes into play in numerous aspects of bankruptcy planning.  One example is in application of the “Means Test” for debtors with consumer debt.  

​Author: Andrew M. Thaler

​When a debtor files for bankruptcy the debtor is permitted to exempt certain assets from the reach of creditors and a bankruptcy trustee.  Personal injury awards can be exempted in whole or part. In New York a debtor has the choice of selecting either a federal or state exemption scheme.  The debtor must select one or the other.  There is no picking and choosing between the specifics of the two (e.g. a debtor cannot elect the homestead exemption of New York law while also applying the wildcard exemption of Federal law). Therefore, an analysis by a qualified bankruptcy attorney needs to be performed to ascertain which scheme best suits the debtor circumstances.
 
As of the writing of this article (Jan 2018) the federal personal injury exemption is $23,675. That exemption can potentially be enhanced by a supplemental wild card exemption of up to as much as an additional $13,100 for a total exemption of $36,775.   The New York personal injury exemption is $8,275. 
 

​The United States Supreme Court has granted Certiorari in three bankruptcy cases this term.
 
In Lamar, Archer & Cofrin v. Appling the court will resolve a split of circuits and decide whether  a false oral statement about one asset is a statement of “financial condition” that must be in writing to result in denial of discharge of debt under Bankruptcy Code Section 523(a)(2).
 
In Merit Management Group LP v.  FTI Consulting Inc. the court will deal with the safe harbor provisions of Section 546(e).
 
In U.S. Bank NA v. The Village at Lakeridge LLC the court will prescribe the standard of appellate review for non-statutory insider status.