Friday, December 24, 2010

Merry Christmas says Santa Paterson - Governor increases Bankruptcy Homestead Exemption

Long Islanders filing bankruptcy can now protect $150,000 for individuals and $300,000 for couples in home equity if they file for bankruptcy. This is in contrast to the $50,000 and $100,000 previously available. This is a huge change and a huge chance for a fresh start for many homeowners with equity. If you haven't considered bankruptcy because your house has a lot of equity, but you are otherwise strapped with bundles of credit card debt, this one is for you. Thank you Santa Paterson.

To read the law, click here.

Also, for all you contractors out there, the new law also increases the exemption from bankruptcy for tools of the trade from $600 to $3,000. So, now you can keep working after a bankruptcy with your tools by your side.