NY HOmestead Exemption Increased

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N.Y. State passes increase in homestead exemption for individuals

Daily Record (Rochester, NY), Sep 14, 2005 by Daily Record Staff

For the first time since 1977, the State of New York has updated the homestead exemption for individuals who are filing bankruptcy. A provision to increase the homestead exemption from $10,000 per person to $50,000 per person was signed into law Aug. 30, and became effective immediately.

The homestead exemption means that creditors cannot place a civil judgment against the exempt equity in a debtor’s home. In a bankruptcy, the homestead exemption protects equity in the debtor’s home from creditors.

Exemptions allow individuals who are filing bankruptcy to keep a bare minimum of property that is essential to their daily lives, said Jeffrey Freedman, senior partner, Jeffrey Freedman Attorneys at Law. Until now, if a married couple were filing bankruptcy, only $20,000 of the equity they had in their home would be exempt – now $100,000 of that equity will be exempt.

The change, which was proposed by state Senator Vincent L. Leibell, III, was passed unanimously by both the Senate and the Assembly. It is a much more realistic figure in today’s market, according to Freedman.

For many people the previous exemption was like having no exemption, he said. The purpose of exemptions is to help debtors get a fresh start, maintain their dignity, and have the basics they need to build a new life.

At the previous level, the majority of people filing bankruptcy were in danger of losing their homes because creditors could file judgments against any equity over and above the $10,000 per person, Freedman added

The homestead exemption applies to houses, condominiums and mobile homes where the client resides. Each state sets its own criteria for exemptions.

6 Responses

  1. b davis,

    Thank you for posting the emergency motion of debtor hearing the other day.I found the same in mine with NOD being filed and recorded months before the granting of substitution of Trustee. Excellent work on posting that..

    Foreclosed and living nearby you in Lake Elsinore. I’m still looking for an attorney going after the fraud. I have now found forgeries, notary fraud, and more fraud upon the court in my own unlawful detainer recordings but still can’t find a lawyer. Any recommendations that you know of?

  2. I thought that BK is federal, how does the state determine federal laws?

  3. Well, the new law in New York is a good start. We need, however, to bring back Glass Steagall which was enacted after the banks helped to cause the Great Depression. We are going to get more of the same from the banks if we do not enact a law that keeps them under control.

  4. This is a very important topic. I did not know about the term Homestead Exemption. I wonder how many homeowners know about this law?

    This is still a weak law for people who have paid off their home but evicted because they fell behind on their water bill. Although 50 grand is better than nothing, the problem is the home can always be resold for just a fraction of what it was worth, negating the built up equity and putting the evicted homeowner further in debt.

    Wouldn’t it be interesting if homeowners could place an auto bid on their own foreclosed home up to the value of their own built up home equity.

  5. PAGE 12 CALIFORNIA ACKNOWLEDGEMENT OF JUDICIALLY NOTICED REAL ESTATE CALIFORNIA COUNTY OF RIVERSIDE DOCUMENTS.

    ROBERT IS HE NOT SHE AND HER. THE DAY SHOULD BE THE SAME AS THE DAY SIGNED.

    http://www.scribd.com/doc/45913530/CERTIFIED-TITLE-RECORDS-REQUESTED-AS-JUDICIALLY-NOTICED-RJN-UAMC-UAMCC-05-20-10

  6. THE INCREASE IS NEEDED TO SLOW THE THEFT OF ASSETS OF OUR PEOPLE.

    NOTARY ACKNOWLEDGMENTS IN CALIFORNIA. THEY MUST BE ACCURATE. THE GENDER MUST BE CIRCLED AND CORRECT. THE DATE ACKNOWLEDGED MUST BE THE SAME.

    MY CASE ANOTHER ERROR, NOT THE SAME DAY, AND ROBERT WAS CALLED HER AND SHE. THE RUSH WITH FLAGRANT ERRORS IS AMAZING.

    http://www.scribd.com/doc/45913290/NOTARY-ACKNOWLEDGEMENTS-MUST-BE-ACCURATE-AND-ON-THE-SAME-DAY-AS-SIGNED-CALIFORNIA-Notary-classes-acknowledgment-Form-2008

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