A previous post on this blog overviewed how bankruptcy exemptions work to help a Rockland, New York resident who is struggling with debt keep some of his or her property even after going through a bankruptcy. These exemptions are very important to Garnerville and Rockland County residents, as they enable a person to get a fresh financial start without winding up destitute.
Bankruptcy exemptions can be difficult to apply to a particular situation, and a mistake and doing so can be very costly, as it could mean a New Yorker finds that, although a piece of property could have been protected in the bankruptcy process, it is in fact subject to seizure by the trustee.
For those who know that financial difficulties are going to become impossible to manage in the future, it may be helpful to create an exemption plan, that is, a set of financial and legal steps one can take in order to keep as much property as possible following a bankruptcy. When done correctly, exemption planning is entirely legal, as it simply takes advantage of the law as it is written.
In this respect, our law office can help New York debtors with their exemption planning. We can evaluate their financial situations and where and how they hold their property. Once we do so, we may be able to suggest some transactions that legally and ethically allow them to keep as many of their assets as they can while going through bankruptcy. We do so first by helping a debtor decide whether to use New York's exemptions or those allowed under federal law, as residents of New York have a choice.