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Category Archives: Chapters 7 & 13

Failure to file bankruptcy petition in time leads to sale of couple’s house in foreclosure

New York Judge rules to uphold the sale of a New York couple’s home even though the couple filed for bankruptcy relief and protection. The New York Law Journal reported in an October 12th, 2012 article that the couple filed for bankruptcy only hours after their home was foreclosed upon, yet the court would not vacate the sale.

The couple filed for a Chapter 13 bankruptcy in the afternoon of July 5, 2012 believing that their home was slated to be sold in a foreclosure sale on July 9. Unfortunately, the couple was mistaken and the home was sold on the morning of the 5th while the couple was completing the bankruptcy paperwork.

Upon learning of their home’s sale, the couple petitioned the District Bankruptcy Court seeking for the sale to be vacated on two grounds. The first was that the property was the primary residences of the couple and that under bankruptcy laws the property was protected from creditors once the bankruptcy petition was filed. The second ground was that the home was estimated to be worth roughly $125,000 yet was sold for $66,000. The couple argued that the lower amount was grossly low compared to the property’s value and therefore, should be void and vacated.

The judge ruled against the couple staying that the since the petition had not yet been filed the property was not protected at the time of the sale. Furthermore, the property sold for around 50% of its estimated fair market value which is seen to be lawful. The judge reasoned that only property sales where the property sold for around 10% of their value were found to be unlawful. Based on this reasoning the judge ruled that the property sale shall be upheld.

Jayson Lutzky has over 29 years of experience. If you are considering bankruptcy, call us today at (800) 660-LAWYER(5299) to set up a free initial consultation. You can also visit us on the web at www.BankruptcyNYC.com.

Bronx bankruptcy attorney comments on company’s inability to remove stay on New York couple

A 2007 judgment allowed Beach Lane Management Inc. a judgment against a New York couple. According to an October 3rd, 2012 New York Law Journal article the court further granted the Beach Company the right to seek compliance from the couple. In 2011 the Beach Company sought compliance from the couple through a contempt order.…Continue Reading

Failure to provide all of the information leads the court to deny New York woman’s bankruptcy

A New York Bankruptcy judge denied a woman’s petition for bankruptcy after finding that there were numerous inaccuracies in the application, as reported by the New York Law Journal in a September 17th, 2012 article. The woman sought relief through a Chapter 7 bankruptcy but the court found that she failed to list all of…Continue Reading

Advantages of Chapter 13 bankruptcy filing

There are several advantages to filing for a Chapter 13 bankruptcy rather than a Chapter 7. One of the main advantages is for those individuals whose property is close to foreclosure.  Filing for a Chapter 13 bankruptcy helps save the property from being foreclosed, however, mortgage payments must still be paid. Another significant advantage to…Continue Reading

Bronx bankruptcy attorney comments on corporation defaulting on second major loan

Integrated Sensors Inc. defaulted on two major secure loans, causing their director to seek a Chapter 7 bankruptcy, as reported by a New York Law Journal article published August 13th, 2012. The secure loans were held by Economic Development Growth Enterprises Corp. (EDGE) and Utica Industrial Development Corp. (UIDC), both of the loan holders sought…Continue Reading

Chapter 7 assets general guidelines of what is allowed and not allowed to be liquated

Federal laws govern the process and procedures of all bankruptcies, however many states provide their own exemptions. For example in New York bankruptcy petitions, the debtor may decide in Chapter 7 petitions whether to follow state or federal asset exemption guidelines. Many individuals are unaware of the laws surrounding their assets when they file for…Continue Reading

The role of a Trustee in a Chapter 7 bankruptcy

A Trustees play a very important role in Chapter 7 bankruptcies, they essential act as judges for bankruptcy petitions. Once a bankruptcy is filed a Trustee is assigned to the case to review the terms filed.  Trustee must uphold all of the federal bankruptcy laws while reviewing each individual debtor’s case. Their main duty is…Continue Reading

Filing a Chapter 7 bankruptcy

The filing for a Chapter 7 bankruptcy may appear scary or intimating to some individuals. That’s why it is so important for a person to fully under the process. After the debtor’s attorney has collected all the required documents from the debtor and the debtor has completed a mandatory pre-filing educational class, then the debtor’s…Continue Reading

Bankruptcy lawyer discusses some general information regarding a Chapter 7 bankruptcy

Many individuals file for Chapter 7 bankruptcy. This type of bankruptcy is creates a fresh start for the debtor by discharging their all of their debt through liquidation. Upon filing for a Chapter 7 bankruptcy a bankruptcy court reviews the individual’s finances. The bankruptcy trustee then compares the debtor’s assets and income to their liabilities.…Continue Reading

Olympic bankruptcy

At least two families of Olympic athletes are filing for bankruptcy, according to the New York Times in an August 8, 2012 article. Studies show that the biggest predictors of bankruptcy are medical problems and unemployment. Contrary to popular belief, it is not overspending. Gymnast Gabby Douglas’ mother has recently filled bankruptcy. She is a…Continue Reading

Large bankrupt New York law firm asks ex-partners for $104 million

A July 11, 2012 Thomson Reuters article discussed the reasons and conditions for the $103.6 million request by bankrupt law firm Dewey & LeBoeuf. The firm is the largest U.S. law firm to declare bankruptcy. It also had offices worldwide. In May, it filed for Chapter 11 bankruptcy. The chief restructuring officer held a meeting…Continue Reading

Bronx foreclosure defense law firm shares news about a bank fraud case: former chairman of mortgage firm sentenced to 30 years

Lee B. Farkas, former chairman of mortgage firm Taylor, Bean & Whitaker, is being sentenced to 30 years in prison for bank fraud, The New York Times reports. “Former Chairman of Mortgage Firm Sentenced to 30 years in Bank Fraud,” The New York Times, Friday, July 1, 2011. Mr. Farkas was accused in federal court…Continue Reading