filing in NYS - will I lose my property in another state or my IRA?

[Justaguest]

What is the name of your state?New York

 

[Justaguest]

I am considering filing bankruptcy in NYS. I own a building lot in another state (SC) and also have some money in an IRA. Will I lose either of these? TIA for any help.

 

[FlyingRon]

It would depend on which form of bankruptcy you are considering. Retirement accounts are usually safe from being used to satisfy our debts. The building lot is usually fair game for liquidation. When you are filing your case, you have to sit down (preferably with an attorney) and decide if the Federal or NY State protections are better for you. The Federal has broader exemptions, but some of the NY limits are higher (for example for tools of the trade or vehicles).

 

[adjusterjack]

Your IRA is safe.

The other property, maybe not. What kind of property? Any equity? Do you own a home in NY? Any equity in it?

 

[Justaguest]

Your IRA is safe.

The other property, maybe not. What kind of property? Any equity? Do you own a home in NY? Any equity in it?

It's a building lot that I own outright. I rent in NY.

 

[FlyingRon]

It's almost certainly fair game for the creditors. Equity in your principal residence is protected under NY and Federal law to various extents, but not places you aren't living.

 

[Justaguest]

It's almost certainly fair game for the creditors. Equity in your principal residence is protected under NY and Federal law to various extents, but not places you aren't living.

Thanks so much for your answer. I think I've decided against it.

 

[LdiJ]

Thanks so much for your answer. I think I've decided against it.

Part of what you consider is what is the building lot really worth? If its one of those lots that were sold at potential resorts and the resort has not seriously taken off, then its not really worth considering. If its a building lot that is worth serious money, then it might be in your best interest to simply sell it and pay off your debts. If it's something that is starting to be worth serious money, but will be worth seriously more in the next 5-10 years then maybe its worth avoiding bankruptcy for as long as possible...but then eventually selling the lot and paying off debts rather than actually filing.

 

[Justaguest]

It's in an upscale golf community less than a mile from the ocean with no HOA fees, which is unheard of in that area. It would definitely be worth selling in the future when things pick back up. Thanks again.

 

[LdiJ]

It's in an upscale golf community less than a mile from the ocean with no HOA fees, which is unheard of in that area. It would definitely be worth selling in the future when things pick back up. Thanks again.

Then my advice would be holding off as long as possible and selling it prior to filing any bankruptcy. The bankruptcy trustee will definitely sell it to put towards your debts and you likely can do better selling it yourself.

 

[Justaguest]

Thank you, that's exactly what I'm going to do.

 

[zddoodah]

I am considering filing bankruptcy in NYS. I own a building lot in another state (SC) and also have some money in an IRA. Will I lose either of these?

The money in the IRA is likely exempt, but how could we otherwise have the slightest idea?

Even if you had told us whether you're going to file under Ch. 7 or Ch. 13 (or some other Chapter), one would have to be fully informed about your financial situation to answer this question intelligently. Obviously, this is something you should discuss with your bankruptcy attorney.