New York Bankruptcy Laws, Real Estate Value, Apprasial, Market Liquidation
11 U.S.C. Section 522(d): "The following property may be exempted under subsection (b)(1) of this section:
(1) The debtor's aggregate interest, not to exceed $16,150 in value, in real property or personal property
that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the
debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent
of the debtor."
Value allowed is determined by equity, based upon a fair market price which may be received by a
non-professional seller in the open market. The full text of 11 U.S.C. 522 -
federal bankruptcy statutes -
is available online through the Cornell University Law School. Values are an opinion based upon subjective analysis,
and therefore provide fertile ground for objections filed by trustees, creditors, and parties in interest. In
the event of disputed value, after notice and hearing, the court determines a "reasonable value."
In recent years, it seems many New York bankruptcy laws
and traditions have been under strict scrutiny. In general, the trend is
to limit individual rights while expanding the rights of corporations
who file Ch. 11. In NY State, approximately 98% of all cases are filed
for individuals under Chapter 7 & 13, while Ch. 11 cases account for
approximately 2% of all cases.
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