New York Bankruptcy Laws, Exempt Value, Equity Property, Real Estate Liens
Civil Practice Law & Rules Section 5206 (e) pertains to the sale of a homestead in New York bankruptcy
proceedings when exceeding ten thousand dollars in
value. A judgment creditor may commence a special proceeding in the county in which the homestead is located against
the judgment debtor for the sale, by a sheriff or receiver, of a homestead exceeding ten thousand dollars
in value. The court may direct that the notice of petition be served upon any other person. The court, if it directs
such a sale, shall so marshal the proceeds of the sale that the right and interest of each person in the proceeds shall
correspond as nearly as may be to his right and interest in the property sold. Money, not exceeding ten thousand
dollars, paid to a judgment debtor, as representing his interest in the proceeds, is exempt for one year after the
payment, unless, before the expiration of the year, he acquires an exempt homestead, in which case, the exemption ceases
with respect to so much of the money as was not expended for the purchase of that property; and the exemption of the
property so acquired extends to every debt against which the property sold was exempt. In a New York
bankruptcy case, when the exemption of property sold as prescribed in this subdivision has been continued after the
judgment debtor's death, or where he dies after the sale and before payment to him of his portion of the proceeds of
the sale, the court may direct that portion of the proceeds which represents his interest be invested for the benefit
of the person or persons entitled to the benefit of the exemption, or be otherwise disposed of as justice requires.
New York Bankruptcy Laws
The sufficiency of consideration for a sale is subject to scrutiny by New York bankruptcy courts. In
particular, courts are wary of all sales to insiders in the one year before and during the pendency of all
cases.
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.
Back to New York Bankruptcy Laws content page.
|
