Post: Increased NY Homestead Exemption: Drop 13, File 7?

Posted by Debitum on 6/25/06

Hi,
I'm an attorney who doesn't practice bankruptcy law. My
parents are in chapter 13 bankruptcy. (Don't ask!) They
live in New York and filed a chapter 13 a few months before
the new New York "Homestead Exemption Amendment" became
effective on August 30 2005. The old NY homestead exemption
was $10,000 per person and the new homestead exemption is
$50,000 per person. Under the new exemption scheme, my
parents have no non-exempt assets -- and can safely (I
believe) file a 7.

The original chapter 13 case was filed approximately a year
and a half ago. Can my parents voluntarily drop the chapter
13 and then IMMEDIATELY file a 7 (without a waiting period)?
Even if it's legally permissible to drop the 13 and
immediately file a 7, will my parents likely make the
bankruptcy judge mad by doing this?

It seems like it would be better to file a completely new
case, rather than "converting" from a 13 to a 7 -- so that
the filing date will be after the date of the New York
homestead exemption Amendment. Also, it will make things
"less messy" since it will be all new paperwork with no
carryovers from the original chapter 13 case. Do you agree
that its better to file a completely new case rather than
"convert" from a 13 to a 7.

Posts on this thread, including this one

Increased NY Homestead Exemption: Drop 13, File 7?, 6/25/06, by Debitum.

Re: Increased NY Homestead Exemption: Drop 13, File 7?, 8/09/07, by marie ausfeld.