Major Changes to Bankruptcy in New York

Governor Paterson today signed a bill that would allow people filing Chapter 7 Bankruptcy in New York to keep considerably more assets.  Amount the changes are the following:

The tools of the trade exemption has been increased from $600 to $3,000

Motor Vehicle exemption has been increased from $2,400 to $4,000

If the motor vehicle has been equipped for a disabled person, then $10,000

The exemption for a home, known as the homestead exemption has been increased from $50,000 to as much as $150,000, depending on the county you reside in.

If you are not using the homestead exemption, you get an exemption of $10,000 towards cash and or personal property.  The amount of this exemption used to be $5,000

You have a choice to use the federal exemptions instead of the New York exemptions.  Depending upon your circumstances, using the federal exemptions may be beneficial.

These new rules go into effect on January 22, 2011.

To view the actual new law:

  http://assembly.state.ny.us/leg/?default_fld=&bn=A08735%09%09&Summary=Y&Text=Y

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