Legal Question in Bankruptcy in New York

Questions about exemptions

I was in a car accident in July 2002.I have not worked since. I have 4 credit cards that I have not been able to pay on since Novemeber, b/c of back injuries (from car accident). My questions are: My husband and I are both on the car note (payments are current), if I file for bankruptcy, is the car exempt? Also, I am in the process of suing the insurance co. of the motorist who totaled our car, if I recover any money,what would happen to that? The amounts on the creditcards are very small, and I was current before the accident. My name is not on the the house note.


Asked on 3/31/03, 6:42 pm

1 Answer from Attorneys
Debra Palazzo Law Offices of Debra Palazzo, LLC

Re: Questions about exemptions

Only $2400 in "equity" on the car is exempt. However you may be able to keep it by agreeing to keep making the payments. As for law suit, only $7500 is exempt not including pain & suffering. Since you only owe a small amount on credit cards and are current on car pymts why not try negotiating w/ credit card co.'s or consolidating debt instead of filing? Good Luck!

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Answered on 3/31/03, 9:20 pm


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