Chapter 7 Exemptions - Car - New York State

The New York State exemption for cars is $2,400. This is a relatively low amount which has not changed in over 20 years.

The major variable as to what will happen to your car is the trustee who is appointed to your case -- something which you have no control over.

Some trustees are very particular and will seek to go after almost any asset, no matter how small. Other trustees are much more "reasonable" and will not be bothered by realatively small assets.

It is very rare for any trustee to go after an asset where the non-exempt value is less than $1,000.

You are entitled to the first $2,400 of equity. That means that if a trustee could sell the vehicle for only $3,000, he would have to give you the first $2,400, which is your exemption. That leaves very little money for the bankruptcy estate -- so little that the trustee would not bother.

The more money the trustee can bring in, the more likely he would seek to sell the vehicle.

Most trustees would rather negotiate a settlement than take a non-exempt asset.

You should also immediately review what the likely liquidation value is for the vehicle, which is what the trustee will use to decide what to do.

For mor info as to how bankruptcy applies to residents of New York State, please see my bankruptcy blog or bankruptcy web site by clicking the blue links below:
.