NY Gov. Paterson signs law to raise state debtor exemptions

[keepinitreal]

December 23, 2010

Gov. David Paterson has signed a law raising the value of home equity, household goods and vehicles debtors can shield against court judgments and in bankruptcy proceedings.

The law raises from $2,400 to $4,000 the exemption protecting one vehicle owned by an individual from claims in bankruptcy court. It establishes that protection for the first time against creditor claims in other court judgments.

It raises the $50,000 limit on protected home equity to between $75,000 and $150,000 depending on where the debtor lives.

New York City officials opposed the measure, saying it impairs their ability to tow and auction cars for outstanding parking violations.

Paterson vetoed legislation broadening prevailing wage requirements for contract service workers at public agencies.

http://www.nypost.com/p/news/local/gov_paterson_signs_law_to_raise_YoCsx2JD4gGWdLRY3Wv24K#ixzz18yxaBB4X

[HHM]

That is good. In Colorado, they only review exemptions every 6 years, we still have another year or 2 before there will be a review.

[df04527]

Interesting.... how do you find that out for other states?

[RichM]

I first met David Paterson about 25 years ago, give or take, and I've always liked him. We're pretty far apart politically, but he's a genuinely decent man with a kick-ass sense of humor. I also think he's been a better governor than most people give him credit for (and certainly better than the sleazebag waiting in the wings).

These increases were long overdue considering the costs of living in New York. Based on the timing, I reckon that incoming governor Cuomo may have indicated that he had no intentions of raising the limits, and so David decided to do it himself.

-Rich

[ben1381]

I just read the text of the law and it appears to do several more things.
1.Make New York a state that allows a choice of state or federal exemptions
2. raise exemption for jewelry from $35 to $1000
3. raise exemption for animals from $450 to $1000
4.several other examples
Here is a link to the bill.

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

[jacko]

In Minnesota, the Homestead exemption is $360,000 and the vehicle one is $4400. I could never understand why auto exemptions are so low.

December 23, 2010

Gov. David Paterson has signed a law raising the value of home equity, household goods and vehicles debtors can shield against court judgments and in bankruptcy proceedings.

The law raises from $2,400 to $4,000 the exemption protecting one vehicle owned by an individual from claims in bankruptcy court. It establishes that protection for the first time against creditor claims in other court judgments.

It raises the $50,000 limit on protected home equity to between $75,000 and $150,000 depending on where the debtor lives.

New York City officials opposed the measure, saying it impairs their ability to tow and auction cars for outstanding parking violations.

Paterson vetoed legislation broadening prevailing wage requirements for contract service workers at public agencies.

http://www.nypost.com/p/news/local/g...#ixzz18yxaBB4X

[tmk824]

I know this is a few weeks after the release of the news, but I was not a member of this forum until yesterday. I am a young attorney in New York and started a bankruptcy group at my practice and many of our initial consultations always had an issue with how low the Homestead Exemption was. Governor Paterson really did a great thing here and I appreciate it as many of my clients got hung up on that old number. The new law also allows a couple filing jointly to pool their exempttion up to $300,000 in the Counties all of my clients reside in. Also renters and those who don't take the homestead exemption can claim another $1,000 in personal property or cash. Also this forum is incredible and I am happy to have become a member as the wealth of experience and ideas on this site seem to be endless.