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New law eases bankruptcy limit

Gov. David A. Paterson

Gov. David A. Paterson Credit: AP File

Outgoing Gov. David A. Paterson signed a bill into law Thursday that at least one bankruptcy lawyer says will result in more Long Islanders filing for bankruptcy protection.

The bill increases the amount of exemptions in bankruptcy proceedings, such as the homestead exemption.

Woodbury bankruptcy attorney Craig Robins posted this on his blog early Friday morning:

“Right now each homeowner can protect only $50,000 worth of equity in a house. However, for those on Long Island who live in Nassau and Suffolk Counties, that amount will triple to $150,000.

Since a husband and wife can pool their exemption, that means that a couple will be able to protect a whopping $300,000 worth of equity in their home.

This will enable almost any typical Long Island middle class family to file bankruptcy to eliminate their credit card debts while protecting their home.”

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