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Legislature called back into session: Bankruptcy Exemption bill change may be enacted

Ever since early August, the New York bill updating and expanding bankruptcy and judgment debtor exemptions in new York has been on hold (see Blogs Aug. 13 & Aug. 18). As previously reported, New York City objected to the motor vehicle exemption being applied to municipalities that tow cars to enforce parking tickets. The State Senate passed S. 8451, to correct the problem on August 4, but the Assembly has not been in session since then.

Two days ago, Governor Patterson called for a special session of the state legislature starting Monday November 29. This will be an opportunity for the Assembly to pass S. 8451 (or its identical twin, A. 11677), and then both S. 8451 and the original exemption bill, S. 7034, can be sent to Governor Patterson for his signature. The bill must be enacted by December 31; if not, it expires along with the current term of the state legislature.

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