My question involves bankruptcy in the state of: NY
Does it make sense to file bankruptcy if you are expecting a large personal injury settlement (100k+) and you have about 40k credit card debt over 10 cards?
I've read that you can exempt a small amount of a PI settlement in a bankruptcy - about 22k + possibly another 11k or so. This would leave a lot of it (40k) potentially applicable to the 40k debt right?
Does it make more sense to negotiate with each creditor/collection agency (many are getting close to SOL anyway and a couple that filed a lawsuit have been dismissed with prejudice) and go about it this way as opposed to having to pay out for sure so much money at one time?
I'm thinking this option is better and is the way I have been proceeding but I don't understand the full law or have experience with B. and am looking for feedback. Some have told me, oh he should file for bankruptcy and this doesn't make sense on the surface to me.
Thanks in advance.
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OK, I just while posting this decided to go through it and it seems to my surprise that all of the debt has exceeded the SOL. So my understanding is he most likely can't be successfully sued for this if the judge is informed that the debt is beyond the SOL. So it seems to me bankruptcy as an option is out unless I'm missing something.

