David Scott Hamilton Bankruptcy Law Blog on Lawyers.com

People are rightfully concerned about will happen to their car if
they file for bankruptcy in New York City. When you file for
bankruptcy, a bankruptcy trustee will sell any nonexempt assets you
possess to pay creditors. HOWEVER, in New York State you have a $2,400
exemption amount for a car alone, as well as various other exemptions
(such as a $5,000 personal exemption). A good bankruptcy attorney will
be able to combine exemption amounts to give you the greatest possible
benefit. This way you don't lose the car (or other possessions). Most
people lose nothing.

This exemption DOUBLES if you file with your spouse and both of you
own the car, giving you anywhere from $4,800 to $14,800 protection for
your car.

But My Car Is Worth More than $10,000 and I Have Other Valuable Possessions!

That's fine! It just means Chapter 7 bankruptcy isn't right for you
if you want to keep your car. There are other bankruptcy options. If
you use Chapter 13 you can keep the car and simply pay off creditors
this way with less hassle. Exemptions are less of an issue in Chapter
13. As long as you make payments to creditors, you likely won't lose
anything.

How do I Calculate the Value of My Car?

The simplest way to do this is to get the Kelly Blue Book value of your car- see the link.

Once you have this value, you know what the actual car is worth. If
you are paying off the car, subtract whatever value you owe the finance
company too. It's quite likely you will have a negative value. That
means bankruptcy is extremely unlikely to affect your car and no
exemption will even be required.

For example, you have a 2005 Chrysler Town and Country worth
$13,000. You still owe the finance company $14,500. Really that means
you have no equity (-$1,500) in the car and almost certainly wouldn't
have to lose it in bankruptcy.

What If My Husband/Wife And I Have a Car Each?

It depends on who owns what (on the title of the car). Then see who
is filing for bankruptcy. If both, you can each use the $2,400
exemption. If only one of you, you may still only use one exemption per
person filing bankruptcy.