Since your daughter is unable to pay the debt, she may want to consider a chapter 7
bankruptcy. I will explain.
As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13
. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.
A Chapter 7 bankruptcy could discharge (erase) all of her unsecured debt such as credit cards, medical bills, judgments and personal loans. It would be an opportunity for a fresh financial start. A Chapter 7 requires that she surrender assets, if any, that exceed her exemption. However if she does not have any nonexempt assets, she would lose only your debts
A Chapter 13 bankruptcy is a repayment plan
for an individual. It may require that your daughter repay some of her unsecured credit card debt
over a 3 -5 year period. However, she may retain assets that exceed her exemption.
Here are the exemptions for New York:
I think this is what you wanted to know. Please let me know if I have answered your question