New York Bankruptcy Guide 2026
This content is for informational purposes only and does not constitute legal advice. Consult a licensed New York attorney for advice specific to your situation.
Filing for bankruptcy in New York can help you get a fresh financial start. This guide covers everything you need to know about Chapter 7 and Chapter 13 bankruptcy in New York courts.
Quick Facts: Bankruptcy in New York
| Requirement | Details | |
|---|---|---|
| Residency | Must live in New York for at least 91 of the last 180 days | |
| Where to File | U.S. Bankruptcy Court for your district | |
| Filing Fee | Chapter 7: $338 | Chapter 13: $313 |
| Credit Counseling | Required within 180 days before filing | |
| Means Test | Required to qualify for Chapter 7 | |
| Exemptions | New York allows state exemptions |
Types of Bankruptcy in New York
Chapter 7 Bankruptcy
What it is: Chapter 7 is a "liquidation" bankruptcy that eliminates most unsecured debts in about 4-6 months.
Best for:
- People with little to no assets
- Those whose income is below the New York median
- People who want a fresh start quickly
What happens:
- A trustee may sell non-exempt assets to pay creditors
- Most unsecured debts are discharged (eliminated)
- You keep exempt property
Chapter 13 Bankruptcy
What it is: Chapter 13 is a "reorganization" bankruptcy that sets up a 3-5 year repayment plan.
Best for:
- People with regular income
- Those who want to keep their home or car
- People who don't qualify for Chapter 7
What happens:
- You keep all your property
- You make monthly payments to a trustee
- Remaining debts are discharged after completing the plan
Do You Qualify for Chapter 7 in New York?
The Means Test
To file Chapter 7 in New York, your income must be below the New York median income OR you must pass the "means test" calculation.
New York Median Income (2024):
| Household Size | Annual Income |
|---|---|
| 1 person | $69,914 |
| 2 people | $87,458 |
| 3 people | $106,252 |
| 4 people | $127,054 |
| Each additional | +$9,900 |
If your income is BELOW these numbers: You likely qualify for Chapter 7.
If your income is ABOVE these numbers: You must complete the means test calculation (Form 122A-2). If you have little to no disposable income after expenses, you may still qualify.
Who Cannot File Chapter 7
- Filed Chapter 7 in the last 8 years
- Filed Chapter 13 in the last 6 years
- Recent bankruptcy dismissal within 180 days
- Attempting to defraud creditors
What Property Can You Keep in New York?
New York allows you to use state exemptions under NY CPLR § 5205 and NY Debtors & Creditors Law.
Key New York Exemptions
| Property | Exemption Amount |
|---|---|
| Homestead | Up to $179,925 in equity in primary residence (NY City); $149,925 (suburbs); $89,925 (upstate) |
| Motor Vehicle | Up to $4,550 in one vehicle |
| Household Goods | Necessary furniture, appliances, clothing (reasonable value) |
| Tools of Trade | Up to $3,600 in tools, books, implements |
| Jewelry | Wedding rings (no dollar limit) |
| Cash/Securities | Up to $1,450 total |
| Life Insurance | Proceeds payable to spouse or child |
| Retirement Accounts | 401(k), IRA, pension (generally fully exempt) |
| Public Benefits | Social Security, unemployment, veterans benefits |
| Alimony/Child Support | Reasonably necessary for support |
| Personal Injury Recovery | Up to $9,100 |
The Filing Process: Step by Step
Step 1: Complete Credit Counseling
Before you can file, you must complete a credit counseling course.
- Where: Approved agencies at justice.gov/ust/eo/bapcpa/ccde
- Cost: $0-$50 (fee waivers available)
- Format: Online, phone, or in person
- Timing: Within 180 days BEFORE filing
Step 2: Gather Documents
Collect:
- Last 6 months of pay stubs
- Last 2 years of tax returns
- Bank statements for all accounts
- List of all debts (names, addresses, amounts)
- List of all assets
- Vehicle titles and registrations
- Mortgage statements
Step 3: Complete Bankruptcy Forms
Required forms:
- Voluntary Petition (Form B 101)
- Schedules A/B through J
- Statement of Financial Affairs (Form B 107)
- Means Test forms (B 122A-1, B 122A-2 if needed)
- Statement of Intention (Form B 113)
Step 4: File Your Petition
Where to file:
Southern District (Manhattan, Brooklyn, Staten Island, Long Island):
- 300 Cadman Plaza East, Brooklyn, NY 11201
- Phone: (347) 564-3600
Eastern District (Nassau, Suffolk, Queens):
- 300 Cadman Plaza East, Brooklyn, NY 11201
Northern District (Upstate):
- 445 Broadway, Albany, NY 12207
- James Hanley Federal Building, Syracuse
Western District (Buffalo, Rochester):
- 68 Court Street, Buffalo, NY 14202
Filing fee:
- Chapter 7: $338
- Chapter 13: $313
- Fee waiver applications available (Form B 103B)
Step 5: Attend the 341 Meeting
When: 3-6 weeks after filing
What to bring:
- Photo ID
- Social Security card
- Bank statements
- Tax returns
- Pay stubs
What happens:
- Trustee reviews your paperwork
- Asks questions about your finances
- Creditors may attend (rarely do)
Step 6: Complete Debtor Education
Required for discharge:
- Must complete AFTER filing
- Find approved provider at justice.gov/ust/eo/bapcpa/ccde
- File certificate with court
Step 7: Receive Your Discharge
When: 60-90 days after 341 meeting
What it means:
- Most unsecured debts eliminated
- Creditors cannot pursue you
- Fresh financial start
What Debts Are NOT Discharged?
Bankruptcy does NOT eliminate:
- Student loans (except in rare hardship cases)
- Recent taxes (last 3 years)
- Child support and alimony
- Debts from fraud
- Intentional injury debts
- Criminal fines and restitution
- Debts not listed in bankruptcy
Legal Aid Resources in New York
| Organization | Phone | Services |
|---|---|---|
| The Legal Aid Society | (212) 577-3300 | Free bankruptcy help for low-income NYC |
| Legal Services NYC | (212) 431-7200 | Civil legal aid all 5 boroughs |
| Legal Aid of Western NY | (585) 325-2520 | Rochester, Buffalo area |
| NY Bar Lawyer Referral | (212) 626-7373 | Low-cost consultations |
Next Steps
- Complete credit counseling — justice.gov/ust/eo/bapcpa/ccde
- Gather your documents — pay stubs, tax returns, debt list
- Consider your options — Chapter 7 vs. Chapter 13
- Consult an attorney — especially if you have significant assets
- File your petition — at the appropriate district court
Get New York Bankruptcy Documents
jurisdiction-correct New York bankruptcy documents from Jurist-Diction include Chapter 7 and Chapter 13 templates — starting at $97.
Templates are for informational purposes only and do not constitute legal advice. For legal advice, contact a licensed New York attorney or The Legal Aid Society at (212) 577-3300.