New York Bankruptcy Guide

Complete guide to filing bankruptcy in New York, including current median income requirements, New York's homestead exemption ranging from $189,050 to $283,575, bankruptcy court information, and how to find qualified bankruptcy attorneys in New York.

New York Median Income for Bankruptcy (2026)

To qualify for Chapter 7 bankruptcy in New York, your household income must be below these median income levels. If your income exceeds these amounts, you may still qualify through the means test or need to file Chapter 13 instead.

Household Size	Annual Median Income	Monthly Median Income
1 person	$64,894	$5,408
2 people	$82,125	$6,844
3 people	$94,953	$7,913
4 people	$114,691	$9,558
5 people	$123,691	$10,308
6 people	$132,691	$11,058

Note: For households larger than 4, add $9,000 per additional person. These figures are updated annually by the U.S. Trustee Program.

Calculate Your New York Eligibility

New York Bankruptcy Exemptions

New York filers can choose between New York state exemptions or federal bankruptcy exemptions. Many New York filers choose federal exemptions because they often provide better protection for personal property, though the state homestead exemption is higher in certain counties.

New York Homestead Exemption

$189,050 to $283,575 depending on county (New York State exemptions).

New York's homestead exemption varies by location:

• Counties outside NYC metro: $189,050
• Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, Putnam, Dutchess, and Orange counties: $283,575

Alternatively, you can choose federal exemptions which provide up to $27,900 in homestead protection ($55,800 for married couples filing jointly), plus you can add unused portions to protect other property.

New York Vehicle Exemption

Up to $4,825 (NY state) or $4,450 (federal exemptions).

Under New York state exemptions, you can protect up to $4,825 of equity in one motor vehicle. Under federal exemptions, you can protect $4,450 in vehicle equity, but married couples can each claim this exemption for their vehicles.

New York Exemption System Choice

New York allows filers to choose between two exemption systems:

New York State Exemptions Include:

• Homestead: $189,050 to $283,575 (depending on county)
• Vehicle: $4,825
• Personal Property: $1,500 per item up to $12,625 total
• Cash and Bank Accounts: $6,975 (or up to $13,950 for married couples)
• Jewelry: $1,500
• Tools of Trade: $3,850
• Domestic Animals: $1,500
• Books, Pictures, Computer: $600
• 90% of Earned But Unpaid Wages: Protected from creditors

Federal Exemptions Include:

• Homestead: $27,900 ($55,800 for married couples)
• Vehicle: $4,450 per person
• Household Goods: $700 per item, up to $14,875 total
• Jewelry: $1,875
• Tools of Trade: $2,800
• Wildcard: $1,475 plus up to $13,950 of unused homestead exemption

Other Protected Assets (Both Systems)

• Retirement Accounts: Fully protected including 401(k), IRA, pension plans, and government benefits
• Public Benefits: Social Security, unemployment, workers' compensation, veteran's benefits, disability
• Life Insurance: Proceeds if beneficiary is spouse or dependent (state); $14,875 (federal)
• Personal Injury Recoveries: Up to $10,000 (state); $27,900 (federal)

Filing Bankruptcy in New York

Chapter 7 Bankruptcy in New York

Chapter 7 bankruptcy is commonly filed throughout New York State. The process typically takes 3-4 months from filing to discharge and eliminates most unsecured debts such as credit cards, medical bills, personal loans, and past-due utility bills.

To qualify for Chapter 7 in New York, you must pass the means test by having income below the state median or by showing that after allowable expense deductions, you lack sufficient disposable income to fund a Chapter 13 plan. You must also complete credit counseling from an approved agency within 180 days before filing.

New York filers benefit from the ability to choose between state and federal exemptions, allowing you to maximize asset protection based on your specific situation.

Learn more about Chapter 7 bankruptcy →

Chapter 13 Bankruptcy in New York

Chapter 13 bankruptcy allows New York residents to keep their property while repaying some or all debts through a court-approved 3-5 year payment plan. This option is particularly valuable for New York homeowners behind on mortgage payments or those with higher incomes who don't qualify for Chapter 7.

Chapter 13 is especially beneficial in New York's expensive housing markets. It allows you to catch up on mortgage arrears over time while stopping foreclosure, which can be crucial in high-cost areas like New York City and its suburbs. Your monthly payment is based on your disposable income after allowable living expenses.

Learn more about Chapter 13 bankruptcy →

Bankruptcy Courts in New York

New York is divided into four federal bankruptcy court districts:

Eastern District of New York

Main Courthouse: Brooklyn (Central Islip for Long Island)

Covers Brooklyn, Queens, Staten Island, and Long Island (Nassau and Suffolk counties). This is one of the busiest bankruptcy courts in the nation.

Court locations: Brooklyn and Central Islip.

Northern District of New York

Main Courthouse: Albany

Covers the northern portion of New York State including Albany, Syracuse, Utica, Plattsburgh, and Binghamton areas.

Court locations: Albany, Syracuse, and Utica.

Southern District of New York

Main Courthouse: Manhattan (also White Plains and Poughkeepsie)

Covers Manhattan, the Bronx, Westchester, Rockland, Putnam, Orange, Dutchess, and Sullivan counties. This district handles many high-profile bankruptcy cases.

Court locations: Manhattan, White Plains, and Poughkeepsie.

Western District of New York

Main Courthouse: Buffalo (also Rochester)

Covers the western portion of New York State including Buffalo, Rochester, Niagara Falls, Jamestown, and the Finger Lakes region.

Court locations: Buffalo and Rochester.

You must file in the district where you have lived for the greater part of the 180 days before filing. Visit the U.S. Courts website for specific court locations and local filing procedures.

New York Residency Requirements

To use New York bankruptcy exemptions, you must have been domiciled (legally residing) in New York for at least 730 days (2 years) before filing. If you've lived in New York for less than 2 years, you must use the exemptions from the state where you lived for the 180 days immediately before the 2-year period.

However, if you've been in New York for the required time period, you can choose between New York state exemptions or federal bankruptcy exemptions, whichever provides better protection for your specific situation.

Find a New York Bankruptcy Attorney

Most New York bankruptcy attorneys offer free initial consultations. Given New York's higher cost of living and the choice between state and federal exemptions, consulting with an experienced New York bankruptcy attorney is highly recommended.

What a New York Bankruptcy Attorney Can Do

• Determine which bankruptcy chapter is right for your financial situation
• Analyze whether state or federal exemptions are better for your specific assets
• Navigate New York's complex exemption system to maximize asset protection
• Help you address high costs of living in NYC and surrounding areas
• Complete and file all required bankruptcy paperwork correctly
• Represent you at the 341 meeting of creditors
• Handle any objections from creditors or the bankruptcy trustee
• Guide you through the entire process from filing to discharge

Cost of Filing Bankruptcy in New York

Chapter 7 bankruptcy attorney fees in New York vary significantly by location:

• New York City: $1,500 to $3,500 plus $338 filing fee
• Westchester/Long Island: $1,500 to $2,500 plus $338 filing fee
• Upstate New York: $1,000 to $2,000 plus $338 filing fee

Chapter 13 attorney fees typically range from $3,500 to $5,500 plus a $313 filing fee. In Chapter 13, attorney fees are usually paid through your repayment plan rather than upfront.

Many New York attorneys offer payment plans for Chapter 7 to make bankruptcy more accessible.

New York-Specific Bankruptcy FAQs

Should I use New York state or federal exemptions?

It depends on your assets. If you own a home with significant equity in the NYC metropolitan area counties (where the homestead is up to $283,575), state exemptions may be better. If you have more personal property, vehicles, or want the wildcard exemption flexibility, federal exemptions might provide better protection. A New York bankruptcy attorney can analyze your specific situation.

Can I keep my co-op apartment in bankruptcy?

Yes, co-op apartments qualify for the homestead exemption in New York. The value of your co-op shares can be protected up to the homestead exemption limit. Since many NYC co-ops are valuable, choosing the right exemption system is crucial.

Can I keep my rent-stabilized apartment?

Yes. Your right to a rent-stabilized or rent-controlled lease can be protected in bankruptcy. While there's no specific exemption for lease rights, bankruptcy generally doesn't affect ongoing rental agreements, and the wildcard exemption can potentially protect any value in a below-market lease.

What if I live in New York City?

NYC residents have access to the higher homestead exemption ($283,575) if using state exemptions. You'll file in either the Eastern District (Brooklyn, Queens, Staten Island) or Southern District (Manhattan, Bronx). Attorney fees tend to be higher in NYC, but free consultations are still widely available.

How does bankruptcy affect my wages in New York?

Under New York law, 90% of your earned but unpaid wages are protected from creditors. Once you file bankruptcy, wage garnishments must stop due to the automatic stay, giving you immediate relief.

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