Filing Chapter 7 Bankruptcy in New York (2026)
Reviewed by DocDraft Legal Team · New York · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by New York. New York is a choice state: under Debtor and Creditor Law section 285 you may elect either the federal 11 U.S.C. 522(d) exemptions or the New York state exemptions found in the CPLR and the Debtor and Creditor Law, but not both. New York's homestead exemption under CPLR 5206(a) is unusual because it varies by county in three tiers, from $204,825 downstate to $102,400 upstate. This page explains that county-tier homestead, the vehicle and cash figures, the means-test median income, and the four federal bankruptcy courts where New Yorkers file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, or child and spousal support.
Does New York use state or federal bankruptcy exemptions?
New York is a choice state. Under Debtor and Creditor Law section 285 a New York filer may elect either the federal 11 U.S.C. 522(d) exemptions or the New York state exemptions in the CPLR and Debtor and Creditor Law. You pick one full system and cannot combine the two, so many New York filers compare both before choosing.
Can I keep my house if I file Chapter 7 in New York?
Often yes. New York's homestead exemption under CPLR 5206(a) varies by county in three tiers: $204,825 in the downstate counties, $170,700 in the mid-Hudson counties, and $102,400 in all other New York counties, for the April 1, 2024 to March 31, 2027 cycle. Equity within your county's figure is protected.
Can I keep my car if I file Chapter 7 in New York?
Usually yes if your equity is modest. New York exempts $5,500 of motor vehicle equity under CPLR 5205(a)(8) and Debtor and Creditor Law section 282, rising to $13,625 if the vehicle is equipped for a disabled debtor. If your car equity is at or below that figure, the vehicle is protected in Chapter 7.
What is the income limit to file Chapter 7 in New York?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for New York are $73,272 for one earner, $92,902 for two, $115,579 for three, and $139,040 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
New York's Choice of Exemptions and the County-Tier CPLR 5206 Homestead
New York is a bankruptcy choice state. Under Debtor and Creditor Law section 285, a debtor filing in New York may elect either the federal 11 U.S.C. 522(d) exemptions or the New York state exemptions drawn from the CPLR and the Debtor and Creditor Law, but the debtor must take one system in full and cannot mix them. What makes New York distinctive is that its homestead exemption under CPLR 5206(a) is not a single number: it is set in three county tiers, adjusted for inflation every three years. For the April 1, 2024 to March 31, 2027 cycle the homestead is $204,825 in the downstate counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam; $170,700 in the mid-Hudson counties of Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster; and $102,400 in all other counties of the state. New York's state set also exempts $5,500 of motor vehicle equity ($13,625 if equipped for a disabled debtor) under CPLR 5205 and Debtor and Creditor Law section 282, and a debtor who claims no homestead may exempt up to $6,825 in cash under Debtor and Creditor Law section 283. New Yorkers file in one of four federal bankruptcy courts: the Northern, Southern, Eastern, or Western District of New York, based on where they have lived for most of the prior 180 days.
Relevant Laws
New York Homestead Exemption (CPLR 5206)
Sets the homestead exemption in three county tiers, adjusted for inflation every three years. For the April 1, 2024 to March 31, 2027 cycle the amounts are $204,825 downstate, $170,700 in the mid-Hudson counties, and $102,400 in all other counties. This is the exemption that lets many New York homeowners keep their house in Chapter 7.
New York Alternative Federal Exemptions and Choice (DCL 285)
The statute that makes New York a choice state. It lets an individual bankruptcy debtor elect the federal 11 U.S.C. 522(d) exemptions in lieu of the New York state exemptions in the CPLR and Debtor and Creditor Law. The debtor takes one system in full and cannot combine the two.
New York Bankruptcy Exemptions: Vehicle, Cash, Wages (CPLR 5205, DCL 282-283)
CPLR 5205 and Debtor and Creditor Law section 282 exempt $5,500 of motor vehicle equity ($13,625 if equipped for a disabled debtor), 90 percent of recent wages under CPLR 5205(d), and retirement accounts under CPLR 5205(c). Debtor and Creditor Law section 283 allows up to $6,825 in cash for a debtor who claims no homestead.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b) lets a state either opt out of or permit the federal 522(d) exemptions, which New York permits as a choice, and section 707(b) sets the means test measured against state median income.
Regional Variances
New York Chapter 7 Exemption Table
Homestead
CPLR 5206(a), for the April 1, 2024 to March 31, 2027 cycle: $204,825 in the downstate counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam; $170,700 in the mid-Hudson counties of Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster; and $102,400 in all other New York counties. Adjusted for inflation every three years. As an alternative, a New York debtor may choose the federal 11 U.S.C. 522(d)(1) homestead instead.
Motor vehicle
CPLR 5205(a)(8) and Debtor and Creditor Law section 282: $5,500 of equity in one motor vehicle, rising to $13,625 if the vehicle is equipped for use by a disabled debtor. Equity above the figure may be reachable by the trustee unless another exemption covers it.
Cash and wildcard
Debtor and Creditor Law section 283: a debtor who does not claim the CPLR 5206 homestead may exempt up to $6,825 in cash, subject to an aggregate personal-property cap. New York has no separate large wildcard, so cash-heavy filers with little home equity often compare the federal 522(d) set, which carries its own portable wildcard.
Personal property
CPLR 5205(a): household furniture, appliances, clothing, and similar necessities up to an aggregate of $13,625, plus specific items such as a wedding ring, and books up to $675. Tools of a trade, profession, or business are exempt up to $4,075 under CPLR 5205(a)(7).
Wages
CPLR 5205(d): 90 percent of earnings from personal services rendered within the 60 days before and after the events described in the statute are exempt. Earnings needed for the support of a debtor and family are protected, mirroring the general cap on wage garnishment in New York.
Retirement
CPLR 5205(c): tax-qualified retirement accounts, including IRAs, Roth, SEP and SIMPLE IRAs, 401(k), 403(b), and 457 plans, and Keogh plans, are generally exempt from creditors. ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law.
Suggested Compliance Checklist
Confirm the current New York means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee New York median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $73,272 for one, $92,902 for two, $115,579 for three, and $139,040 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for your New York district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Choose federal or New York exemptions and value your assets
Before preparing your schedules days after startingDecide between the New York state set (with the county-tier CPLR 5206 homestead of $204,825, $170,700, or $102,400) and the federal 11 U.S.C. 522(d) set with its portable wildcard. Value your home, vehicle, and personal property so you can match assets to exemptions. You must take one system in full.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the correct court: the Northern, Southern, Eastern, or Western District of New York, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current New York means-test median income | Check your household size against the U.S. Trustee New York median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $73,272 for one, $92,902 for two, $115,579 for three, and $139,040 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for your New York district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Choose federal or New York exemptions and value your assets | Decide between the New York state set (with the county-tier CPLR 5206 homestead of $204,825, $170,700, or $102,400) and the federal 11 U.S.C. 522(d) set with its portable wildcard. Value your home, vehicle, and personal property so you can match assets to exemptions. You must take one system in full. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the correct court: the Northern, Southern, Eastern, or Western District of New York, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under CPLR 5205(d), New York exempts 90 percent of the earnings you received for personal services within the 60 days before filing, and earnings needed to support you and your family are protected. Filing also triggers the automatic stay, which stops new wage garnishment immediately. Income you have not yet earned is not part of the bankruptcy estate.
New York's homestead exemption under CPLR 5206(a) varies by county in three tiers, adjusted every three years. For the April 1, 2024 to March 31, 2027 cycle it is $204,825 in the downstate counties (Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, Putnam), $170,700 in the mid-Hudson counties (Dutchess, Albany, Columbia, Orange, Saratoga, Ulster), and $102,400 in all other New York counties.
If you use the New York state set and do not claim the homestead exemption, Debtor and Creditor Law section 283 lets you exempt up to $6,825 in cash, subject to an aggregate personal-property cap. New York has no separate large wildcard, so filers with little home equity and more cash or other assets often compare the federal 522(d) set, which has its own portable wildcard.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or spousal support, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan under New York and federal law.
You file in the federal bankruptcy court for your area: the U.S. Bankruptcy Court for the Northern, Southern, Eastern, or Western District of New York. The Southern District covers Manhattan and the Bronx, the Eastern District covers Brooklyn, Queens, Staten Island, and Long Island. You file where you have lived for most of the prior 180 days.
Other New York guides
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