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New York Bankruptcy Laws

Thinking of Filing Bankruptcy in New York?

The bankruptcy laws in New York provide two main avenues for fighting your debt: Chapter 7 and Chapter 13.

Each works differently, and this page may help you get an idea of how bankruptcy may help you.

A quick way to get answers to your bankruptcy questions is to speak with a local lawyer. Get a free evaluation by a New York lawyer.

New York Bankruptcy Law

Chapter 7 and Chapter 13 bankruptcy each have their own requirements that you must meet before you can file.

The requirements are different for each, and one of your first tasks with your bankruptcy attorney may be a “means test” which will help determine your eligibility for the chapters.

Chapter 7 bankruptcy is typically filed by individuals with lower incomes who also owe lots of unsecured debt, like credit card debt and medical bills.

Chapter 7 bankruptcy may be an option in many of these cases because the unsecured debt may be discharged and retired completely.

There are strong property protections with Chapter 7 in the form of bankruptcy exemptions.

Exempt property may not be sold during bankruptcy. In most Chapter 7 cases there is no property sale. While some bankruptcy exemptions for New York state are listed here, speak with lawyer to get full information on how bankruptcy may affect you.


  • Real property, including a mobile home, worth up to $50,000.


  • 90 percent of earnings, subject to some limitations.


  • One motor vehicle worth up to $2,400.

Other Property

  • Stove, food and fuel necessary for 60 days.
  • One sewing machine.
  • Family Bible, pictures, school books and up to $50 worth of other books.
  • Church pew.
  • Domestic animals worth up to $450.
  • Clothing.
  • Household furniture.
  • Crockery, tableware, cooking utensils.
  • Wedding ring.
  • Watch worth up to $35.
  • Up to $600 worth of trade tools and equipment.

In New York, Chapter 13 bankruptcy might be a good option for people who own a home, cars or other property they want to keep. Although both Chapter 7 and Chapter 13 offer property protection, Chapter 13 can, typically, provide a broader shield.

Chapter 13 bankruptcy freezes, orders and structures debt.

It is consolidated, and may be reduced, and set monthly payments are made to a trustee instead of juggling the obligations of many creditors. During this time creditors may not collect on these back debts, but ongoing payments must be kept current.

Speak to a Bankruptcy Lawyer Today

Bankruptcy Help: The New York Bankruptcy Lawyer

If you’re already overwhelmed with debt, you don’t need to be overwhelmed by complex laws. Consider speaking with a local bankruptcy lawyer to get advice on exactly how bankruptcy may help you regain control of your life.

We can help you get in touch with a local sponsoring New York bankruptcy attorney. Complete the free form on this page or call us, toll free, at 877-349-1309 and we’ll connect you with a sponsoring New York bankruptcy lawyer near you.

Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.

Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.

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