New York Bankruptcy Law
Bankruptcy Courts in New York
If you live in New York and are thinking about filing for bankruptcy, your case will be handled in one of four federal bankruptcy districts:
- Northern District of New York – Albany, Utica, Syracuse
- Southern District of New York – Manhattan, White Plains, Poughkeepsie
- Eastern District of New York – Brooklyn, Central Islip
- Western District of New York – Buffalo, Rochester
You will file your case in the district that covers the county where you live or where your main property or business is located.
All New York bankruptcy courts follow federal bankruptcy law, with appeals heard by the U.S. Court of Appeals for the Second Circuit, which also covers Connecticut and Vermont. Each district has its own local rules and procedures, so it’s important to work with a bankruptcy attorney who can make sure your petition is filed correctly and your property is fully protected.
Bankruptcy Filing Trends in New York
New York consistently reports tens of thousands of consumer bankruptcy filings each year. Chapter 7 filings—used to erase unsecured debts like credit cards and medical bills—remain most common statewide. Chapter 13 repayment plans are frequently used by homeowners and wage earners who want to catch up on missed mortgage or vehicle payments.
The Eastern and Southern Districts typically record the highest filing volumes because they cover areas with larger populations, including New York City and Long Island.
These filings reflect how many New Yorkers rely on bankruptcy each year to stop creditor harassment, prevent foreclosure, and rebuild financial stability.
New York Exemptions — What You Can Keep
Bankruptcy doesn’t mean losing everything you own. Exemption laws protect property that you need to live and work, such as your home, car, household goods, and retirement funds. Exempt property is protected by law and cannot be taken or sold to pay creditors.
New York allows filers to choose between state and federal exemptions. A married couple filing jointly may each claim the full amount of every exemption in property they both own. Choosing to use state or federal exemptions depends on your circumstances, so speaking with an attorney can help you decide which option provides greater protection.
Common New York State Exemptions
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Homestead (varies by county) | $102,400 / $204,800 (most counties) $170,700 / $341,400 (Albany, Dutchess, Columbia, Orange, Saratoga, Ulster) $204,825 / $409,650 (NYC metro counties) |
| Household goods, clothing, appliances, books, food, domestic animals, and home necessities | Up to $13,625 / $27,250 (aggregate personal-property cap) |
| Jewelry, art, wedding rings | Included in $13,625 / $27,250 cap (jewelry/art limited to $1,325 per debtor) |
| Motor vehicle | $5,500 / $11,000 (or $13,625 / $27,250 if disability-equipped) |
| Tools of trade | Up to $4,075 / $8,150 |
| Cash exemption (if no homestead claimed) | Up to $6,825 / $13,650 |
| Personal property (bank accounts or cash) | Up to $1,325 / $2,650 |
| Pensions and retirement accounts | 100% exempt |
| Public benefits (Social Security, unemployment, workers’ comp, veterans benefits) | 100% exempt |
| Life insurance proceeds, annuities | Often 100% exempt (subject to statute-specific limits) |
| College-savings accounts | Up to $13,625 / $27,250 (unlimited for minors) |
| Health aids and service animals | 100% exempt |
Federal Bankruptcy Exemption Option
Filers in New York may alternatively use the federal exemptions found in the Bankruptcy Code. Common federal exemptions include the following:
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Home equity | $31,575 / $63,150 |
| Motor vehicle | $5,025 / $10,050 |
| Household goods and furnishings ($800 per item limit) | $16,850 / $33,700 |
| Jewelry | $2,125 / $4,250 |
| Wildcard (any property) | $1,675 + unused homestead (up to $15,800) |
| Tools of trade | $3,175 / $6,350 |
| Personal-injury compensation | $31,575 / $63,150 |
| Retirement accounts and pensions | 100 % |
Choosing between state and federal exemptions can significantly impact what you keep, so it’s wise to consult a bankruptcy attorney before filing.
Steps and Local Requirements
Credit counseling. Before filing, you must take a credit counselling course from an approved provider. A second debtor education course is required before your debts can be discharged.
Means test. To qualify for Chapter 7, your income must be below New York’s median or pass a means-test calculation comparing income and expenses.
Filing fees. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. You may request to pay in installments or apply for a waiver if you cannot afford the fee.
Meeting of creditors. About 30 days after filing, you will attend a brief “341 meeting.” It’s not held before a judge. A bankruptcy trustee will verify your identity and ask questions about your paperwork.
In New York, meetings are typically held virtually or in person depending on your district.
Local rules and forms. Each district has its own local rules and required forms available on the court’s website. Following them closely helps avoid delays.
What This Means for You
Filing for bankruptcy in New York can stop garnishments, lawsuits, foreclosure actions, and creditor calls immediately. Most filers keep their homes, vehicles, retirement savings, and personal belongings.
Because New York allows you to choose between state and federal exemptions, and because each district has detailed local rules, it’s important to work with a qualified bankruptcy attorney. An attorney can help you:
- Decide between Chapter 7 and Chapter 13
- Choose exemptions that best protect your assets
- Complete the required counseling courses
- File all documents correctly and meet local deadlines
With the right preparation and legal guidance, bankruptcy can provide meaningful debt relief and a path toward long-term financial stability.
U.S. Bankruptcy Court – Northern District of New York
Federal Circuit: Second Circuit Court of Appeals
Court Locations: Albany, Utica, and Syracuse
Where You File Depends on Where You Live
The Northern District of New York covers 32 counties across the state, including the Capital Region, the Mohawk Valley, the North Country, and much of Central New York. Bankruptcy cases are filed and administered through the courthouses in Albany, Utica, and Syracuse, depending on your county of residence.
Counties Served
Albany • Broome • Cayuga • Chenango • Clinton • Columbia • Cortland • Delaware • Essex • Franklin • Fulton • Greene • Hamilton • Herkimer • Jefferson • Lewis • Madison • Montgomery • Oneida • Onondaga • Ontario • Orange (partial) • Oswego • Otsego • Rensselaer • Saratoga • Schenectady • Schoharie • St. Lawrence • Tioga • Tompkins • Ulster (partial) • Warren • Washington
If you’re unsure which location covers your county, a bankruptcy attorney can confirm where to file and make sure your case complies with all local rules.
Recent Filing Statistics
The Northern District handles several thousand bankruptcy cases each year. Most filings are Chapter 7 cases, used by individuals to eliminate unsecured debts such as credit cards and medical bills. Chapter 13 repayment plans are also common, particularly among homeowners and wage earners seeking to prevent foreclosure or catch up on past-due balances.
U.S. Bankruptcy Court – Southern District of New York
Federal Circuit: Second Circuit Court of Appeals
Court Locations: Manhattan, White Plains, and Poughkeepsie
Where You File Depends on Where You Live
The Southern District of New York covers Manhattan, the Bronx, and several downstate suburban counties. Bankruptcy cases are filed and administered in Manhattan, White Plains, or Poughkeepsie, depending on your county of residence.
Counties Served
Bronx • Dutchess • New York (Manhattan) • Orange (partial) • Putnam • Rockland • Sullivan • Westchester
If you are unsure which courthouse handles your case, a bankruptcy attorney can guide you through the filing process and ensure your petition meets all district requirements.
Recent Filing Statistics
The Southern District consistently records one of the highest bankruptcy volumes in the state. Most cases are Chapter 7 filings, particularly among individuals seeking immediate relief from unsecured debt. Chapter 13 filings are also common among wage earners and homeowners working to stabilize finances or prevent foreclosure.
U.S. Bankruptcy Court – Eastern District of New York
Federal Circuit: Second Circuit Court of Appeals
Court Locations: Brooklyn and Central Islip
Where You File Depends on Where You Live
The Eastern District of New York (EDNY) covers New York City boroughs east of Manhattan and all of Long Island. Bankruptcy cases from this region are filed and administered in either Brooklyn or Central Islip.
Counties Served
Kings (Brooklyn) • Queens • Richmond (Staten Island) • Nassau • Suffolk
If you’re not sure where to file, a bankruptcy attorney can confirm the correct courthouse and ensure all filing requirements are met.
Recent Filing Statistics
The Eastern District consistently handles some of the largest bankruptcy caseloads in the state due to its population size. Most cases are Chapter 7 filings, though Chapter 13 cases are widely used by Long Island homeowners who need time to catch up on mortgages or protect property.
These filings show how individuals and families throughout New York City and Long Island use bankruptcy as a lawful solution to overwhelming debt.
U.S. Bankruptcy Court – Western District of New York
Federal Circuit: Second Circuit Court of Appeals
Court Locations: Buffalo and Rochester
Where You File Depends on Where You Live
The Western District of New York (WDNY) includes the western and Finger Lakes regions of the state. Bankruptcy cases are filed and administered in Buffalo or Rochester, depending on your county of residence.
Counties Served
Allegany • Cattaraugus • Chautauqua • Erie • Genesee • Livingston • Monroe • Niagara • Orleans • Steuben • Wayne • Wyoming • Yates
If you’re uncertain which location applies, a bankruptcy attorney can confirm the correct venue and help ensure your documents are filed accurately.
Recent Filing Statistics
The Western District processes thousands of consumer bankruptcy filings each year. Chapter 7 cases are most common, providing relief from unsecured debts. Chapter 13 plans are also frequently used by residents seeking to protect homes and vehicles.
