The New York Answer in One Paragraph
New York filers choose between Chapter 7 (liquidation, 3-4 months, strong discharge rate) and Chapter 13 (3-5 year repayment plan, better for saving a home from foreclosure or for filers above the means test). Three New York-specific inputs drive the choice: (1) the New York means test median of $73,272 for a 1-person household, (2) the New York homestead exemption of $89,975 to $179,975 (county-tier), and (3) the local filing mix and outcome data below. Everything else on this page is elaboration on those three factors.
Quick Side-by-Side
Chapter 7 in New York
Chapter 13 in New York
New York Means Test Thresholds (April 2026)
New York's single-person median of $73,272 sits near the national midpoint. Filers close to the line should compute a careful 6-month average -- one high month (bonus, overtime, commission spike) can flip Part 1 from pass to fail.
| Household Size | New York Median Income |
|---|---|
| 1-person household | $73,300 |
| 2-person household | $95,300 |
| 3-person household | $111,400 |
| 4-person household | $129,700 |
| 5-person household | $140,700 |
| 6-person household | $151,700 |
For household sizes above 6, add $11,100 per additional member. Full details at the New York means test calculator. For a general discussion, see our means test overview.
New York Homestead Exemption and the Chapter Choice
New York's homestead exemption protects $89,975 to $179,975 (county-tier) of primary-residence equity under CPLR 5206. If your home equity is below that amount, Chapter 7 can usually wipe out your unsecured debt without putting the home at risk. If your equity exceeds the exemption, Chapter 13 is typically the right tool to keep the home while cramming down or curing mortgage arrears over 3-5 years.
New York lets filers choose between state exemptions and the federal bankruptcy exemption scheme (11 U.S.C. Section 522(d)). Review the full exemption list at bankruptcyexemptionsbystate.com/new-york before assuming any specific asset is safe.
Homestead amount (New York): $89,975 to $179,975 (county-tier). Statute: CPLR 5206.
New York's Chapter 7 vs Chapter 13 Filing Mix
New York follows the national pattern: 93.0% of its 1,231 consumer cases are Chapter 7, and 7.0% are Chapter 13. Most filers who qualify for Chapter 7 choose it, and Chapter 13 is reserved for filers who need to save a home from foreclosure or cannot pass the means test.
Why does filing mix matter? Attorney fee structures often favor Chapter 13 (paid through the plan rather than up-front), which can produce local-market bias toward Chapter 13 that is not driven by individual debtor facts. FJC data lets you see whether New York's mix matches the economics of the typical filer's situation.
New York Federal Court Data
Numbers below come from the Federal Judicial Center Integrated Database, covering 1,231 consumer bankruptcy cases filed in New York's federal bankruptcy courts.
| Chapter | Cases Filed | Discharge Rate (resolved) |
|---|---|---|
| Chapter 7 | 1,145 | 98.8% |
| Chapter 13 | 86 | 28.2% |
Outcomes in New York differ sharply between the chapters. Of resolved Chapter 7 cases in the FJC database, 98.8% end in discharge. Of resolved Chapter 13 cases, only 28.2% end in discharge; the remaining 71.8% are dismissed before the plan completes. If you are physically able to file either chapter, this gap is a reason to think hard before committing to a 3-5 year Chapter 13 plan in New York.
Which Chapter Fits Which New York Filer?
- If your income is below the New York median ($73,272, 1-person) and you own little non-exempt property: Chapter 7 is almost certainly the right choice. Fast, cheap, and the highest discharge rate in consumer bankruptcy.
- If you are behind on your mortgage or car loan and want to keep the collateral: Chapter 13 lets you cure arrears over 36 to 60 months while the automatic stay blocks foreclosure and repossession.
- If you have high home equity and New York caps the homestead exemption: run the numbers on Chapter 13 cramdown, lien stripping (for wholly underwater junior liens), and the federal BAPCPA homestead cap before assuming Chapter 7 is safe.
- If you have filed before within the lookback windows: use the 1328(f) discharge screener first -- a prior Chapter 7 discharge bars another Chapter 7 for 8 years, and a prior Chapter 13 discharge bars another Chapter 13 for 2 years.
Rule of thumb for New York: if you qualify for Chapter 7 on the means test AND your home equity is within the $89,975 to $179,975 (county-tier) homestead, Chapter 7 is almost always the right choice. Chapter 13 is the right answer when specific facts (arrears, non-exempt equity, prior Chapter 7 within 8 years) rule Chapter 7 out.
Frequently Asked Questions
Is Chapter 7 or Chapter 13 better in New York?
For most New York filers who pass the means test, Chapter 7 is faster, cheaper, and succeeds more often. Chapter 13 is the right choice if you need to save a home from foreclosure, cure arrears, catch up on priority taxes, or cannot qualify for Chapter 7.
What is the Chapter 7 income limit in New York?
There is no hard dollar limit. The means test compares your 6-month average income (annualized) to the New York median for your household size. One person: $73,272. Four person: $129,700. Above-median filers can still qualify by running Part 2 expense deductions.
Can I use federal bankruptcy exemptions in New York?
Yes. New York is an opt-in state -- filers may choose federal exemptions under 11 U.S.C. Section 522(d) instead of state exemptions. Compare both schedules before filing; federal can offer a larger wildcard while state may offer a larger homestead.
How much home equity is protected in New York bankruptcy?
New York's homestead exemption protects $89,975 to $179,975 (county-tier) under CPLR 5206. Federal BAPCPA limits (11 U.S.C. Section 522(p)) can cap this at approximately $214,000 for a residence acquired within 1,215 days of filing.
How long does bankruptcy take in New York?
Chapter 7 takes 3 to 4 months from filing to discharge in New York federal bankruptcy court. Chapter 13 takes 3 years (below-median) or 5 years (above-median) of monthly plan payments before discharge.
Can I switch from Chapter 13 to Chapter 7 in New York?
Yes. Under 11 U.S.C. Section 1307(a), a Chapter 13 debtor in New York generally has the right to convert to Chapter 7 at any time, as long as the case was not previously converted from Chapter 7. You must still pass the means test at the time of conversion.
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Last updated: 2026-04-18. Not legal advice. Statutory homestead and median-income figures are reproduced from public sources and may lag statutory amendments -- verify against current state statute before relying.
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