How much home equity you can protect in a New York Chapter 7 depends entirely on which county you live in — from roughly $102,425 upstate to $204,825 in New York City and its closest suburbs. That’s a nearly two-to-one swing based purely on geography, and it’s the single most important number to get right before filing anywhere in the state.
How Chapter 7 Works in New York
The mechanics follow federal bankruptcy law regardless of state: file a petition, a trustee reviews your assets against the exemptions available to you, and anything not covered is technically available to pay creditors. Most New York Chapter 7 cases are “no-asset” cases — exemptions cover everything the filer owns, and the case closes with a discharge roughly three to four months after filing.
What makes New York more complicated than most states is the sheer number of variables: a tiered, county-dependent homestead exemption, a genuine choice between state and federal exemption systems, and four separate federal districts with different local practices.
How Much Home Equity Can You Protect in New York?
New York’s homestead exemption is Tiered by county: $204,825 in Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam counties; $170,700 in Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster counties; roughly $102,425 in all remaining counties. Married couples who both own the home and file jointly can double the applicable amount.
The homestead amount depends on the county where the property sits, not where you file. Figures adjust roughly every three years under CPLR 5206.A filer in Buffalo and a filer in Brooklyn with identical home equity can have very different outcomes purely because of the county line — worth confirming your exact county tier before assuming your equity is fully covered.
Should You Use New York or Federal Exemptions?
New York is a genuine “choice” state: if you’ve lived in New York for at least two years, you can elect either New York’s exemption list or the federal exemptions under 11 U.S.C. § 522(d), but not a combination of both. Homeowners in high-equity counties usually do better under New York’s own homestead exemption. Renters and filers with modest home equity sometimes come out ahead under the federal system, since its wildcard provision can absorb more of their non-housing property. This is a decision worth running past an attorney with your specific numbers, since the better choice depends heavily on what you actually own.
What Happens to Your Car in a New York Chapter 7?
New York exempts $5,500 in equity in one vehicle, or up to $13,625 if the vehicle is equipped for a disabled filer's use.
Filers with a vehicle worth more than the standard exemption should check whether New York’s wildcard exemption can cover the gap, or whether the federal exemption choice would leave more of the vehicle protected.
What Is New York’s Wildcard Exemption?
New York’s wildcard is $1,175 for any personal property, or up to $1,325 in cash if you aren't claiming the homestead exemption. It’s a useful tool for protecting bank balances, valuable personal property, or the portion of a vehicle’s equity that exceeds the standard vehicle exemption.
Do You Qualify for Chapter 7 in New York? The Means Test
Your average household income over the six months before filing is compared against New York’s median income for a household your size. Below the median, you qualify for Chapter 7 automatically. Above it, a further expense calculation determines whether you have enough disposable income to fund a Chapter 13 plan instead.
New York’s current median income figures:
- 1 person: $73,272
- 2 people: $92,902
- 3 people: $115,579
- 4 people: $139,040
- Each additional person: add $11,100
Which Federal District Do You File In?
New York has four federal bankruptcy districts. Eastern District (Brooklyn) - Kings, Queens, Richmond, Nassau, Suffolk
Southern District (Manhattan/White Plains) - Bronx, New York, Dutchess, Orange, Putnam, Rockland, Sullivan, Westchester
Western District (Buffalo/Rochester) - Erie, Monroe, and western counties
Northern District (Albany/Utica) - Albany, Saratoga, and the remaining upstate counties
Which district you file in depends on where you’ve lived for most of the past six months, not where you work.
How Much Does a Bankruptcy Attorney Cost in New York?
Chapter 7 attorney fees in New York typically run $1,500 to $3,000, with fees toward the higher end of that range concentrated in New York City and toward the lower end upstate. That’s on top of the 338 federal filing fee. Chapter 13 costs considerably more given the complexity of a multi-year repayment plan: typically $4,100 to $7,500, usually built into the repayment plan rather than paid entirely upfront.
Common Mistakes New York Filers Make
Assuming the homestead exemption is the same statewide. The nearly two-to-one gap between upstate and downstate counties catches a lot of filers off guard, especially recent movers within the state.
Not evaluating the state-versus-federal exemption choice. This decision genuinely changes outcomes in New York more than in most states, given how different the two systems are.
Overlooking a non-filing spouse’s income in the means test calculation, which counts total household income.
Filing in the wrong district. New York’s four districts have different local rules and, in some cases, different processing times — filing based on a work address instead of a residential address is a common error.
A Realistic Example
Consider a filer we’ll call Anthony, living in Rochester, in the Western District. He works in logistics and owns a home with about $95,000 in equity, plus a car worth $6,000 with a small loan remaining.
Rochester falls in Monroe County, part of New York’s lowest homestead tier at roughly $102,425 — which fully covers his $95,000 in equity with some room left. His vehicle equity of roughly $2,500 (after the remaining loan) falls under the $5,500 vehicle exemption, so it’s fully protected too.
His income falls below New York’s median for a household of two, so he qualifies for Chapter 7 automatically. He files in the Western District, attends the 341 meeting, and receives his discharge about ninety days later — home and car both untouched.
Frequently Asked Questions About Chapter 7 Bankruptcy in New York
Can I keep my house if I file Chapter 7 in New York?
Usually, if your equity is under your county’s homestead exemption tier — roughly $102,425 in most upstate counties, $170,700 in a mid-tier group including Albany and Orange counties, and $204,825 in New York City and the closest suburban counties. Equity above your county’s tier isn’t automatically protected.
Does the New York homestead exemption depend on where I live?
Yes, specifically on the county where the property is located. New York uses a three-tier system under CPLR 5206, with New York City and nearby suburban counties receiving the highest protection and most upstate counties receiving the lowest.
Can I choose federal exemptions instead of New York’s?
Yes, if you’ve lived in New York for at least two years before filing. You can’t combine the two systems — it’s New York’s exemptions or the federal exemptions, not a mix.
How much car equity can I protect in New York bankruptcy?
$5,500 in one vehicle, or up to $13,625 if the vehicle is equipped for a disabled filer’s use. Equity above that may be covered by New York’s wildcard exemption.
What is the New York bankruptcy means test income limit?
It depends on household size and updates periodically. Current thresholds are roughly $73,272 for one person, $92,902 for two, $115,579 for three, and $139,040 for four, with $11,100 added per additional person.
Which bankruptcy district do I file in if I live in New York City?
Manhattan and the Bronx fall under the Southern District. Brooklyn, Queens, and Staten Island fall under the Eastern District, along with Nassau and Suffolk counties on Long Island.
Where to Verify the Details
New York’s exemption statutes are published in CPLR §§ 5205 and 5206. For current means test figures, check the U.S. Trustee Program website. District-specific filing information is available through the Eastern, Southern, Northern, and Western District bankruptcy courts.
Alternatives to Chapter 7 in New York
If your income is too high to pass the means test, or you need to catch up on mortgage payments, our Chapter 7 vs. Chapter 13 comparison guide explains how a repayment plan works instead of liquidation. If you’re weighing New York’s tiered exemptions against a flat, unlimited homestead state, see our Chapter 7 guide for Florida. For a look at broader debt trends, see our average debt data for Illinois.
Last reviewed by American Debt Guide Editorial Team. Figures on this page reflect New York bankruptcy exemption amounts and federal filing data as of July 2026.