Chapter 7 Bankruptcy Lawsuit in New York

New York Chapter 7 Exemptions

New York is an opt-in state (since 2011): a New York debtor may use the state exemption set OR elect the federal Section 522(d) exemptions. Because the federal set carries a larger wildcard, it is often the better choice for low-equity debtors. (Source: Nolo, New York Bankruptcy Exemptions.)

County-Tiered Homestead

New York's homestead exemption (CPLR Section 5206, CPI-indexed) varies by county: $204,825 in the downstate counties (Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam); $170,700 in Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster; and a lower-tier figure for all remaining counties. The lower-tier figure is reported as approximately $102,400 (the CPI-indexed equivalent of the $75,000 statutory base) — this remaining-counties figure is UNVERIFIED in the sources reviewed and should be confirmed against the live CPLR Section 5206 before relying on it. (Source: Nolo, New York Bankruptcy Exemptions.)

A motor vehicle is protected up to $4,825 ($11,975 if equipped for a disabled debtor) under Debtor and Creditor Law Section 282. New York's wildcard is up to $1,175 of cash or personal property, but ONLY if the homestead exemption is not used (D&CL Section 283(2)). (Source: Nolo, New York Bankruptcy Exemptions.)

Means Test: New York Median Income

The Chapter 7 means test compares a debtor's six-month average gross income to the state median family income for the household size. For New York, the U.S. Trustee median family income for a household of four is $139,040 (U.S. Trustee median family income, eff. April 1, 2026; smaller households use lower figures). Below-median filers are generally not presumed to be abusing Chapter 7; above-median filers complete Form 122A-2. (Source: U.S. Trustee Program, justice.gov/ust.)

Which State's Exemptions Apply

Under the 730-day domicile rule (11 U.S.C. Section 522(b)(3)), a debtor must have been domiciled in New York for the 730 days before filing to use New York's exemptions; otherwise an earlier state's set or the federal exemptions may apply.

To compare your six-month income against the New York median, use the Chapter 7 means test calculator at /tools/chapter-7-means-test-calculator. To estimate what property New York or the federal set might protect, use the bankruptcy exemption estimator at /tools/bankruptcy-exemption-estimator.

Exemption amounts change — verify current figures with an attorney. People's Justice is not a law firm and does not provide legal advice; we connect you with licensed attorneys, and we are not a government agency.