New York
Bankruptcy in New York (2026): Exemptions & Means Test
Independently fact-checked against primary sources (last audited August 16, 2026). · Reviewed by the RecordingLaw editorial team. · Law checked current as of August 16, 2026. · 5 primary sources cited on this page. How we verify our legal content
Bankruptcy is a federal process, but what you keep depends heavily on the exemption rules of your state, and New York stands out in two ways. It is one of the minority of states that lets a filer choose between the federal bankruptcy exemptions and the state exemptions, and its homestead exemption is tiered by county, ranging from about $102,400 upstate to $204,825 in the downstate counties. This guide explains how Chapter 7 and Chapter 13 work for New York residents, the key New York exemptions, and the current Chapter 7 means-test income figures, all dated to primary sources.
This guide is part of our Bankruptcy by State series. It is general information, not legal advice, and exemption and income figures change, so confirm current amounts before relying on them.
Federal or state exemptions: New York lets you choose
The first question in any bankruptcy is which set of exemptions applies, because exemptions decide what property you keep. Under 11 U.S.C. 522(b), each state either keeps the federal exemption menu available or opts out and forces filers onto state law. New York opted out: Debtor and Creditor Law section 284 provides that debtors domiciled in New York "are not authorized to exempt from the estate property that is specified under subsection (d)" of 11 U.S.C. 522. The choice New York filers actually have comes from a separate statute. Debtor and Creditor Law section 285 provides that notwithstanding any inconsistent provision of law, an individual debtor may opt to exempt property under 11 U.S.C. 522 in lieu of the state exemptions. The practical result is the one most guides describe: a New York filer may elect either the federal exemptions in 11 U.S.C. 522(d) or the New York exemptions found in the Civil Practice Law and Rules (CPLR) and the Debtor and Creditor Law. You generally pick one full system, not a mix of both, and joint filers must use the same system. The choice matters: filers with significant home equity in a high-cost county often prefer the New York homestead, while filers who rent or have little equity sometimes do better with the federal wildcard.
The New York homestead exemption: tiered by county
New York protects a primary residence through CPLR 5206, and unusually, the amount depends on where the home is located. As adjusted effective April 1, 2024 by the New York Department of Financial Services, the homestead exemption is $204,825 for a home in the downstate counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam; $170,700 for a home in the mid-state counties of Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster; and $102,400 for a home in any of the remaining counties. The amounts are indexed and adjusted every three years, with the next scheduled adjustment on April 1, 2027. One federal limit applies regardless of state law: under 11 U.S.C. 522(p), equity in a homestead acquired within 1,215 days before filing is capped at a federally adjusted amount, so recently acquired equity may be limited.
Vehicle, personal property, and wage exemptions in New York
New York's personal-property exemptions are set mainly in CPLR 5205 and were also adjusted effective April 1, 2024. The motor-vehicle exemption is $5,500, rising to $13,625 for a vehicle equipped for use by a person with a disability; Debtor and Creditor Law section 282(1) sets the same figures for a bankruptcy filer. CPLR 5205 also protects household furniture, appliances, a wedding ring, and other listed items, plus tools of the trade up to a set limit, and most retirement accounts. A filer who does not claim the homestead may use the bankruptcy-specific cash exemption in Debtor and Creditor Law section 283(2): cash in the amount by which $13,625 exceeds the other personal-property exemptions claimed, or $6,825, whichever is less. That provision applies only in bankruptcy. The $1,325 cash figure in CPLR 5205(a)(9) is the smaller amount available to an ordinary money-judgment debtor outside bankruptcy. For wages, New York generally exempts 90 percent of earnings received within the 60 days before, plus a portion of ongoing income; income-execution limits also apply. Because New York permits the choice, many filers compare these amounts with the federal exemptions in 11 U.S.C. 522(d), summarized by Cornell Law School's Legal Information Institute, which include a wildcard that can cover any property. Confirm the current federal amounts when you file.
The Chapter 7 means test and New York median income
Chapter 7 erases most unsecured debt, but you generally must complete the means test, which starts by comparing your household income to the median family income for your state and household size. The U.S. Trustee Program publishes those medians from Census Bureau data and updates them periodically. For cases filed on or after July 15, 2026, the New York median family income figures are $73,272 for one earner, $92,902 for a household of two, $115,579 for three, and $139,040 for four, adding $11,100 for each additional person. If your income is at or below the figure for your household size, there is no presumption of abuse (the rule that presumes a Chapter 7 case is an abuse when income left after allowed expenses reaches set thresholds) and you do not need to complete Form 122A-2, the second means-test form, but that alone does not make you eligible for Chapter 7. If it is above, you complete the longer means-test calculation that subtracts allowed expenses, including regional standards, to see whether a presumption of abuse arises or whether Chapter 13 is the path. These figures change roughly twice a year, so check the current table at filing.
Chapter 7 versus Chapter 13 in New York
Chapter 7 is a liquidation: a trustee can sell non-exempt property to pay creditors, and most remaining unsecured debt is discharged in a few months. With New York's homestead and personal-property exemptions, many filers keep everything they own, but a high-value non-exempt asset can be at risk. Chapter 13 is a repayment plan that runs three to five years; you keep your property and catch up on missed mortgage or car payments over time, which is why Chapter 13 is common for people trying to stop a foreclosure or cure an arrearage. The moment either case is filed, the automatic stay under 11 U.S.C. 362 stops most collection efforts, including foreclosure sales, repossessions, lawsuits, and wage garnishment. Before filing, federal law requires a credit-counseling course from an approved provider, and a debtor-education course is required before discharge.
Where you file: the four New York bankruptcy courts
New York is divided into four federal judicial districts, and you file in the one that covers your county. The Southern District of New York covers Manhattan, the Bronx, and several Hudson Valley counties; the Eastern District of New York covers Brooklyn, Queens, Staten Island, Nassau, and Suffolk; the Northern District of New York covers the Albany, Syracuse, Utica, and North Country regions; and the Western District of New York covers Buffalo, Rochester, and the western counties. Each court posts local rules, official forms, filing fees, and self-help resources.
What bankruptcy can and cannot do
Bankruptcy discharges most unsecured debts such as credit cards, medical bills, and personal loans, but several categories survive a discharge. Most student loans remain unless you prove undue hardship in a separate proceeding, and recent income taxes, domestic-support obligations like child support and alimony, and most court fines are not dischargeable. Filing affects your credit for years, and giving away or selling property before filing can create problems, so have a New York lawyer review your timing and which exemption system to elect in a free bankruptcy evaluation (attorney advertising). Nothing here predicts how a particular case will turn out; the result depends on your income, your property, your debts, your county, and which exemption system you elect.
Frequently Asked Questions
Does New York use state or federal bankruptcy exemptions?
New York lets you choose, though the statutory route is indirect. Debtor and Creditor Law section 284 opts New York out of the federal exemptions, but section 285 separately allows an individual debtor to opt to use the federal exemptions in lieu of the state ones. So a filer may elect either the federal exemptions in 11 U.S.C. 522(d) or the New York state exemptions in the CPLR and the Debtor and Creditor Law, but not a mix of both. Joint filers must use the same system.
What is the homestead exemption in New York?
New York's homestead exemption is tiered by county under CPLR 5206. As adjusted effective April 1, 2024, it is $204,825 in the downstate counties (Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, Putnam), $170,700 in the mid-state counties (Dutchess, Albany, Columbia, Orange, Saratoga, Ulster), and $102,400 in the remaining counties. The amounts are indexed, with the next adjustment scheduled for April 1, 2027. Confirm current amounts when you file.
What is the New York median income for the means test?
For Chapter 7 cases filed on or after July 15, 2026, the U.S. Trustee Program lists New York median family income as $73,272 for one person, $92,902 for two, $115,579 for three, and $139,040 for four, adding $11,100 for each additional person. The figures update periodically, so confirm the current table when you file.
Will I lose my house or car in a New York bankruptcy?
Often not. The county-tiered homestead protects a large amount of home equity, and a Chapter 13 plan can stop a foreclosure by curing missed payments. A vehicle is protected by the $5,500 New York motor-vehicle exemption under CPLR 5205(a)(8) and Debtor and Creditor Law section 282(1) (or $13,625 if equipped for a person with a disability), or by the federal motor-vehicle exemption if you elect the federal system. Whether any asset is at risk depends on your equity, your county, and which exemptions you use.
Which New York counties get the highest homestead exemption?
The top tier of $204,825 (effective April 1, 2024) applies to Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, and Putnam counties. The middle tier of $170,700 applies to Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster. All other counties use $102,400.
Where do I file bankruptcy in New York?
In the federal district that covers your county: the Southern District (Manhattan, Bronx, and parts of the Hudson Valley), the Eastern District (Brooklyn, Queens, Staten Island, Nassau, Suffolk), the Northern District (Albany, Syracuse, Utica, North Country), or the Western District (Buffalo, Rochester, and the western counties).
What is the difference between Chapter 7 and Chapter 13 in New York?
Chapter 7 is a liquidation that discharges most unsecured debt in a few months, subject to the means test. Chapter 13 is a three-to-five-year repayment plan that lets you keep property and cure missed mortgage or car payments, which is why it is used to stop foreclosure. Both trigger the automatic stay that halts most collection.
What debts cannot be erased in bankruptcy?
Most student loans (absent proven undue hardship), recent income taxes, child support and alimony, and most court fines generally survive a bankruptcy discharge. Credit cards, medical bills, and most personal loans are typically dischargeable.
Updates
Clarified that income at or below the state median means the presumption of abuse does not arise under the Chapter 7 means test, not that a filer qualifies for Chapter 7.
Corrected the New York exemption explanation: the choice between federal and state exemptions comes from Debtor and Creditor Law section 285 overriding New York's section 284 opt-out rather than from New York never opting out, and a filer who claims no homestead can exempt cash up to $6,825 under section 283(2) rather than the $1,325 figure that applies to ordinary judgment debtors outside bankruptcy.
Independently fact-checked against the cited primary sources; governing law re-checked for recent changes
Governing law re-checked for recent changes
Governing law re-checked for recent changes
Reviewed and approved by an editor
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
New York Debtor and Creditor Law
§ 282Permissible exemptions in bankruptcyIn force
Permissible exemptions in bankruptcy. Under section five hundred twenty-two of title eleven of the United States Code, entitled "Bankruptcy", an individual debtor domiciled in this state may exempt from the property of the estate, to the extent permitted by subsection (b) thereof, only (i) personal and real property exempt from application to the satisfaction of money judgments under sections fifty-two hundred five and fifty-two hundred six of the civil practice law and rules, (ii) insurance policies and annuity contracts and the proceeds and avails thereof as provided in section three thousand two hundred twelve of the insurance law and (iii) the following property: 1. Bankruptcy exemption of a motor vehicle. One motor vehicle not exceeding four thousand dollars in value above liens and encumbrances of the debtor; provided, however, if such vehicle has been equipped for use by a disabled debtor, then ten thousand dollars in value above liens and encumbrances of the debtor. 2. Bankruptcy exemption for right to receive benefits.
Official text (excerpt) · last checked 2026-09-06 · Read the full text in our law library · Verify at legislation.nysenate.gov
§ 285Alternative federal exemptionsIn force
Alternative federal exemptions. Notwithstanding any inconsistent provision of law, an individual debtor may opt to exempt from property of the estate such property as is permitted to be exempted pursuant to section five hundred twenty-two of title eleven of the United States Code in lieu of such property as is permitted to be exempted pursuant to the applicable provisions of this article.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at legislation.nysenate.gov
§ 283Aggregate individual bankruptcy exemption for certain annuities and personal propertyIn force
Aggregate individual bankruptcy exemption for certain annuities and personal property. 1. General application. The aggregate amount the debtor may exempt from the property of the estate for personal property exempt from application to the satisfaction of a money judgment under subdivision (a) of section fifty-two hundred five of the civil practice law and rules and for benefits, rights, privileges, and options of annuity contracts described in the following sentence shall not exceed ten thousand dollars. Annuity contracts subject to the foregoing limitation are those that are: (a) initially purchased by the debtor within six months of the debtor's filing a petition in bankruptcy, (b) not described in any paragraph of section eight hundred five (d) of the Internal Revenue Code of nineteen hundred fifty-four, and (c) not purchased by application of proceeds under settlement options of annuity contracts purchased more than six months before the debtor's filing a petition in bankruptcy or under settlement options of life insurance policies. 2. Contingent alternative bankruptcy exemption.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at legislation.nysenate.gov
§ 284Exclusivity of exemptionsIn force
Exclusivity of exemptions. In accordance with the provisions of section five hundred twenty-two (b) of title eleven of the United States Code, debtors domiciled in this state are not authorized to exempt from the estate property that is specified under subsection (d) of such section.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at legislation.nysenate.gov
New York Civil Practice Law and Rules
§ 5206Real property exempt from application to the satisfaction of money judgmentsIn forcecited in 2 of our articles
Real property exempt from application to the satisfaction of money judgments. (a) Exemption of homestead. Property of one of the following types, not exceeding one hundred fifty thousand dollars for the counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred twenty-five thousand dollars for the counties of Dutchess, Albany, Columbia, Orange, Saratoga and Ulster; and seventy-five thousand dollars for the remaining counties of the state in value above liens and encumbrances, owned and occupied as a principal residence, is exempt from application to the satisfaction of a money judgment, unless the judgment was recovered wholly for the purchase price thereof: 1. a lot of land with a dwelling thereon, 2. shares of stock in a cooperative apartment corporation, 3. units of a condominium apartment, or 4. a mobile home. But no exempt homestead shall be exempt from taxation or from sale for non-payment of taxes or assessments. (b) Homestead exemption after owner's death.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at legislation.nysenate.gov
Also relied on in: New York Homestead Exemption: STAR, Enhanced STAR and How to Apply
§ 5205Personal property exempt from application to the satisfaction of money judgmentsIn forcecited in 2 of our articles
Personal property exempt from application to the satisfaction of money judgments. (a) Exemption for personal property. The following personal property when owned by any person is exempt from application to the satisfaction of a money judgment except where the judgment is for the purchase price of the exempt property or was recovered by a domestic, laboring person or mechanic for work performed by that person in such capacity: 1. all stoves and home heating equipment kept for use in the judgment debtor's dwelling house and necessary fuel therefor for one hundred twenty days; one sewing machine with its appurtenances; 2. religious texts, family pictures and portraits, and school books used by the judgment debtor or in the family; and other books, not exceeding five hundred dollars in value, kept and used as part of the family or judgment debtor's library; 3. a seat or pew occupied by the judgment debtor or the family in a place of public worship; 4.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at legislation.nysenate.gov
Also relied on in: New York Debt Collection Laws: The 10% Income Execution Cap and the 3-Year Credit Card Deadline
United States Code Title 11
§ 522ExemptionsIn forcecited in 54 of our articles
In this section— “dependent” includes spouse, whether or not actually dependent; and “value” means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate. Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 7,574 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):Taylor v. Freeland & Kronz (1992) held that a trustee who does not object within the 30-day period cannot later challenge an exemption claimed under 522(l), even one with no statutory basis. Owen v. Owen (1991) held that 522(f) lien avoidance is not defeated by a state exemption written to exclude lien-encumbered property.
Opinions citing this section in our collection:
- Taylor v. Freeland & Kronz (Supreme Court of the United States 1992, 503 U.S. 638)✓A Chapter 7 debtor listed the entire proceeds of her TWA discrimination suit as exempt and the trustee let the 30-day objection window lapse; the Court held that under § 522(l) the property is exempt once no one objects, even absent a colorable statutory basis.
- Patterson v. Shumate (Supreme Court of the United States 1992, 504 U.S. 753)✓A debtor's $250,000 ERISA pension interest was excluded from his estate under § 541(c)(2); answering a surplusage argument, the Court read § 522(d)(10)(E) as exempting a broader set of plans, and expressly declined to decide whether § 522(b)(2)(A) also applied.
- Owen v. Owen (Supreme Court of the United States 1991, 500 U.S. 305)✓An ex-wife's judgment lien attached to a Florida condo before state law made it a homestead; the Court held § 522(f) measures impairment against the exemption the debtor would have had but for the lien, so Florida's carve-out for prior liens did not defeat avoidance.
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy Laws by State (2026): Exemptions & Means Test, Bankruptcy in Alabama (2026): Exemptions & Means Test, Bankruptcy in Alaska (2026): Exemptions & Means Test
§ 362Automatic stayIn forcecited in 54 of our articles
Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of— the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title; the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title; any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate; any act to create, perfect, or enforce any lien against property of the estate; any act to create, perfect, or enforce against property of the debtor any lien to the extent that such lien secures a claim that arose before the commencement of the case under this title; any act to…
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 19,606 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (1988) held that an undersecured creditor gets no interest as adequate protection under 362(d)(1) for delay caused by the stay. NLRB v. Bildisco & Bildisco (1984) applied 362(a) in requiring claims be pursued through bankruptcy administration, not suit.
Opinions citing this section in our collection:
- Clinton v. Jones (Supreme Court of the United States 1997, 520 U.S. 681)“…ublic interests. Brief for Petitioner 34-36. See, e. g., 11 U. S. C. § 362 (litigation against debtor stayed upon…”
- United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (Supreme Court of the United States 1988, 484 U.S. 365)✓An undersecured lender on a Houston apartment project sought monthly payments as the price of continuing the § 362(a) automatic stay; the Court held that 'adequate protection' under § 362(d)(1) does not entitle it to interest for the delay in foreclosing on its collateral.
- Pennzoil Co. v. Texaco Inc. (Supreme Court of the United States 1987, 481 U.S. 1)“…if it were forced to file for bankruptcy under Chapter 11. 11 U. S. C. §362 . Texaco, or its successor in interest,…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy in Arizona (2026): Exemptions & Means Test, Bankruptcy in Arkansas (2026): Exemptions & Means Test, Bankruptcy in California (2026): Exemptions & Means Test
Sources and References
- New York Department of Financial Services, Amount Exempt from Judgments (CPLR 5205/5206 indexed amounts effective April 1, 2024: homestead $204,825 / $170,700 / $102,400; motor vehicle $5,500; cash $1,325; next adjustment April 1, 2027)(dfs.ny.gov).gov
- New York Civil Practice Law and Rules (CPLR) 5206, real property (homestead) exempt from money judgments, tiered by county(nysenate.gov).gov
- U.S. Trustee Program, Census Bureau Median Family Income by family size for cases filed on or after April 1, 2026 (New York means-test medians)(justice.gov).gov
- Cornell Law School Legal Information Institute, 11 U.S.C. 522 (state opt-out/choice under 522(b); federal exemptions under 522(d); homestead cap under 522(p))(law.cornell.edu)
- U.S. Bankruptcy Court for the Southern District of New York (one of four New York districts; forms, local rules, county coverage)(nysb.uscourts.gov).gov
- U.S. Trustee Program, Means Testing overview (median income and update schedule)(justice.gov).gov
- New York Debtor and Creditor Law sec. 284, Exclusivity of exemptions (New York's 11 U.S.C. 522(b) opt-out: debtors domiciled in New York are not authorized to use the 522(d) federal exemptions)(nysenate.gov)
- New York Debtor and Creditor Law sec. 285, Alternative federal exemptions (notwithstanding any inconsistent provision of law, an individual debtor may opt to use the 11 U.S.C. 522 exemptions in lieu of the state exemptions)(nysenate.gov)
- New York Debtor and Creditor Law sec. 283, aggregate personal-property limit and the contingent alternative bankruptcy cash exemption (base $10,000 and $5,000; $13,625 and $6,825 as adjusted effective April 1, 2024)(nysenate.gov)
- New York Debtor and Creditor Law sec. 282, permissible exemptions in bankruptcy, including the motor-vehicle exemption ($4,000 base, $10,000 base if equipped for a disabled debtor; $5,500 and $13,625 as adjusted effective April 1, 2024)(nysenate.gov)
- U.S. Trustee Program, Census Bureau Median Family Income by Family Size, cases filed on or after July 15, 2026 (New York means-test medians)(justice.gov)
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