New York Bankruptcy

Bankruptcy is a legal process that enables individuals or businesses who are unable to meet their financial obligations to seek relief from some or all of their debts. Although bankruptcy in New York is governed by federal law, what you can keep depends on whether you use the state or the federal exemption list. In New York, you must pick one and use it consistently.

To claim New York State exemptions, you must have resided in the state for at least 730 days before filing. If not, the prior state’s exemptions might apply to your case.

How to File Bankruptcy in New York

Before you file for bankruptcy in New York, you must note the following statements. Before initiating your filing, you must complete a court-approved credit-counseling briefing within 180 days. Gather all necessary documents, including recent tax returns, last six months’ income, pay stubs, bank statements, asset and debt list, titles/deeds, lawsuits/garnishments, and property valuations.

Choose the right chapter and decide whether you want to adopt the federal or state exemption list. File your petition and schedules in the appropriate district court. Pay the filing fee or request an installment/waiver. Attend the 341 meeting of creditors with your valid ID, required documents, and answer the trustee’s questions.

After filing, complete a debtor-education course and respond to trustee or all court requests until discharge or plan completion/confirmation.

New York Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

Each chapter has a different structure, function, and role for exemptions.

Chapter 7 (Liquidation)

This chapter is recommended for individuals with limited income who cannot reasonably repay their debts. A trustee may sell non-exempt assets to repay the creditors. Your exemption choice will affect which property is protected from liquidation.

Chapter 13 (Repayment Plan)

Individuals with regular income who wish to repay their debts over 3–5 years rather than liquidate assets will pick this chapter. Your chosen exemptions affect the amount of your equity (non-exempt ones) that enters the plan base.

Chapter 11 (Reorganization)

This chapter is used by businesses or individuals with large/complex assets and debts. Generally, the procedure is complex and often requires the services of an attorney.

Step in Filing for Bankruptcy in New York

Follow the following steps to file for bankruptcy in New York.

• Complete a credit-counseling course
• Gather income, tax, assets, debts, and other records
• Choose the bankruptcy chapter and select either federal or New York exemptions
• File your petition and schedules with the court
• Pay the filing fee or request relief
• Attend the 341 meeting of creditors
• Complete a debtor-education course
• Monitor trustee or court communications until discharge or plan is completed.

New York Bankruptcy Court and Access to Records

Cases are filed in the U.S. Bankruptcy Court for the District of New York (which has multiple divisions depending on your county).

Court Locations

The Eastern District of New York: The main headquarters is located in Brooklyn. The court has an additional courthouse in Central Islip. The court publishes a “Guide to Schedule C and Exemptions” explaining how individuals can claim exemptions and the choice between state/federal lists. The main office of the U.S Bankruptcy Court for the Eastern District of New York is located at:

The Northern District of New York: The court has its main headquarters in Albany, with additional divisions in Utica and Syracuse. The court allows individuals to view their court/341 meeting calendars. The main office is located in:

The Southern District of New York: Manhattan hosts the main headquarters, and the court has additional divisions in Poughkeepsie and White Plains. The main office of the U.S. Bankruptcy Court for the Southern District of New York is located at:

The Western District of New York: The main headquarters is located in Buffalo, with an additional courthouse in Rochester. The court has a form page for individuals on its website. The main office is

Record Access

You can access most court documents online through the PACER service. This service is free, and users must pay a $0.10 fee to search and view court case files.The Multi-Court Voice Case Information System (McVCIS) is an automated, toll-free telephone system that allows callers to obtain bankruptcy case information using a touch-tone phone. You must call McVCIS toll-free at (866) 222-8029 at any time to retrieve case details.

For photocopies, certified records, or other assistance, you may contact the clerk’s office. You may print copies of court documents from the public terminals at the clerk's office for $0.10 per page.