Featured Bankruptcy Attorneys


Understanding Bankruptcy Law in New York: A Comprehensive Overview


Bankruptcy is a legal process designed to provide individuals and businesses with a fresh start when overwhelmed by financial difficulties. In New York, bankruptcy law plays a crucial role in protecting the rights of debtors and facilitating the orderly resolution of debts. This article provides a comprehensive overview of the law in New York, highlighting key aspects and available options.

Chapter 7, also known as liquidation bankruptcy, is the most common type filed in New York. It involves the liquidation of non-exempt assets to repay creditors. Once the process is complete, eligible debts are discharged, providing the debtor with a clean slate to rebuild their financial life.

Chapter 13 is an alternative to Chapter 7, allowing individuals to reorganize their debts and create a repayment plan. Debtors can retain their assets while repaying creditors over a period of three to five years. This type of bankruptcy is suitable for those with a regular income who want to protect their property from foreclosure or repossession.


New York has specific exemptions that protect certain assets from liquidation during bankruptcy. These exemptions include the Homestead Exemption, which safeguards a portion of the debtor’s equity in their primary residence. Other exemptions cover personal property, retirement accounts, and tools of trade, among others.

Means Test

To qualify for Chapter 7, debtors in New York must pass the means test. This test evaluates their income and expenses to determine if they have sufficient financial need for Chapter 7 relief. Those who fail the means test may still be eligible for Chapter 13 bankruptcy.

Automatic Stay

Upon filing for bankruptcy, an automatic stay is issued, halting all collection efforts by creditors. This stay prevents wage garnishment, foreclosure, repossession, and other collection activities, providing debtors with immediate relief and breathing space.

Bankruptcy Court

Cases in New York are handled by the U.S. Bankruptcy Court for the Southern and Eastern Districts of New York. These courts have jurisdiction over bankruptcy matters and oversee the administration of cases filed within their respective districts.


Bankruptcy Law in New York provides a lifeline for individuals and businesses burdened by overwhelming debt. Whether through Chapter 7 or Chapter 13, New Yorkers have options to address their financial challenges and obtain a fresh start. Understanding the key aspects of bankruptcy law, including exemptions, means tests, and the automatic stay, is crucial for navigating the process successfully. Consulting with a qualified bankruptcy attorney can provide valuable guidance and support throughout the proceedings, helping debtors make informed decisions about their financial future.


Goldsand & Cinque, Esqs.2424 Route 6 Ste 2L

Brewster, NY 10509

(845) 278-2000
The Law Offices of Joseph H. Nivin, P.C.11835 Queens Blvd Ste 1220A

Forest Hills, NY 11375

(347) 642-0376
Trachten, Gary E350 5th Ave

New York, NY 10118

(212) 868-1010
Davidson Fink LLP400 Meridian Centre Blvd Ste 200

Rochester, NY 14618

(585) 546-6448
Law and Mediation Office of Darren M. Shapiro99 Jericho Tpke Ste 300-k

Jericho, NY 11753

(516) 333-6555
Zawisny & Zawisny578 Driggs Ave

Brooklyn, NY 11211

(718) 388-3330
Wojtan, Vallone & Melin P.C.2956 Union Rd

Cheektowaga, NY 14227

(716) 681-3355
Nuchereno John R2503 Niagara St

Buffalo, NY 14207

(716) 875-2503
Duke Law Firm, P.C.3407 Rochester Rd

Lakeville, NY 14480

(585) 449-4987
Rivera Law Office806 South St

Peekskill, NY 10566

(914) 930-8637
Lyman & Lyman51 N Main St

Albion, NY 14411

(585) 589-5623
Sherwood Meryl P600 Madison Ave

New York, NY 10022

(212) 644-2343
Law Office of Ronald V. De Caprio65 W Ramapo Rd

Garnerville, NY 10923

(845) 354-3212
Arnold Streisfeld301 Old Tarrytown Rd

White Plains, NY 10603

(914) 686-0558
Finucane Hartzell6 N Main St

Pittsford, NY 14534

(585) 586-0220
Angiuli & Gentile, LLP1493 Hylan Blvd

Staten Island, NY 10305

(347) 201-4447
Frishberg Neal D1 Harriman Sq

Goshen, NY 10924

(845) 294-7944
Metz Matthew P3535 Hill Blvd

Yorktown Heights, NY 10598

(914) 243-5563
Dennis Gaughan, Attorneys6161 S Park Ave

Hamburg, NY 14075

(716) 648-8000
John Osborn841 Broadway Ste 500

New York, NY 10003

(212) 375-8640
Marra Joseph A147 E 233rd St

Bronx, NY 10470

(718) 324-4834
Olga Berde Mahl & Associates32 Union Sq E Ste 415

New York, NY 10003

(212) 260-9655
William Sayegh Law Firm67 Gleneida Ave

Carmel, NY 10512

(845) 228-4200
Hedayati Law Group P.C.445 Broadhollow Rd Ste 400

Melville, NY 11747

(631) 880-6440
Sussman Edna10 E 40th St

New York, NY 10016

(212) 213-2173
Rekha Jain, Attorney1425 Jefferson Rd

Rochester, NY 14623

(585) 383-0931
Pozefsky Martin W25 Walton St

Saratoga Springs, NY 12866

(518) 587-9400
Apsan Law Offices, LLC.225 Broadway

New York, NY 10007

(877) 873-8510
Booth, Charles A88 Pine St

New York, NY 10005

(212) 269-4900
Esposito, Thomas R88 Pine St Fl 23

New York, NY 10005

(212) 269-4900
Richard V. Kanter, Attorney at Law555 Broadhollow Rd

Melville, NY 11747

(631) 845-1400
Clifford Chance LLP31 W 52nd St Lbby 3

New York, NY 10019

(212) 878-8000