New York Chapter 7 Means
Test Calculator

The Chapter 7 means test determines whether your household income is low enough to file for Chapter 7 bankruptcy in New York. Created by the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), the test compares your average monthly income over the past six months to the median income for a household of your size in New York.

If your income falls below the New York median, you automatically qualify for Chapter 7 without further analysis.

New York bankruptcy cases are filed in the Northern, Southern, Eastern, Western Districts of New York. The Chapter 7 filing fee is $338, which can be paid in installments or waived for filers below 150% of the federal poverty guidelines.

New York's bankruptcy filing rate is roughly in line with the national average.

Successfully passing the means test and receiving a Chapter 7 discharge eliminates most unsecured debts — credit cards, medical bills, personal loans, and utility arrears — typically within 3 to 6 months of filing. However, certain debts survive bankruptcy: student loans (absent undue hardship), recent tax obligations, domestic support obligations (child support and alimony), and debts arising from fraud or willful injury.

Key statutory reference: SCPA §§ 2307, 2110.

New York bankruptcy cases are filed in four districts: Southern (Manhattan/White Plains), Eastern (Brooklyn/Long Island), Northern (Albany/Utica/Syracuse), and Western (Buffalo/Rochester). The U.S.

Trustee's offices in New York City (Region 2, also covering Connecticut and Vermont) oversee the Chapter 7 trustee panel. New York has opted out of federal exemptions.

New York's homestead exemption varies significantly by county — $179,975 in most upstate counties, $299,975 in downstate counties (Manhattan, Brooklyn, Queens, Bronx, Staten Island, Nassau, Suffolk, Westchester, Rockland, Putnam). New York imposes a state income tax (graduated up to 10.9%); state income tax debts for returns filed 3+ years pre-petition are generally dischargeable.

The Southern and Eastern Districts handle massive case volumes driven by New York City's population density.

The U.S. Trustee Program publishes updated median income figures that determine whether you pass the Chapter 7 means test in New York.

For the current period, the New York median income thresholds are: $60,372 for a 1-person household, $78,300 for a 2-person household, $87,768 for a 3-person household, and $104,736 for a 4-person household. For each additional household member beyond four, add approximately $9,900 to the 4-person figure.

These figures represent annualized gross income — meaning all income received in the six calendar months before filing, doubled. Income includes wages, salary, tips, overtime, bonuses, self-employment income, rental income, pension distributions, unemployment benefits, and contributions from non-filing household members.

Social Security retirement and disability benefits are excluded from the calculation in most courts, which can significantly help retirees qualify.

New York's median income thresholds are among the higher in the nation, reflecting the state's above-average cost of living. This means New York residents can earn more and still qualify for Chapter 7 compared to residents of lower-income states.

Use this New York Chapter 7 means test calculator to estimate whether household income is below the New York median income or whether the full Chapter 7 means test expense calculation is required before bankruptcy filing. Enter every source of gross income received during the six full calendar months before the Chapter 7 filing month, then identify household size, New York county, secured debt payments (mortgage, car loan), unsecured debt totals (credit cards, medical bills, personal loans), priority debts, health insurance premiums, taxes, child care costs, domestic support payments, and unusual medical or employment expenses.

Those inputs feed both the Chapter 7 means test screen and the deeper Chapter 13 disposable-income calculation the bankruptcy trustee will run against your bankruptcy filing.

The Chapter 7 means test calculator is strongest when the income window is exact. A New York Chapter 7 bankruptcy filing in June looks at December through May income; a Chapter 7 filing in July looks at January through June income.

If a bonus, overtime month, severance payment, or business distribution falls out of the six-month window by waiting a few weeks, the New York means test result can change enough to flip the household from above-median to below-median — which is the difference between an automatic Chapter 7 means test pass and a full Form 122A-2 expense test before the bankruptcy court will allow Chapter 7 debt discharge instead of routing the case into Chapter 13.

If the first screen lands above the New York median income, do not assume Chapter 7 bankruptcy is impossible. The second Chapter 7 means test calculation applies IRS local standards, secured debt deductions (mortgage on exempt property protected by the New York homestead exemption, vehicle loan), priority tax and support deductions, health insurance, child care, and other allowed expenses before the bankruptcy trustee decides whether you qualify for Chapter 7 debt discharge or whether Chapter 13 is the right path.

Compare the Chapter 7 result with Chapter 13 before filing, especially when a home protected by the New York homestead exemption, a vehicle, a tax refund, or any non-exempt property is at risk in the bankruptcy filing — a bankruptcy attorney can quickly model both Chapter 7 and Chapter 13 against your New York exempt property schedule before you commit to a chapter.

Earning above the New York median income does not automatically disqualify you from Chapter 7 — it simply triggers the second part of the means test. In this phase, you subtract IRS-standardized living expenses from your current monthly income to determine your "disposable income." If your monthly disposable income is below $167.08 (approximately $10,025 over 60 months), you still pass the means test and can file Chapter 7.

The IRS expense standards used in the means test include national standards for food, clothing, personal care, and miscellaneous expenses; local standards for housing and utilities based on your New York county; and local standards for transportation. You also deduct actual secured debt payments (mortgage, car loan), priority debt payments (back taxes, domestic support), mandatory payroll deductions (taxes, Social Security, health insurance), and certain other allowable expenses like child care, health care beyond insurance, and court-ordered payments.

Many above-median filers in New York still qualify for Chapter 7 after deductions. Homeowners with significant mortgage payments, families with high medical costs, and filers with substantial student loan payments often find their disposable income drops below the threshold.

A bankruptcy attorney can run a preliminary means test calculation to determine whether you'll pass before you commit to filing.

For a more reliable New York Chapter 7 means test calculator result, separate your six-month income from your monthly budget. The means test looks backward at income received before filing, then applies forward-looking deductions.

Mixing those two time periods is one of the most common reasons a self-run calculation looks different from an attorney's Form 122A review.

If your income recently changed because of a layoff, overtime cut, medical leave, divorce, or business slowdown, filing date matters. Waiting one or two months can remove a high-income month from the six-month average, while filing too soon can make the calculator overstate your current ability to repay debts.

A New York means test calculator is a planning tool, but the bankruptcy case is decided from the official bankruptcy forms filed with the bankruptcy court. Form 122A-1 is the first bankruptcy form.

It reports current monthly income, household size, household income, and the income limit for New York. If income exceeds the median, Form 122A-2 performs the full Chapter 7 means test calculation.

For Form 122A-1, use the average monthly income received during the six full calendar months before the month of filing. Include gross income before payroll deductions, regular contributions from other household members, unemployment, rental income, pension income, and other recurring income.

Social Security benefits are generally excluded from means test calculations, and some filers with primarily business debts may be exempt from the means test because their debt is not primarily consumer debt.

For Form 122A-2, above-median New York filers enter allowable expenses, secured debt payments, priority tax or support obligations, health insurance, child care, and other deductions recognized by the Bankruptcy Code. The goal is to estimate disposable income and determine whether the debtor can repay unsecured debt in Chapter 13 bankruptcy rather than receive a Chapter 7 discharge.

Keep income and expense information organized before you file for bankruptcy: pay stubs, bank statements, profit-and-loss records, mortgage or rent records, vehicle loan statements, tax returns, support orders, insurance premiums, medical expenses, and a creditor list. A bankruptcy attorney can check whether you qualify for Chapter 7 bankruptcy, whether you pass the means test, and whether debt settlement or Chapter 13 is a more realistic debt relief strategy.

New York has opted out of the federal bankruptcy exemptions, meaning filers must use New York's state exemption system to protect their property in Chapter 7. This is an important distinction — approximately two-thirds of states have opted out, each creating their own exemption framework.

Under New York's exemption system, the homestead exemption protects $179,975–$299,975 (county-dependent) of equity in your primary residence. The vehicle exemption covers $4,825.

New York also provides a wildcard exemption of $1,150 plus unused homestead exemption that can be applied to any property. Retirement accounts (401(k), IRA, pension) are fully exempt under federal law regardless of state exemptions, with traditional and Roth IRAs protected up to approximately $1.5 million.

New York's homestead exemption of $179,975–$299,975 (county-dependent) is above average nationally, providing substantial protection for homeowners.

Filing Chapter 7 in New York requires completing the means test (Official Forms 122A-1 and 122A-2), gathering financial documentation, taking a credit counseling course from an approved agency, and submitting the bankruptcy petition to the Northern District of New York Bankruptcy Court (or the applicable district). The filing fee is $338.

Required documents include 6 months of pay stubs, the most recent tax return, bank statements, a list of all debts, and a complete inventory of assets and property.

Within 30 to 45 days of filing, you will attend a Meeting of Creditors (341 meeting) where the Chapter 7 trustee and any attending creditors can ask questions about your financial situation and petition. In practice, most 341 meetings in New York last 5 to 10 minutes and creditors rarely appear for consumer bankruptcy cases.

You must bring a government-issued photo ID and proof of Social Security number. After the meeting, you must complete a financial management course (debtor education) before the court will issue your discharge.

The typical Chapter 7 case in New York takes 3 to 6 months from filing to discharge. Most consumer Chapter 7 cases are "no-asset" cases, meaning the trustee determines that all of the debtor's property is exempt and there is nothing to distribute to creditors.

In asset cases — where the debtor owns non-exempt property — the process takes longer as the trustee liquidates non-exempt assets and distributes proceeds. An experienced New York bankruptcy attorney can usually predict whether a case will be no-asset before filing.

Before relying on any bankruptcy calculator, collect pay stubs, bank statements, tax returns, vehicle loan statements, mortgage or rent records, health insurance costs, child care bills, support orders, and documentation for unusual medical or employment expenses. Those records determine whether the calculator should use below-median treatment, above-median deductions, or a Chapter 13 comparison.

If you don't pass the Chapter 7 means test in New York, Chapter 13 bankruptcy offers an alternative path to debt relief. Chapter 13 allows you to keep all of your property while repaying a portion of your debts through a 3- to 5-year payment plan.

The plan duration depends on income: filers below the New York median income qualify for a 3-year plan, while above-median filers must commit to 5 years. At the end of the plan, remaining eligible unsecured debts are discharged.

Chapter 13 may be preferable to Chapter 7 in New York even if you pass the means test in certain situations: if you're behind on mortgage payments and want to cure the arrears over the plan period; if you have non-exempt property you want to keep (you can protect it by paying its value to creditors through the plan); if you have debts that cannot be discharged in Chapter 7 (such as certain tax obligations); or if you received a Chapter 7 discharge within the past 8 years.

Before filing any bankruptcy in New York, consider alternatives such as debt negotiation or settlement, credit counseling and debt management plans, and state law remedies that may protect income and property from creditors. New York's wage garnishment limits, bank account exemptions, and other debtor protections may provide sufficient relief without bankruptcy.

The pre-filing credit counseling requirement ensures that every filer has explored these alternatives with a certified counselor before proceeding.

The decision between Chapter 7 and Chapter 13 in New York comes down to three factors: the means test threshold, how your household income compares to the New York median income ($60,372 for a 1-person household, $104,736 for a family of four in 2026), and your ability to repay unsecured debt over time. Filers below the New York median income usually default to Chapter 7; filers above the median often end up in Chapter 13 unless allowed expenses bring disposable income under the threshold.

The bankruptcy trustee plays different roles in each chapter. A Chapter 7 trustee liquidates non-exempt property and uses the proceeds to pay creditors, then the bankruptcy court issues a debt discharge in 3–6 months.

A Chapter 13 trustee administers a 3- to 5-year repayment plan, collecting your monthly payment and distributing it among creditors before discharge. New York bankruptcy filings go through the Northern, Southern, Eastern, Western Districts of New York, and a bankruptcy attorney typically charges $1,000–$2,500 for Chapter 7 and $3,500–$6,000 for Chapter 13 in New York.

Exempt property in New York determines what you keep. The New York homestead exemption protects $179,975–$299,975 (county-dependent) of equity in your primary residence; the vehicle exemption covers $4,825; retirement accounts are fully protected under federal law.

Secured debt (mortgage, car loan) survives Chapter 7 unless you surrender the collateral — you keep paying or you lose the asset. Unsecured debt (credit cards, medical bills, personal loans) is the category that actually gets discharged in Chapter 7 or partially repaid in Chapter 13.

New York has opted out of the federal exemption system, so New York state exemptions are mandatory.

If you qualify for Chapter 7 under the means test, the New York Bankruptcy Exemption Calculator shows exactly which assets you can keep. If Chapter 7 isn't available, the New York Chapter 13 Payment Plan Calculator estimates your monthly repayment obligation.

And if protecting your home equity is the priority, the New York Homestead Exemption Calculator covers New York's specific exemption amount and any acreage or residency limits.