Considering Bankruptcy?

Get a Fresh Financial Start with Chapter 7 Bankruptcy

If you are overwhelmed by credit card debt, medical bills, personal loans, or facing wage garnishment and creditor lawsuits — bankruptcy may be the most powerful legal tool available to you. The Law Office of Jay Meyers has helped over 2,000 New York and New Jersey residents permanently eliminate debt and reclaim their financial lives since 1992.

Jay Meyers is a federally designated debt relief agent — appointed by an Act of Congress to assist individuals seeking relief under the U.S. Bankruptcy Code. When you work with us, you get 30+ years of real bankruptcy experience, not a paralegal running your case.

How Bankruptcy Works in New York & New Jersey

Filing for bankruptcy is a structured legal process overseen by a federal bankruptcy court. In New York, cases are filed in the Eastern District of New York (EDNY) or the Southern District of New York (SDNY). New Jersey cases are filed in the District of New Jersey. Here is how the process works:

Step 1: Free Case Analysis

Before any papers are signed, we conduct a thorough review of your income, assets, debts, and expenses. We determine which chapter you qualify for, what assets are protected, and whether bankruptcy is truly your best option. We do not file cases that should not be filed.

Step 2: Credit Counseling

Federal law requires you to complete an approved credit counseling course within 180 days before filing. We provide you with an approved provider — it takes about an hour and can be done online.

Step 3: Filing the Petition

We prepare and file your bankruptcy petition, schedules, and supporting documents with the court. The automatic stay takes effect immediately upon filing — stopping all collection activity.

Step 4: The Meeting of Creditors (341 Meeting)

Approximately 3–5 weeks after filing, you attend a brief Meeting of Creditors — typically 5–10 minutes. You answer questions from the bankruptcy trustee under oath. We prepare you fully and attend with you.

Step 5: Discharge

For Chapter 7, your discharge is typically granted 3–4 months after filing. Your debts are permanently eliminated. For Chapter 13, you follow a 3–5 year repayment plan, then receive discharge of remaining eligible debts.

Chapter 7 vs. Chapter 13 — Which Is Right for You?

Chapter 7 — The Fresh Start

Chapter 7 is the most common form of consumer bankruptcy. It discharges most unsecured debts — credit cards, medical bills, personal loans, utility arrears — permanently and completely in as little as 90–120 days. There are no monthly payments to a trustee.

To qualify, your income must pass the New York or New Jersey means test. As of 2025, the median income threshold is approximately $71,393 for a single person and $135,475 for a family of four in New York. Assets are protected by generous state and federal exemptions.

Chapter 13 — The Reorganization

Chapter 13 allows you to keep all your assets while repaying a portion of your debts over 3–5 years through a court-confirmed plan. It is ideal when you:

• Earn too much income to qualify for Chapter 7
• Are behind on mortgage payments and want to save your home
• Have non-exempt assets you want to protect
• Have tax debts or student loan obligations to manage
• Filed Chapter 7 within the past 8 years

Chapter 13 also allows you to strip wholly unsecured second and third mortgage liens from your property — a powerful tool unavailable in Chapter 7.

What Happens to Your Assets?

This is the question clients ask most. The answer, in most cases, is: nothing happens to your assets. New York and New Jersey bankruptcy exemptions are generous and protect most of what everyday people own.

New York Exemptions (you choose NY State or Federal)

• Homestead (NYC & downstate): Up to $204,825 — Staten Island, all NYC boroughs, Nassau, Suffolk, Westchester, Rockland, Putnam
• Homestead (mid-Hudson): Up to $170,700 — Dutchess, Orange, Albany, Columbia, Saratoga, Ulster
• Homestead (upstate): Up to $102,400 — all remaining NY counties
• Vehicle: Up to $4,825 in equity
• Retirement accounts: 401(k), IRA, pension — fully protected up to $1,711,975
• Federal Wildcard: Up to $1,675 + $15,800 of unused homestead exemption — protects cash, tax refunds, and other property
• Household goods, clothing, tools of the trade — all protected

How Much Does Bankruptcy Cost in New York?

The total cost of filing bankruptcy in New York includes:

• Court filing fee: $338 for Chapter 7 / $313 for Chapter 13 (fee waivers available for qualifying low-income filers)
• Credit counseling & debtor education courses: $20–$50 total
• Attorney fees: Vary based on complexity of your case

We offer flexible payment arrangements and will never charge a fee that is not worth it for your situation. Contact us for a free consultation and we will give you a clear picture of all costs upfront.

How Long Does Bankruptcy Take?

• Chapter 7: Typically 3–5 months from filing to discharge
• Chapter 13: 3–5 years (the length of the repayment plan)
• Credit counseling (required): 1–2 hours, done online
• Time to stop collections: Immediately upon filing

What Debts Are — and Are Not — Discharged?

Dischargeable (can be eliminated):

• Credit card balances
• Medical and hospital bills
• Personal loans and payday loans
• Utility arrears
• Lease obligations (with some conditions)
• Civil court judgments (most)
• Some older income tax debts (3+ years old, properly filed)

Non-dischargeable (survive bankruptcy):

• Student loans (except in rare hardship cases)
• Recent income taxes (within 3 years)
• Child support and alimony
• Debts from fraud or intentional wrongdoing
• Criminal fines and restitution
• Most recent DUI-related debts

Bankruptcy FAQ