Not sure which chapter is right for you? We analyze your specific income, assets, and goals at no charge.
Call 718-273-2525 for a free consultation →The Core Difference in One Sentence
Chapter 7 wipes out most debts completely in 3–5 months. Chapter 13 reorganizes your debts into an affordable 3–5 year repayment plan. Both permanently stop creditor harassment, wage garnishment, and lawsuits the day you file.
Chapter 7 — The Fresh Start
- ✓ Completed in 3–5 months
- ✓ No monthly payments to trustee
- ✓ Most debts permanently eliminated
- ✓ Keep exempt assets (home, car, retirement)
- ✗ Must pass means test
- ✗ Cannot catch up mortgage arrears
Chapter 13 — The Reorganization
- ✓ Keep all your assets
- ✓ Catch up on mortgage arrears
- ✓ No income limit to qualify
- ✓ Strip off second mortgage liens
- ✗ Takes 3–5 years
- ✗ Monthly payments required
Who Qualifies for Chapter 7?
To file Chapter 7 in New York, you must pass the bankruptcy means test — a formula that compares your average monthly income over the past 6 months to the New York median income for your household size.
As of 2025, the New York median income thresholds are approximately:
- 1 person: $71,393
- 2 people: $90,000
- 3 people: $100,000
- 4 people: $135,475
If your income is below these amounts, you automatically qualify for Chapter 7. If above, a more detailed analysis of your allowable monthly expenses is conducted to determine whether you have disposable income that requires a Chapter 13 repayment.
Having a job does not disqualify you — many working people successfully file Chapter 7. What matters is whether your income, after accounting for allowed expenses, leaves you with surplus funds to repay creditors.
Get a Free Bankruptcy Case Review
Jay Meyers has filed over 2,000 bankruptcy cases in New York and New Jersey since 1992. One call will tell you exactly where you stand — no jargon, no pressure, no obligation.
Confidential • No obligation • Habla Español
When Chapter 13 Is the Better Choice
Chapter 13 is preferable — or required — in several situations:
1. You Are Behind on Your Mortgage
Chapter 7 does not let you catch up on mortgage arrears — it either keeps you current or leaves the foreclosure process to continue. Chapter 13 specifically allows you to spread mortgage arrears over the life of your plan, stopping foreclosure and restoring your payments to current over 3–5 years.
2. You Earn Too Much for Chapter 7
If your income exceeds the means test threshold and you have disposable income after expenses, you may be required to file Chapter 13 and repay a portion of your debts.
3. You Have Non-Exempt Assets You Want to Keep
In Chapter 7, a trustee can liquidate assets that are not protected by exemptions. In Chapter 13, you keep everything — you simply pay creditors the equivalent value through your plan.
4. You Have Tax Debt or Student Loans
While most tax debts and student loans are not dischargeable in Chapter 7, Chapter 13 can reorganize them into manageable payments and stop IRS collection activity for the plan period.
5. You Filed Chapter 7 Recently
If you received a Chapter 7 discharge within the past 8 years, you cannot file Chapter 7 again. Chapter 13 may still be available after a 4-year wait.
The New York Bankruptcy Courts
Cases for Staten Island, Brooklyn, and Queens residents are typically filed in the Eastern District of New York (EDNY) bankruptcy court. Manhattan and the Bronx cases go to the Southern District of New York (SDNY). New Jersey cases are handled in the District of New Jersey. We handle cases in all three courts.
Get a Free Bankruptcy Case Review
Jay Meyers has filed over 2,000 bankruptcy cases in New York and New Jersey since 1992. One call will tell you exactly where you stand — no jargon, no pressure, no obligation.
Confidential • No obligation • Habla Español
Frequently Asked Questions
Which chapter of bankruptcy is better for me?
It depends on your income, assets, and goals. Chapter 7 is faster (3-5 months) and eliminates debt completely — ideal if your income is below the means test threshold and your assets are protected by exemptions. Chapter 13 is better if you earn too much for Chapter 7, are behind on mortgage payments, or have non-exempt assets you want to keep.
Can I convert from Chapter 13 to Chapter 7?
Yes — if your circumstances change (job loss, income reduction) you can convert your Chapter 13 case to Chapter 7, provided you now meet the means test. Conversely, if a Chapter 7 trustee identifies non-exempt assets, you can sometimes convert to Chapter 13 to protect them.
How does the bankruptcy means test work in New York?
The means test compares your average monthly income over the past 6 months to the New York median income for your household size. If below the median (~$67K for one person, ~$108K for a family of four in 2025), you automatically qualify for Chapter 7. If above, a detailed expense analysis determines whether you have excess disposable income that would make Chapter 13 required.
How long does Chapter 13 take?
Chapter 13 requires a 3 to 5-year repayment plan, confirmed by the court. The length depends on your income — if above state median, 5 years is required; if below, 3 years may suffice. At the end of the plan, remaining eligible debts are discharged.
Can I file Chapter 7 if I filed before?
You must wait 8 years between Chapter 7 discharges, 4 years between a Chapter 7 and then filing Chapter 13, and 2 years between Chapter 13 filings. Previous filings do not prevent you from seeking protection — they just affect timing.