Income determines which chapter you qualify for and how much you pay. Here are the current thresholds for New York residents filing in the S.D.N.Y.
New York's median income for a 1-person household is $66,973; 2 persons $82,282; 3 persons $97,878; 4 persons $119,164. If your household income is below the median, you automatically qualify for Chapter 7. If above, you may still qualify after the means test deducts allowed expenses.
| Household Size | Annual Median | Monthly | Chapter 7 | Chapter 13 Plan Length |
|---|---|---|---|---|
| 1 | $66,973 | $5,581 | Auto-qualify if below | 3 years if below |
| 2 | $82,282 | $6,857 | Auto-qualify if below | 3 years if below |
| 3 | $97,878 | $8,157 | Auto-qualify if below | 3 years if below |
| 4 | $119,164 | $9,930 | Auto-qualify if below | 3 years if below |
Add $10,300 for each additional household member. Figures published by the U.S. Trustee Program, updated periodically.
The means test uses your average monthly income from the 6 full calendar months before filing. It includes:
Timing strategy: Because the test uses a 6-month lookback, filing during a period of lower income (after job loss, end of seasonal work, after a bonus period ends) can help you qualify for Chapter 7.
Being above the median does not automatically disqualify you from Chapter 7. The second part of the means test subtracts allowed expenses from your income. New York's high cost of living means many above-median filers still pass after deducting:
New York's median for 1 person is $66,973. Below = auto-qualify. Above-median filers may still qualify after expense deductions. See Chapter 7 eligibility for details.
No ceiling. Income determines your plan length (3 or 5 years) and payment amount, not eligibility. The debt limit is $2,750,000. See Chapter 13 eligibility.
No. If you earn too much for Chapter 7, file Chapter 13. If debts exceed Chapter 13 limits, file Chapter 11. There is always an option.
If you are married and not filing jointly, your spouse's income is included on the means test form but is then subtracted if the spouse is not paying for household expenses. A non-filing spouse's income that contributes to household expenses is counted.
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