What is the bankruptcy means test?

The bankruptcy means test determines whether you qualify to file Chapter 7 bankruptcy. It compares your average monthly income over the past 6 months to your state's median income. If you're below the median, you automatically qualify. If above, you must pass a second part examining disposable income.

How much debt do you need to file bankruptcy?

There is no minimum debt amount required to file bankruptcy. However, most bankruptcy attorneys recommend filing only when debt exceeds what you can realistically repay within 5 years, typically $10,000 or more.

How long does bankruptcy stay on your credit report?

Chapter 7 bankruptcy stays on your credit report for 10 years from the filing date. Chapter 13 bankruptcy stays for 7 years. Both affect your ability to get new credit, but the impact diminishes over time as you rebuild.

What states does this calculator support?

BankruptcyByState.net supports bankruptcy means test calculations for all 50 states using current federal and state-specific median income figures.

What assets are at risk in a New York Chapter 7 bankruptcy?

In New York, assets most at risk are: home equity above $89,975, vehicle equity above $4,825, bank account balances above the wildcard of $1,175, non-retirement investment accounts, and rental or second properties.

Is my home safe in New York Chapter 7?

Your home is safe in New York Chapter 7 if your equity does not exceed the homestead exemption of $89,975 (Varies by county; up to $179,975 in NYC metro). If equity exceeds this amount, the trustee may require a sale or a buyout of the non-exempt portion.

Can the trustee take my car in New York bankruptcy?

The trustee can only liquidate a car in New York if your equity — market value minus loan balance — exceeds $4,825. Most financed vehicles have little or no equity and are fully protected.

How much cash can I keep in New York Chapter 7?

In New York, bank account balances and cash are protected only up to the wildcard exemption of $1,175. Amounts above this are potentially non-exempt and subject to trustee claim.

Are retirement accounts ever liquidated in New York bankruptcy?

No. All qualified retirement accounts (401(k), IRA, pension) are fully protected in New York Chapter 7. The trustee cannot liquidate retirement funds regardless of their value.

New York Non-Exempt Asset Calculator 2026 — What Will I Lose in Bankruptcy?

Before filing Chapter 7 in New York, it is essential to know whether any of your assets exceed New York's exemption limits — because a bankruptcy trustee can sell non-exempt assets to pay creditors. This calculator helps you enter your asset values and compare them against New York's 2026 exemption amounts to identify any liquidation risk.

The good news for most filers: the majority of consumer bankruptcy cases in New York are "no-asset" cases, meaning all assets are covered by exemptions and the trustee has nothing to sell. New York's homestead exemption covers $89,975 in equity (Varies by county; up to $179,975 in NYC metro); vehicle equity up to $4,825 is protected; all qualified retirement funds are fully protected. The most common assets at risk are rental properties, investment accounts, second vehicles, and cash savings above the wildcard amount.

New York 2026 Exemption Limits — Liquidation Risk Reference

Asset Type	New York Exemption Limit	Non-Exempt if Value Exceeds
Primary Residence Equity	$89,975	Equity above $89,975 (Varies by county; up to $179,975 in NYC metro)
Motor Vehicle	$4,825	Equity above $4,825
Retirement Accounts	100%	Fully exempt — no liquidation risk
Wildcard (any asset)	$1,175	Stack on top of specific exemptions
Personal Property / Household Goods	$11,975	Aggregate value above $11,975
Current Wages (unpaid)	90% of earnings or 30× minimum wage	Portion above protected percentage

Frequently Asked Questions

What assets are most commonly liquidated in New York Chapter 7 cases?

In New York, the most commonly liquidated assets include: non-homestead real estate (rental properties, vacation homes, undeveloped land); vehicle equity above $4,825 on a second or third vehicle; bank account balances above the wildcard allowance of $1,175; investment and brokerage accounts (non-retirement); and business interests or accounts receivable from self-employment. Household furnishings, clothing, and personal electronics are almost never liquidated because their resale value rarely exceeds exemption limits.

Can I transfer assets before filing bankruptcy in New York to protect them?

No. Transferring assets for less than fair market value within 2 years of filing (or longer under state fraudulent transfer law) is a fraudulent transfer and can result in the trustee recovering the asset and potentially the dismissal of your case or even criminal charges. Similarly, paying back family members ("insiders") within 1 year of filing is a preferential transfer that the trustee can recover. Do not transfer any assets before consulting a bankruptcy attorney.

What is the difference between exempt and non-exempt equity?

Equity is the market value of an asset minus what you owe on it. For a home worth $300,000 with a $250,000 mortgage, your equity is $50,000. New York's homestead exemption protects $89,975 in equity. If your equity is above that limit, the "non-exempt equity" (the amount above the exemption) is what the trustee can capture in Chapter 7. In Chapter 13, non-exempt equity determines the minimum you must pay to unsecured creditors over the plan term.