Filing Bankruptcy in the Southern District of New York: What to Expect

If you’re overwhelmed by debt and live in Manhattan, the Bronx, Westchester, Rockland, Dutchess, Orange, or Ulster counties (including Poughkeepsie), you’ll likely file in the Southern District of New York (SDNY). This federal district handles thousands of cases annually.

Here’s what to expect—where to file, the process steps, key players, exemptions, and common pitfalls.

📍 Counties Served & Courthouse Locations

SDNY covers:

  • New York County (Manhattan)

  • Bronx County

  • Westchester, Rockland, Putnam

  • Dutchess, Orange, Sullivan, Ulster

📌 Filing Locations

  • Manhattan – One Bowling Green, NY 10004 (Manhattan & Bronx)

  • White Plains – 300 Quarropas St, White Plains, NY 10601 (Westchester, Rockland, Putnam, Orange)

  • Poughkeepsie – 355 Main St, Poughkeepsie, NY 12601 (Dutchess, Sullivan, Ulster)

Your filing location depends on where you’ve lived or done business for most of the past 180 days.

⚖️ Bankruptcy Chapters Available

  • Chapter 7 – Liquidation (for limited-income filers)

  • Chapter 13 – Reorganization/payment plan (for steady-income households)

  • Chapter 11 – Primarily for businesses or high-income individuals

🗂️ Step-by-Step Filing Process

  1. Pre-Filing Preparation

    • Credit counseling from an approved provider.

    • Compile financial documents: tax returns, pay stubs, etc.

    • Determine whether to file pro se or retain an attorney.

  2. Filing the Petition

    • File electronically or in-person.

    • Pay the filing fee (or request a waiver/payment plan).

    • Upon filing, your case gets a title, case number, and automatic stay to halt most collections.

  3. Trustee Assignment

    • A Chapter 7 or 13 trustee is appointed to review documents and protect creditors’ interests.

  4. 341 Meeting of Creditors

    • Generally held 30–45 days post-filing, often via Zoom.

    • You’ll answer questions under oath about finances.

  5. Financial Management Course

    • Required post-filing; must be completed before discharge.

  6. Resolution

    • Chapter 7: Discharge typically by day 90 after the 341 meeting.

    • Chapter 13: Bankruptcy court confirms your payment plan (usually within a few months).

🔐 New York Exemptions: Detailed Overview

In SDNY, you can choose either New York state exemptions or federal exemptions, but not both en.wikipedia.org+8midtownbankruptcy.com+8nolo.com+8debtlawyer.com. Pick the set that offers the most protection.

🏠 New York State Exemptions (effective April 2024) nolo.com+4midtownbankruptcy.com+4midtownbankruptcy.com+4

  • Homestead (Primary Residence)

    • $204,825 in NYC counties, Nassau/Suffolk, Rockland, Westchester, Putnam.

    • $170,700 in Dutchess, Albany, Columbia, Orange, Saratoga, Ulster.

    • $102,400 in other upstate counties.

  • Motor Vehicle

    • $5,500 of equity (up to $13,625 if vehicle is disability-modified).

  • Tools & Household Items

    • Tools: up to $4,075

    • Household items: $1,325 aggregate

  • Cash & Wildcard

    • Cash (if not using homestead): up to $6,825

    • Wildcard (without homestead): $1,325

  • Retirement & Public Benefits

    • All qualified plans (401k, IRA) fully protected

    • Social Security, unemployment, public assistance, disability, veteran benefits fully exempt

  • Wages & Income

    • 90% of earnings within 60 days pre-filing protected

    • Court-ordered child support or alimony reasonably needed

  • Personal Injury Settlements

    • Up to $8,550 for personal injury awards, plus future earnings/wrongful death protections

  • Other Protections

    • Personal property (stoves, religious texts, pets, clothing, etc.): up to $13,625

    • Life insurance cash-surrender values and burial plots protected under CPLR

🛡️ Federal Bankruptcy Exemptions (effective April 1, 2025) midhudsonbankruptcylawyers.com+9debtlawyer.com+9midtownbankruptcy.com+9starrandstarr.com+6midtownbankruptcy.com+6nolo.com+6en.wikipedia.org+4en.wikipedia.org+4midhudsonbankruptcylawyers.com+4midtownbankruptcy.com+1nolo.com+1nolo.com

  • Homestead: $31,575

  • Vehicle: $5,025

  • Jewelry: $2,125

  • Household goods: $800/item, $16,850 total

  • Tools of the trade: $3,175

  • Life insurance cash value: $16,850

  • Personal injury: $31,575

  • Wildcard: $1,675 + up to $15,800 unused homestead space

  • Retirement accounts: up to $1,711,975 (IRAs/qualified plans)

  • Support & public benefits fully protected

🚫 Common Mistakes to Avoid

  • Failing to disclose all assets or debts (can lead to dismissal or fraud charges)

  • Missing the 341 meeting

  • Not completing the mandatory education course

  • Choosing the wrong exemption set

  • Overlooking vehicle or vehicle-modification exemptions

  • Forgetting county-based homestead limits

👥 Key Players in Your SDNY Case

  • Bankruptcy Judge – Rules on motions and approves discharges/plans

  • Chapter 7/13 Trustee – Reviews assets and administers case

  • U.S. Trustee’s Office – Government oversight

  • Creditors – May object during trustee review or 341 hearing

  • Your Attorney – Helps you choose exemptions, files documents, represents you

✅ After Discharge

  • Collecting efforts must stop for dischargeable debts

  • Credit may dip initially, but typically recovers in 12–24 months

  • FHA, VA loans and credit cards often become available soon

🗂️ So, Which Exemption Set Should You Use?

  • Choose New York site exemptions if you own a home with equity—especially in NYC, Westchester, or Putnam, thanks to higher homestead limits

  • Choose Federal exemptions if your assets are largely personal property, retirement funds, or injury awards, especially with a high wildcard cap

Your attorney can run the numbers to determine the best fit.

📞 Need Help Filing in SDNY?

At Midtown Bankruptcy, we’ve helped clients across Manhattan, Bronx, Westchester, Dutchess (including Poughkeepsie), and Orange County navigate Chapter 7 and 13 filings—maximizing exemptions and protecting what matters.

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William Waldner
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