Find Bankruptcy Lawyers Near You in Brooklyn, NY

The typical cost for a bankruptcy lawyer in New York, particularly in Brooklyn, varies by case complexity and chapter. For a standard Chapter 7 case, attorney fees generally range from $1,500 to $3,500, with many lawyers offering flat-fee arrangements. Chapter 13 cases, which require more extensive plan preparation and court oversight, typically cost between $3,000 and $6,000, and these fees are often paid through the repayment plan itself over three to five years. Court filing fees are separate: $338 for Chapter 7 and $313 for Chapter 13, with installment payment options available upon court approval. Some attorneys offer free initial consultations and payment plans to spread out the cost before filing.

For those with limited income, pro bono and low-cost legal services are available through organizations like the New York Legal Assistance Group (NYLAG) and the City Bar Justice Center, which may cover some or all attorney fees. Additionally, the U.S. Bankruptcy Court for the Eastern District of New York provides a list of approved credit counseling agencies that charge reduced fees for the mandatory courses. This information is general and not legal advice; you should consult a qualified bankruptcy attorney to discuss your specific financial situation and costs.

Bankruptcy law in Brooklyn, New York, offers individuals and businesses a legal pathway to address overwhelming debt while retaining certain assets. The primary chapters for individuals are Chapter 7, which involves liquidation of non-exempt assets to discharge most unsecured debts, and Chapter 13, which allows debtors with regular income to reorganize debts through a court-approved repayment plan lasting three to five years. Chapter 11, typically used by businesses, provides a more complex reorganization framework, though it is also available for individuals with debt exceeding Chapter 13 limits. Choosing the right chapter depends on your income, asset profile, and debt type: Chapter 7 suits those with limited disposable income and few non-exempt assets, while Chapter 13 is ideal for those who want to keep their home or car and catch up on missed mortgage or auto payments over time.

New York law allows debtors to choose between state and federal bankruptcy exemptions, which protect certain property from liquidation. The New York State exemptions are often more generous for homeowners, particularly through the homestead exemption, which protects up to $179,950 of equity in a primary residence in Kings County (Brooklyn) as of 2025, provided the property is not a farm. For those who do not own a home, the federal exemptions may be more beneficial, offering a $27,900 homestead exemption (if not used for a residence) and a $1,475 wildcard exemption that can be applied to any property. New York also provides a vehicle exemption of up to $4,825 for one motor vehicle, and a personal property exemption of up to $5,000 for household goods, clothing, and other items. Specific state statutes, such as New York Debtor and Creditor Law sections 282 and 283, detail these exemptions, and a bankruptcy lawyer can help you determine which set maximizes your asset protection.

The means test is a critical hurdle for Chapter 7 eligibility, designed to prevent higher-income debtors from abusing the liquidation process. In New York, the median income for a single-person household is approximately $71,000 as of 2025, with adjustments for larger households; for a family of four, the median is around $104,000. If your income is below the median, you automatically pass the means test and qualify for Chapter 7. If your income exceeds the median, you must complete a detailed calculation of your disposable income over the past six months, subtracting allowed expenses based on IRS standards and actual living costs. If your disposable income after these deductions is less than $8,175 over five years, you may still qualify for Chapter 7; if it exceeds $13,650, you are presumed to have sufficient income to repay creditors and must file under Chapter 13 instead.

Filing for bankruptcy immediately triggers an automatic stay, which halts most creditor actions, including wage garnishments, foreclosure proceedings, repossession attempts, and harassing phone calls or letters. This stay provides immediate relief and gives you breathing room to work with your attorney. The timeline from filing to discharge varies by chapter: for Chapter 7, the process typically takes four to six months, with a meeting of creditors (341 meeting) occurring about 30 days after filing, and a discharge order issued shortly after. For Chapter 13, the repayment plan lasts three to five years, and the discharge is granted only after all plan payments are completed. Before filing, you must complete a mandatory credit counseling course from an approved agency, and after filing, you must complete a debtor education course to receive your discharge. These courses are available online or in person and typically cost between $10 and $50 each.

The costs of bankruptcy in Brooklyn include court filing fees and attorney fees. As of 2025, the filing fee for Chapter 7 is $338, and for Chapter 13 it is $313, though these fees can be paid in installments with court approval. Attorney fees for a straightforward Chapter 7 case in Brooklyn typically range from $1,500 to $3,500, while Chapter 13 cases, which require more extensive paperwork and court appearances, range from $3,000 to $6,000. Many attorneys offer payment plans, allowing you to pay fees over several months before filing. For those with limited income, pro bono resources are available through organizations such as the New York Legal Assistance Group (NYLAG) and the City Bar Justice Center, which provide free or low-cost bankruptcy assistance to eligible residents. Additionally, the U.S. Bankruptcy Court for the Eastern District of New York, which covers Brooklyn, maintains a list of approved credit counseling agencies and pro bono attorneys.

Life after bankruptcy involves rebuilding your financial standing, but the impact on your credit report lasts seven years for Chapter 13 and ten years for Chapter 7 from the filing date. During this time, you can take steps to improve your credit score, such as obtaining a secured credit card, making all payments on time, and keeping credit utilization low. It is important to note that not all debts are dischargeable in bankruptcy: student loans are generally not dischargeable unless you can prove undue hardship in an adversary proceeding, most tax debts from the last three years survive, and debts for child support, alimony, and fines for criminal acts remain payable. However, credit card debt, medical bills, personal loans, and most civil judgments are typically discharged. With careful planning and responsible financial habits, many Brooklyn residents successfully rebuild their credit and achieve long-term financial stability after bankruptcy.