No, the new bankruptcy laws do not greatly affect the amount of people able to file for bankruptcy under New York Bankruptcy Law. The new bankruptcy laws make it more difficult to file a liquidating bankruptcy under Chapter 7 but if a filer does not qualify for Chapter 7, they may still qualify for Chapter 13 bankruptcy. However, it is estimated that up to 85% of those filing for bankruptcy under the old laws governing Chapter 7 would still be able to file for Chapter 7 bankruptcy under the new bankruptcy laws. The process has been made more complicated under the new bankruptcy laws because additional forms must be completed by lawyers and clients. This increases the time taken to complete the filing process and thus increases the cost to file, but in most instances, the new bankruptcy laws will not change a person’s ability to obtain a bankruptcy discharge in New York.

(Courtesy of Association of the Bar of the City of New York)