08/17/2026
The bankruptcy means test sounds like a math problem. For many New York business owners, it isn't even the right question.
We see this all the time. A restaurant owner in Queens or an importer in Brooklyn comes to us worried they earn too much to qualify for Chapter 7. They've already assumed bankruptcy isn't an option because they think they'll fail the means test.
But before looking at income, there's another question that may matter even more: Is most of your debt business debt or consumer debt?
For many business owners, commercial loans, vendor balances, business leases, equipment financing, and other business obligations make up the majority of what they owe. That can significantly affect how the bankruptcy analysis begins.
That's why understanding your debt is just as important as understanding your income. Starting with the wrong question can lead you toward a bankruptcy chapter that may not be the best fit for your situation.
At J. Singer Law Group, we help New York business owners evaluate their options before they make decisions that could affect their financial future.
If your business is struggling with debt, start with the right conversation.
Call (917) 905-8280.
https://www.singerlawgroup.com/bankruptcy-law/chapter-7
