For many Poles living on Staten Island, the specter of bankruptcy in the USA raises fears not only of losing a home in New York, but also an apartment, a plot of land, or an inheritance left in Poland. In 2026, however, bankruptcy regulations are more predictable than ever – provided there is full transparency and a strategic choice of the debt relief path.
Chapter 7 in 2026: Higher income thresholds and a chance for a fresh start
Since November 2025, the income thresholds for those applying for liquidation bankruptcy (Chapter 7) in New York State have undergone a favorable change.
- New limits: Currently, individuals earning even over 71,000 USD (for single-person households) may qualify for the total discharge of debts from credit cards, personal loans, or medical bills.
- Means Test: Thanks to the update of these thresholds, more and more families on Staten Island are gaining access to quick debt relief without the need to repay creditors.
Protecting a home on Staten Island: How does the “Homestead Exemption” work?
If you own a house or a condominium on Staten Island, the New York Homestead Exemption is your strongest shield.
- Capital protection: The law protects a significant portion of your equity. This means that in most cases, you can get rid of overwhelming debts while retaining the right to your property and continuing to pay your mortgage under the existing terms.
Real estate in Poland: Can an American trustee seize an apartment in the country?
This is a question almost every Polish debtor in the USA asks themselves. Although an American Trustee has the theoretical right to include foreign assets in the bankruptcy estate, in practice, the situation looks optimistic:
- Logistical barriers and costs: Taking over real estate in Białystok, Kraków, or Warsaw involves huge costs for sworn translations, expert appraisals, and the necessity of hiring lawyers in Poland.
- Lack of profitability (Meaningful Distribution): For an American court and trustee, selling an apartment in Poland is often unprofitable after deducting the costs of the process and local taxes. If the profit for creditors would be negligible, the trustee usually waives claims to these assets.
- Local exemptions: Some assets in Poland can be protected using so-called wildcard exemptions, i.e., universal amounts exempt from seizure.
Transparency – Your only path to safe debt relief
The key to keeping assets in Poland is their full disclosure in the bankruptcy petition.
- Concealment of assets: This is the shortest path to being charged with bankruptcy fraud, which results not only in the rejection of the application but also in criminal liability.
- Legal strategy: Honestly declaring real estate in Poland, supported by appropriate valuation and arguments about the lack of profitability of enforcement, usually ends with these assets remaining in the debtor’s hands.
As your attorney, I will help you reliably prepare the documentation so that your home on Staten Island and your assets in Poland remain safe, while you start a life without debt.