For Chapter 7, you can pay my $4,000 fee in installments, but I require $1,000 before starting work. There is also a $335 filing fee. Part of my $6,000 Chapter 13 fee may be paid during the 3- to 5-year plan. The Chapter 13 filing fee is $310.
In Brooklyn, the meeting is next to the Post Office Building downtown; in Manhattan, it's at 80 Broad Street. The trustee will verify your Social Security Number, petition and schedules. In Chapter 7, if the trustee finds no property to sell and pay your creditors, he or she will close the meeting. Your discharge will occur in a month or two. In Chapter 13, you make monthly payments for either 3 or 5 years.
Filing Chapter 7 will save you from liability for the excess of the note over the current value of the medallion. You paid $200K, you owe $800K, the medallion is now worth $150K. In foreclosure you'll still be liable for $650K. Chapter 7 will erase that debt, but you will not keep your medallion.