New Jersey Chapter 7 Bankruptcy — Your Filing Guide
What This Document Does
This petition asks the federal bankruptcy court to wipe out (discharge) your unsecured debts like credit cards, medical bills, and personal loans. You keep your exempt property, and most of your debts are eliminated in about 4-6 months.
When to Use This
- You have debts you cannot pay
- Your income is below the New Jersey median (you pass the "means test")
- You want to keep your home, car, and basic possessions
- You're not trying to save a business
Before You File
Gather These Documents:
- [ ] Last 2 years of tax returns
- [ ] Pay stubs from the last 6 months
- [ ] Bank statements from the last 6 months
- [ ] List of all debts (credit cards, medical bills, loans)
- [ ] List of all property (home, car, bank accounts, furniture)
- [ ] Vehicle registration and proof of value (Kelley Blue Book)
- [ ] Proof of income (pay stubs, Social Security, unemployment)
- [ ] $338 filing fee OR application to pay in installments
Complete Credit Counseling:
You MUST complete a credit counseling course BEFORE filing. It takes about 1-2 hours online.
Approved providers:
- Debtorcc.org (~$15-25)
- Access Counseling (~$15-25)
- Money in Motion (~$15-25)
Print your certificate — you'll need it to file.
Step-by-Step Filing
Step 1: Complete the Petition and Schedules
Fill in every blank:
- Your name and address — use the exact name on your ID
- All other names used — maiden name, married names, nicknames for business
- All your property — home, car, bank accounts, furniture, retirement
- All your debts — list EVERY creditor, even ones you want to keep paying
- Your income — from all sources for the last 6 months
- Your expenses — rent, food, utilities, transportation, medical
Step 2: Choose Your Exemptions
New Jersey lets you choose between state exemptions or federal exemptions — pick whichever protects more of your property.
New Jersey State Exemptions:
- Home: Up to $25,150 in real or personal property used as residence
- Car: Up to $4,450 in one motor vehicle
- Household goods: Up to $14,875 total ($700 per item)
- Jewelry: Up to $1,875
- Tools of trade: Up to $2,825
- Retirement accounts: Fully protected
- Wildcard: Up to $1,475
Federal Exemptions (Same amounts)
Most New Jersey residents choose federal exemptions because they're often more favorable.
Step 3: File with the Bankruptcy Court
Where to file:
- District of New Jersey — Camden: 401 Market Street, Camden, NJ 08102
- District of New Jersey — Newark: 50 Walnut Street, Newark, NJ 07102
- District of New Jersey — Trenton: 402 East State Street, Trenton, NJ 08608
Bring:
- Completed petition and all schedules
- Credit counseling certificate
- Pay stubs from last 60 days
- Tax return from last year
- $338 filing fee (cash, money order, or certified check)
Step 4: Attend the Meeting of Creditors
About 30 days after filing, you'll attend a short meeting with the bankruptcy trustee. Creditors may attend but usually don't.
Bring:
- Photo ID (driver's license or passport)
- Social Security card
- Bank statements
- Vehicle registration
- Proof of income
What to expect:
- The trustee will ask you questions under oath
- Questions like: "Did you list all your debts?" "Is all your information accurate?"
- The meeting usually lasts 5-10 minutes
Step 5: Complete Debtor Education
After filing (but before discharge), you MUST complete a debtor education course.
- Takes about 2 hours online
- Cost: ~$15-50
- Print your certificate and file it with the court
Step 6: Receive Your Discharge
About 60-90 days after the Meeting of Creditors, you'll receive your discharge order. This wipes out most unsecured debts.
What Bankruptcy Can and Cannot Do
Bankruptcy CAN eliminate:
- Credit card debt
- Medical bills
- Personal loans
- Payday loans
- Old utility bills
- Some older tax debts
Bankruptcy CANNOT eliminate:
- Student loans (almost never)
- Child support and alimony
- Recent taxes (last 3 years)
- Debts from fraud
- Debts from DUI/injury
- Criminal fines
After Bankruptcy
Rebuilding Credit:
- Your credit score will drop initially
- Get a secured credit card
- Pay all bills on time
- Check your credit report for errors
- Most people can get a car loan within 1-2 years
- FHA mortgage possible 2 years after discharge
Frequently Asked Questions
Q: Will I lose my home?
A: Probably not. New Jersey's homestead exemption protects up to $25,150 in equity. If you're behind on payments, talk to a lawyer about Chapter 13.
Q: Will I lose my car?
A: Probably not. New Jersey protects up to $4,450 in vehicle equity. If your car is worth less than you owe, you can usually keep it by continuing payments.
Q: Can I keep my retirement account?
A: Yes. 401(k)s, IRAs, and pensions are fully protected in bankruptcy.
Q: Will everyone know I filed?
A: Bankruptcy is public record, but it's unlikely anyone will find out unless they search.
Legal Aid Resources
If you need free or low-cost legal help:
- Legal Services of New Jersey: (732) 529-7200
- Northeast New Jersey Legal Services: (201) 792-6363
- South Jersey Legal Services: (856) 583-2950
- LSC Finder: https://www.lsc.gov/about-lsc/what-legal-aid/find-legal-aid
Disclaimer
This guide and the bankruptcy petition template are for informational purposes only and do not constitute legal advice. Bankruptcy law is complex. For legal advice specific to your situation, contact a licensed attorney or the legal aid organizations above.
Not a law firm. Not your attorney. No attorney-client relationship exists.