title: "New Jersey Bankruptcy Chapter 7 - LSC-Grade Legal Packet"
state: "NJ"
category: "Bankruptcy"
date: "2026-03-20"
price: "$97"
lsc_grade: true
New Jersey Chapter 7 Bankruptcy Filing Packet
Jurist-Diction | Attorney-Drafted Legal Documents
This packet is for informational purposes only and does not constitute legal advice. For legal advice, contact a licensed New Jersey attorney or legal aid organization.
1. Eligibility Checker
Can You File Chapter 7 Bankruptcy in New Jersey?
Answer these questions to see if you qualify:
Residency Requirements:
- [ ] Have you lived in New Jersey for at least 91 of the last 180 days?
- [ ] If you lived in multiple states, have you spent the majority of the last 180 days in New Jersey?
Means Test Requirements (11 U.S.C. § 707(b)):
- [ ] Is your household income below the New Jersey median income for your household size?
| Household Size | New Jersey Median Income (2026) |
|---|---|
| 1 person | $79,284 |
| 2 people | $97,598 |
| 3 people | $119,238 |
| 4 people | $142,582 |
| 5+ people | Add $9,900 per additional person |
If your income is ABOVE the median, you must complete the full means test calculation to determine if you have enough "disposable income" to repay some debts in Chapter 13 instead.
Other Requirements:
- [ ] Have you NOT filed a Chapter 7 bankruptcy in the last 8 years?
- [ ] Have you NOT filed a Chapter 13 bankruptcy in the last 6 years?
- [ ] Did you NOT have a bankruptcy case dismissed in the last 180 days for certain reasons?
- [ ] Have you completed a credit counseling course within 180 days before filing?
If you checked all boxes above, you likely qualify to file Chapter 7 bankruptcy in New Jersey.
What Debts Can Be Discharged (Wiped Out)?
| Can Be Discharged | Cannot Be Discharged |
|---|---|
| Credit card debt | Most student loans |
| Medical bills | Recent taxes (last 3 years) |
| Personal loans | Child support/alimony |
| Old utility bills | Debts from fraud |
| Repossession deficiencies | Debts from DUI |
| Some older tax debts | Criminal restitution |
| Payday loans | Debts not listed in filing |
Is Chapter 7 Right for You?
Chapter 7 is best if:
- You have mostly unsecured debt (credit cards, medical bills)
- Your income is below the New Jersey median
- You don't have significant assets to protect
- You want a fresh start quickly (4-6 months)
Consider Chapter 13 if:
- Your income is above the median
- You're behind on mortgage or car payments you want to keep
- You have significant assets to protect
- You have debts that can't be discharged in Chapter 7
2. Required Forms
Official Bankruptcy Forms (Required for Everyone)
| Form Number | Form Name | Purpose |
|---|---|---|
| 101 | Voluntary Petition | Starts your bankruptcy case |
| 106A/B | Schedule A/B: Property | List everything you own |
| 106C | Schedule C: Exemptions | Claim property you can keep |
| 106D | Schedule D: Creditors with Secured Claims | List secured debts (mortgage, car) |
| 106E/F | Schedule E/F: Credititors with Unsecured Claims | List unsecured debts |
| 106G | Schedule G: Executory Contracts and Unexpired Leases | List leases and contracts |
| 106H | Schedule H: Codebtors | List anyone who cosigned your debts |
| 106I | Schedule I: Your Income | List current monthly income |
| 106J | Schedule J: Your Expenses | List monthly expenses |
| 106Dec | Declaration About Schedules | Sign under penalty of perjury |
| 106Sum | Summary of Schedules | Summary of all schedules |
| 107 | Statement of Financial Affairs | Answer questions about recent financial history |
| 122A-1 | Chapter 7 Statement of Your Current Monthly Income | Part of means test |
| 122A-2 | Chapter 7 Means Test Calculation | Required if income above median |
Additional Required Forms
| Form | Purpose | |
|---|---|---|
| Form 423 | Certification of Credit Counseling | Proof you took the course |
| Form 427 | Notice of Requirement to File Statement of Completion | Acknowledges debtor education requirement |
| Statement of Intention | What you plan to do with secured property (keep or surrender) |
New Jersey-Specific Requirements
| Document | Purpose | Where to Obtain |
|---|---|---|
| Pay stubs for last 7 months | Proof of income | Your employer |
| Most recent tax return | Required by trustee | Your records or IRS |
| Bank statements | Last 2-3 months typically | Your bank |
| Vehicle registration | Proof of ownership | Your records |
| Mortgage statements | Proof of debt | Your lender |
| Local Chapter 7 Trustee Questionnaire | Trustee-specific requirements | Your assigned trustee |
3. Step-by-Step Filing Instructions
Before You File: 60-90 Days Before
Step 1: Complete Credit Counseling
- Find an approved credit counseling agency at: https://justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm
- Complete the 60-90 minute course (online or phone)
- Receive your certificate of completion (Form 423)
- Certificate is valid for 180 days
Step 2: Gather Your Documents
- All pay stubs from the last 7 months
- Last 2-3 years of tax returns
- Bank statements for last 6 months
- List of all debts (creditor names, addresses, amounts)
- List of all assets (property, vehicles, bank accounts, household goods)
- Vehicle titles and registration
- Mortgage statements and property tax records
- Retirement account statements
- Any lawsuits or judgments against you
Step 3: Complete the Means Test
- Get your average monthly income for the last 6 months
- Compare to New Jersey median income for your household size
- If below median: You qualify, no further calculation needed
- If above median: Complete Form 122A-2 to calculate allowed expenses
Filing Your Case
Step 4: Complete All Bankruptcy Forms
- Fill out Form 101 (Voluntary Petition)
- Complete Schedules A/B through J
- Complete Statement of Financial Affairs (Form 107)
- Complete means test forms (122A-1 and 122A-2 if required)
- Sign the Declaration (Form 106Dec)
Step 5: Determine Where to File
New Jersey has one bankruptcy court district with three divisional offices:
| Your County | Where to File |
|---|---|
| Bergen, Essex, Hudson, Morris, Passaic, Sussex, Warren | Newark Division |
| Burlington, Camden, Gloucester, Mercer, Monmouth, Ocean, Salem, Atlantic, Cape May, Cumberland | Camden Division |
| Hunterdon, Middlesex, Monmouth, Somerset, Union | Trenton Division |
Step 6: File Your Petition
- File online via CM/ECF (requires account) OR
- File in person at the bankruptcy clerk's office
- Pay the filing fee: $338 (Chapter 7)
- You can apply to pay in installments or waive the fee if your income is below 150% of poverty level
Step 7: Submit Required Documents to Trustee
- Within 14 days of filing, send to your assigned trustee:
- Last 2 years of tax returns
- Pay stubs from 60 days before filing
- Any other documents trustee requests
After Filing: The Process
Step 8: Attend the 341 Meeting (Meeting of Creditors)
- Scheduled 21-40 days after filing
- Usually lasts 5-10 minutes
- Trustee asks questions about your forms
- Creditors may attend (rarely do)
Step 9: Complete Debtor Education Course
- Must complete AFTER filing (different from pre-filing course)
- Find approved provider at: https://justice.gov/ust/eo/bapcpa/ccde/de_approved.htm
- File Form 423 (Certificate of Completion) within 60 days of 341 meeting
Step 10: Wait for Discharge
- Typically 60-90 days after 341 meeting
- You'll receive a court order discharging your debts
- Case officially closes
4. Exact Court Information
District of New Jersey - Newark Division
U.S. Bankruptcy Court Clerk
- Address: 50 Walnut Street, Newark, NJ 07102
- Phone: (973) 645-2600
- Hours: Monday-Friday, 8:30 AM - 4:30 PM
- Filing Fee: $338
- Fee Waiver: Available if income below 150% of poverty level (Form 103B)
- Website: https://www.njb.uscourts.gov
Counties Served: Bergen, Essex, Hudson, Morris, Passaic, Sussex, Warren
District of New Jersey - Camden Division
U.S. Bankruptcy Court Clerk
- Address: 401 Market Street, 2nd Floor, Camden, NJ 08102
- Phone: (856) 757-5000
- Hours: Monday-Friday, 8:30 AM - 4:30 PM
- Filing Fee: $338
Counties Served: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem
District of New Jersey - Trenton Division
U.S. Bankruptcy Court Clerk
- Address: 402 East State Street, Room 2020, Trenton, NJ 08608
- Phone: (609) 989-2100
- Hours: Monday-Friday, 8:30 AM - 4:30 PM
- Filing Fee: $338
Counties Served: Hunterdon, Mercer, Middlesex, Monmouth, Ocean, Somerset, Union
Fee Waiver Information
If you cannot afford the $338 filing fee:
- Complete Form 103B (Application to Have Filing Fee Waived)
- File with your petition
- Court will review and decide if you qualify
- Alternative: Form 103A (Application to Pay Fee in Installments)
5. Filing Checklist
Bring to the courthouse (or have ready for e-filing):
- [ ] Form 101 - Voluntary Petition (original)
- [ ] Schedules A/B through J
- [ ] Schedule Summary (Form 106Sum)
- [ ] Declaration (Form 106Dec)
- [ ] Statement of Financial Affairs (Form 107)
- [ ] Form 122A-1 (Current Monthly Income)
- [ ] Form 122A-2 (Means Test - if income above median)
- [ ] Credit Counseling Certificate (Form 423)
- [ ] Statement of Intention (if you have secured debts)
- [ ] Mailing matrix (list of all creditor addresses)
- [ ] Filing fee ($338) or fee waiver application
- [ ] Photo ID (driver's license, state ID, or passport)
- [ ] Social Security card or proof of SSN
- [ ] Copies of last 2 years of tax returns (for trustee)
- [ ] Pay stubs from 60 days before filing (for trustee)
6. What to Bring to the 341 Meeting
The 341 Meeting is also called the "Meeting of Creditors." It is NOT a court hearing before a judge. It's a meeting with the bankruptcy trustee.
Required:
- [ ] Photo ID (driver's license, passport, or state ID)
- [ ] Social Security card (original, not copy)
- [ ] Proof of address (utility bill, lease, or bank statement from last 30 days)
- [ ] Bank statements covering the filing date
- [ ] Most recent pay stub
- [ ] Vehicle registration(s) for any vehicles you own
- [ ] Any documents specifically requested by your trustee
If you own real estate:
- [ ] Most recent mortgage statement
- [ ] Property tax statement
- [ ] Homeowner's insurance declaration page
- [ ] Recent appraisal if available
If self-employed:
- [ ] Recent business bank statements
- [ ] Profit and loss statement
- [ ] Business tax returns
7. What Happens After Filing
Timeline
| Event | Timeframe |
|---|---|
| File petition | Day 1 |
| Automatic stay begins immediately | Day 1 |
| Case number assigned | Day 1 |
| Trustee assigned | 1-2 days |
| 341 Meeting scheduled | 21-40 days after filing |
| 341 Meeting (attend in person) | ~30 days |
| Deadline to complete debtor education | 60 days after 341 meeting |
| Deadline for creditors to object | 60 days after 341 meeting |
| Discharge order issued | ~90-120 days after filing |
| Case closed | Shortly after discharge |
The Automatic Stay (11 U.S.C. § 362)
Once you file, the "automatic stay" immediately stops:
- Foreclosure proceedings
- Car repossession
- Wage garnishment
- Collection calls and letters
- Lawsuits against you
- Utility shutoffs
Outcomes
- Discharge Granted: Most common. Your qualifying debts are wiped out. You get a fresh start.
- Case Dismissed: Can happen if you:
- Fail to file required documents
- Fail to attend the 341 meeting
- Fail to complete debtor education
- Try to hide assets or commit fraud
- Conversion to Chapter 13: If trustee finds you have enough income to repay some debts
After Discharge
- Keep your discharge order - This is your proof debts were wiped out
- Check your credit report - Discharged debts should show $0 balance
- Rebuild credit slowly - Get a secured credit card, pay on time
- Don't incur new debt immediately - Wait at least 6-12 months
- You cannot file Chapter 7 again for 8 years
8. Local Legal Aid Resources
LSC-Funded Legal Aid Organizations (Bankruptcy Help)
Legal Services of New Jersey (LSNJ) — Statewide Coordination
- Phone: (888) 576-5529 (LSNJ-LAW)
- Website: https://www.lsnjlaw.org
- Address: 100 Metroplex Drive, Suite 402, Edison, NJ 08817
- Services: Free legal help for low-income individuals, including bankruptcy guidance
- Income Eligibility: Typically 125% of federal poverty level
Northeast New Jersey Legal Services
- Phone: (201) 792-6363
- Website: https://www.nnjls.org
- Counties: Bergen, Hudson, Passaic, Sussex
- Services: Free civil legal services including debt and bankruptcy help
Central Jersey Legal Services
- Phone: (732) 499-6200
- Website: https://www.cjls.org
- Counties: Hunterdon, Mercer, Middlesex, Monmouth, Somerset, Union
- Services: Free legal help for low-income individuals
South Jersey Legal Services
- Phone: (856) 963-2900
- Website: https://www.lsnj.org/south
- Counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem
- Services: Free legal help including bankruptcy consultations
Essex-Newark Legal Services
- Phone: (973) 624-1818
- Website: https://www.enlaw.org
- Address: 494 Broad Street, Newark, NJ 07102
- Services: Free legal help for Essex County residents
Income Eligibility for Legal Aid
Most LSC-funded programs serve households with income at or below 125% of the Federal Poverty Level:
| Household Size | Annual Income Limit |
|---|---|
| 1 person | $18,225 |
| 2 people | $24,650 |
| 3 people | $31,075 |
| 4 people | $37,500 |
| Each additional person | +$6,425 |
Even if you are above these limits, call anyway — some programs have different funding sources with higher limits.
Bankruptcy-Specific Resources
New Jersey State Bar Association Lawyer Referral Service
- Phone: (732) 249-5000
- Website: https://www.njsba.com
- Services: Low-cost initial consultation with a bankruptcy attorney
U.S. Trustee Program - Region 3 (New Jersey)
- Website: https://www.justice.gov/ust
- Services: Information about approved credit counseling agencies and debtor education
New Jersey Bankruptcy Court Self-Help
- Website: https://www.njb.uscourts.gov/self-help
- Services: Forms, instructions, and filing information
2-1-1 New Jersey
- Dial: 2-1-1
- Website: https://www.nj211.org
- Services: Connects you to local social services, financial counseling, and support
9. Controlling Statute Citations
Federal Bankruptcy Law (Applies Nationwide)
| Topic | Statute |
|---|---|
| Bankruptcy Code | 11 U.S.C. |
| Chapter 7 Eligibility | 11 U.S.C. § 109 |
| Means Test | 11 U.S.C. § 707(b) |
| Automatic Stay | 11 U.S.C. § 362 |
| Exemptions (Federal) | 11 U.S.C. § 522 |
| Discharge | 11 U.S.C. § 727 |
| Debts Not Dischargeable | 11 U.S.C. § 523 |
| Credit Counseling Required | 11 U.S.C. § 109(h) |
| Debtor Education Required | 11 U.S.C. § 1113 |
| Fraud/Concealment | 11 U.S.C. § 727(a) |
New Jersey State Law (Exemptions)
New Jersey allows filers to choose between federal exemptions and New Jersey state exemptions. Most filers benefit from using federal exemptions because New Jersey's state exemptions are less generous.
New Jersey has NOT "opted out" of federal exemptions, so you can choose whichever system benefits you more.
| Topic | Federal Statute | NJ Statute |
|---|---|---|
| Federal Exemptions Available | 11 U.S.C. § 522(d) | — |
| Homestead Exemption (NJ) | — | N.J.S.A. 2A:26-3 ($1,000) |
| Personal Property Exemption (NJ) | — | N.J.S.A. 2A:17-19 |
| Motor Vehicle Exemption (NJ) | — | N.J.S.A. 2A:17-19 ($1,000) |
| Tools of Trade Exemption (NJ) | — | N.J.S.A. 2A:26-5 ($500) |
| Wages Exemption (NJ) | — | N.J.S.A. 2A:26-7 (90% or 40x minimum wage) |
| Public Benefits Exemption (NJ) | — | N.J.S.A. 2A:26-9 |
Federal Exemptions Summary (Often Better for NJ Filers)
| Property | Federal Exemption Amount |
|---|---|
| Homestead (primary residence) | $27,900 |
| Motor vehicle | $4,450 |
| Household goods, furnishings | $14,875 total (no single item over $700) |
| Tools of trade | $2,825 |
| Jewelry | $1,875 |
| Wildcard (any property) | $1,475 + up to $13,950 of unused homestead |
| Wages | 75% of earned but unpaid wages |
| Public benefits | 100% |
| Retirement accounts | 100% (with limitations) |
| Alimony/child support needed for support | Reasonably necessary |
New Jersey State Exemptions Summary
| Property | NJ Exemption Amount |
|---|---|
| Homestead | $1,000 (very limited) |
| Motor vehicle | $1,000 |
| Household goods | Reasonable and necessary |
| Tools of trade | $500 |
| Wages | 90% or 40x federal minimum wage |
| Public benefits | 100% |
| Insurance proceeds | Varies by type |
Recommendation: Most New Jersey filers should use the federal exemptions (11 U.S.C. § 522(d)) because they are significantly more generous than New Jersey's state exemptions.
10. Disclaimer
IMPORTANT: This packet provides general information and template documents for informational purposes only. It does not constitute legal advice.
- Jurist-Diction is not a law firm and cannot provide legal advice.
- Bankruptcy laws are complex and have long-term financial consequences.
- These documents may not be appropriate for your specific situation.
- Laws change frequently. Verify current law before filing.
- Filing bankruptcy incorrectly can result in denial of discharge or criminal charges.
You should consult an attorney if:
- You have significant assets (home with equity, investments, business)
- You recently transferred property to family or friends
- You have pending lawsuits
- You owe taxes
- You have student loans you want discharged
- A creditor claims you committed fraud
- Your case is contested by any creditor
For legal advice, contact:
- Legal Services of New Jersey at (888) 576-5529
- One of the legal aid organizations listed above
- A private bankruptcy attorney
- The New Jersey State Bar Association Lawyer Referral Service at (732) 249-5000
Attorney-drafted New Jersey bankruptcy documents from Jurist-Diction start at $97 — court-ready templates with step-by-step instructions.
Last Updated: March 2026