If you’re considering filing bankruptcy in New Jersey, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Bankruptcy is a legal process designed to provide individuals and businesses with relief from overwhelming debt by either eliminating their debts (Chapter 7) or reorganizing and repaying them (Chapter 13). Qualifying for bankruptcy in New Jersey, like in other states, involves meeting certain eligibility criteria and understanding the different chapters of bankruptcy available.

1. Chapter 7 Bankruptcy: Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” is designed to discharge unsecured debts, such as credit card debt and medical bills, by selling non-exempt assets to repay creditors. To qualify for Chapter 7 bankruptcy in New Jersey, you must meet the following criteria:
   • Means Test: The means test is a key factor in determining eligibility for Chapter 7. It evaluates your income and expenses to see if you have enough disposable income to repay your debts. If your income is below the state’s median income for a household of your size, you generally qualify for Chapter 7. If your income exceeds the median, further calculations are required to determine eligibility.
   • Credit Counseling: Before filing for Chapter 7, you must complete a credit counseling course from an approved agency within 180 days of filing.
   • Previous Bankruptcy Discharge: If you have received a Chapter 7 discharge within the past eight years or a Chapter 13 discharge within the past six years, you may be ineligible for another Chapter 7 discharge.
   • Asset Consideration: New Jersey has specific exemptions that protect certain assets from liquidation during a Chapter 7 bankruptcy. If your assets are primarily exempt, you may be more likely to qualify.
2. Chapter 13 Bankruptcy: Chapter 13 bankruptcy, often referred to as “reorganization bankruptcy,” allows individuals to create a repayment plan to pay off a portion or all of their debts over a period of three to five years. To qualify for Chapter 13 bankruptcy in New Jersey:
   • Steady Income: You must have a regular source of income that is sufficient to cover your living expenses and make payments under the proposed repayment plan.
   • Debt Limitations: There are debt limits for Chapter 13 eligibility.
   • Priority Debts: Your repayment plan must provide for the payment of priority debts, such as taxes and child support, in full.
   • Plan Feasibility: Your proposed repayment plan must be feasible and demonstrate that you can make the required payments.
   • Credit Counseling: Similar to Chapter 7, you must complete credit counseling before filing for Chapter 13.It’s important to note that bankruptcy laws can change. It’s advisable to consult with a bankruptcy attorney in New Jersey or check for any updates in eligibility criteria to ensure you meet the current requirements.
3. Chapter 11 Bankruptcy: Chapter 11 bankruptcy is primarily used by businesses to reorganize their debts and continue operations. However, individuals with significant debt may also file under Chapter 11 if they do not qualify for Chapter 7 or Chapter 13 due to high debt levels.
4. Chapter 12 Bankruptcy: Chapter 12 bankruptcy is specifically designed for family farmers and fishermen. To qualify, you must meet certain criteria related to the nature of your business and income.

The qualifications for filing bankruptcy in New Jersey depend on the specific chapter you wish to pursue. Chapter 7 is generally for individuals with limited means and unsecured debts, while Chapter 13 is for those with regular income who can create a feasible repayment plan. Chapter 11 and Chapter 12 have their own specialized criteria. It’s essential to consult with a knowledgeable bankruptcy attorney in New Jersey to assess your eligibility and determine the most appropriate course of action based on your financial situation. Bankruptcy is a complex legal process, and professional guidance is crucial to navigate it successfully.

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Do You Need a Lawyer to File For Bankruptcy in New Jersey?

Filing for bankruptcy in New Jersey, like in many other states, is a legal process that can be complex and challenging to navigate on your own. While it is possible to file for bankruptcy without an attorney, it is generally advisable to seek the assistance of an experienced bankruptcy lawyer.

1. Understanding Bankruptcy Laws: Bankruptcy law is intricate and varies from state to state. New Jersey has its own specific rules and regulations regarding bankruptcy proceedings. An attorney who specializes in bankruptcy law is well-versed in the intricacies of the state’s laws and can provide valuable insights and guidance tailored to your unique situation.
2. Expertise in Chapter Selection: Bankruptcy offers various chapters, such as Chapter 7, Chapter 13, Chapter 11, and Chapter 12, each with its own eligibility criteria and advantages. An attorney can assess your financial circumstances and help you determine which chapter is most suitable for your needs. Selecting the appropriate chapter is crucial to achieving your financial goals and maximizing the benefits of bankruptcy.
3. Completing Complex Paperwork: Bankruptcy involves extensive paperwork, including the preparation and filing of bankruptcy petitions, schedules, and statements. These documents require precise and accurate information. A bankruptcy attorney can help you complete the paperwork correctly, reducing the risk of errors or omissions that could lead to complications in your case.
4. Protection from Creditors: Once you file for bankruptcy, an automatic stay goes into effect, preventing creditors from pursuing collection actions against you. Creditors may challenge this stay in certain circumstances. A knowledgeable attorney can handle any challenges and protect your rights, ensuring that you receive the full benefits of the automatic stay.
5. Asset Protection: Depending on the chapter of bankruptcy you file, you may have the opportunity to protect certain assets through exemptions or repayment plans. An attorney can help you identify and maximize the use of exemptions available under New Jersey law, allowing you to retain essential property.
6. Handling Creditor Negotiations: Bankruptcy attorneys can negotiate with creditors on your behalf. They can work to modify payment terms, reduce interest rates, or even negotiate settlements that could result in lower debt amounts. These negotiations can be critical in achieving a more favorable outcome.
7. Court Representation: Bankruptcy cases may involve court hearings, meetings with trustees, and other legal proceedings. Having an attorney to represent you in these matters ensures that your rights are protected and that you have a knowledgeable advocate by your side.
8. Avoiding Mistakes and Pitfalls: Bankruptcy law is unforgiving when it comes to mistakes or missteps. Errors in your bankruptcy filing can lead to delays, dismissals, or even the denial of your discharge. An attorney can help you avoid common pitfalls and guide you through the process smoothly.
9. Post-Bankruptcy Planning: Bankruptcy doesn’t end with the discharge of your debts. An attorney can provide post-bankruptcy guidance on rebuilding your credit, managing your finances, and ensuring a successful financial future.
10. Peace of Mind: Filing for bankruptcy can be emotionally taxing, and the legal process can be overwhelming. Having a skilled attorney on your side provides peace of mind, knowing that you have a professional who is dedicated to helping you achieve a fresh financial start.

While it is possible to file for bankruptcy without an attorney, the benefits of hiring one often far outweigh the costs. Bankruptcy attorneys have the knowledge and experience to navigate the complexities of the process, protect your rights, and help you achieve the best possible outcome for your financial situation. If you’re considering bankruptcy in New Jersey, consulting with a qualified attorney is a wise step to take.

Cost to File Chapter 7 Bankruptcy in New Jersey

The cost to file Chapter 7 bankruptcy in New Jersey includes several fees and expenses that you should be aware of. Here’s a breakdown of the key costs associated with filing Chapter 7 bankruptcy in New Jersey:

1. Filing Fee: The filing fee for Chapter 7 bankruptcy in New Jersey is determined by the U.S. Bankruptcy Court and is subject to change. As of my last update, the filing fee for Chapter 7 was approximately $356. However, it’s essential to check the most current fee on the U.S. Bankruptcy Court’s official website or by contacting the court directly, as fees can change over time.
2. Credit Counseling Course: Before filing for Chapter 7 bankruptcy, you are required to complete a credit counseling course from an approved agency. The cost of this course can vary but typically ranges from $25 to $58. Some agencies offer fee waivers or reduced fees for those with low income.
3. Attorney Fees: While you can technically file for Chapter 7 bankruptcy pro se (without an attorney), it is highly advisable to hire an experienced bankruptcy attorney. Attorney fees can vary widely depending on the complexity of your case and the attorney’s experience and location. On average, you can expect attorney fees for a Chapter 7 case in New Jersey to range from $1,180 to $2,750 or more. Keep in mind that hiring an attorney can greatly increase the chances of a successful bankruptcy filing and ensure that your rights and interests are protected throughout the process.
4. Credit Report and Miscellaneous Costs: You may need to obtain a copy of your credit report to ensure that you have a complete list of your creditors when filing for bankruptcy. The cost of obtaining a credit report can vary, but you can typically obtain one for free once a year from each of the major credit bureaus (Equifax, Experian, and TransUnion). If you need additional copies or have specific credit report-related expenses, consider these costs as well.
5. Trustee Fees: In Chapter 7 bankruptcy, a trustee is appointed to oversee the liquidation of non-exempt assets and the distribution of funds to creditors. The trustee is paid a fee from the proceeds of the sale of any non-exempt assets. This fee varies depending on the complexity of the case but is generally a percentage of the funds distributed to creditors.

Bankruptcy laws and fees can change over time, so it’s essential to verify the current costs and requirements with the U.S. Bankruptcy Court for the District of New Jersey or consult with a qualified bankruptcy attorney in New Jersey who can provide up-to-date information and guidance based on your specific financial situation. Keep in mind that while there are costs associated with filing Chapter 7 bankruptcy, the benefits of debt relief and a fresh financial start can often outweigh these expenses for individuals facing overwhelming debt.

Cost to File Chapter 11 Bankruptcy in New Jersey

Filing for Chapter 11 bankruptcy in New Jersey can be a complex and costly process, especially when compared to Chapter 7 or Chapter 13 bankruptcies. Chapter 11 is typically used by businesses and individuals with substantial assets or complex financial situations to reorganize and continue operations. Here’s an overview of the costs associated with filing for Chapter 11 bankruptcy in New Jersey:

1. Filing Fee: The filing fee for a Chapter 11 bankruptcy case in New Jersey is approximately $1,890. However, it’s essential to verify the most current fee on the U.S. Bankruptcy Court’s official website or by contacting the court directly, as fees can change over time.
2. U.S. Trustee Fees: In addition to the filing fee, Chapter 11 debtors are required to pay quarterly fees to the U.S. Trustee’s Office. These fees are based on the amount of disbursements made during the case. The U.S. Trustee assesses a percentage fee, which can vary but is typically around 0.1% to 0.3% of the disbursements. These fees can add up significantly over the course of a Chapter 11 case.
3. Attorney Fees: Chapter 11 cases are highly complex and typically require the services of experienced bankruptcy attorneys who specialize in this area of law. Attorney fees for Chapter 11 cases are generally much higher than those for Chapter 7 or Chapter 13 cases due to the complexity of the proceedings. The cost can vary widely depending on the specifics of the case, the complexity of the reorganization plan, and the attorney’s experience. It is not uncommon for attorney fees in Chapter 11 cases to range from tens of thousands to hundreds of thousands of dollars.
4. Retention of Professionals: In some Chapter 11 cases, it may be necessary to retain other professionals such as financial advisors, accountants, appraisers, or consultants to assist with the reorganization process. The fees for these professionals can also be substantial and are typically paid from the debtor’s assets.
5. Administrative Expenses: Throughout the Chapter 11 process, there are various administrative expenses that the debtor may be responsible for, including court costs, mailing and publishing costs, and expenses related to creditor meetings and hearings.
6. Plan Confirmation Costs: Successfully confirming a Chapter 11 reorganization plan often involves additional legal and professional fees. These costs can arise from negotiating with creditors, addressing objections, and obtaining court approval for the plan.

It’s important to note that Chapter 11 cases can be protracted and expensive, making it crucial for debtors to carefully consider whether the benefits of reorganization outweigh the associated costs. Additionally, bankruptcy laws and fees can change over time, so it’s essential to verify the current costs and requirements with the U.S. Bankruptcy Court for the District of New Jersey or consult with a qualified bankruptcy attorney in New Jersey who can provide up-to-date information and guidance based on your specific financial situation. Given the complexity of Chapter 11 bankruptcy, seeking professional legal counsel is highly recommended to navigate the process effectively.

Cost to File Chapter 13 Bankruptcy in New Jersey

Filing for Chapter 13 bankruptcy in New Jersey involves various costs and fees that individuals should consider when seeking debt relief through this reorganization process. Chapter 13 is designed to help individuals with regular income create a manageable repayment plan to address their debts over a period of three to five years. Here’s an overview of the costs associated with filing Chapter 13 bankruptcy in New Jersey:

1. Filing Fee: The filing fee for a Chapter 13 bankruptcy case in New Jersey was approximately $340 as of my last update. However, it’s crucial to verify the most current fee on the U.S. Bankruptcy Court’s official website or by contacting the court directly, as fees can change over time.
2. Attorney Fees: While it is possible to file for Chapter 13 bankruptcy pro se (without an attorney), many individuals opt to hire an experienced bankruptcy attorney to help them navigate the complex process successfully. Attorney fees for Chapter 13 cases can vary widely depending on the complexity of the case, the attorney’s experience, and the location. On average, you can expect attorney fees for a Chapter 13 case in New Jersey to range from $2,300 to $4,670 or more. Attorneys typically work with clients to establish reasonable payment plans for their fees.
3. Credit Counseling and Financial Management Courses: Before filing for Chapter 13 bankruptcy, you are required to complete a credit counseling course from an approved agency. After filing, you must also complete a financial management course. The combined cost of these courses typically ranges from $60 to $120.
4. Trustee Fees: In Chapter 13 bankruptcy, a trustee is appointed to oversee the repayment plan and disburse payments to creditors. Trustees are compensated through a percentage fee based on the total payments made under the plan. The percentage can vary but is generally around 3% to 10% of the total plan payments over the course of the plan.
5. Court Costs and Miscellaneous Expenses: Throughout the Chapter 13 process, there may be additional court costs, mailing and publication expenses, and fees associated with creditor meetings and hearings. These costs can vary depending on the specific circumstances of the case.
6. Plan Confirmation Costs: Successfully confirming a Chapter 13 repayment plan may involve additional legal fees, especially if there are objections from creditors or other complications that require court hearings or negotiations.

Bankruptcy laws and fees can change over time, so it’s essential to verify the current costs and requirements with the U.S. Bankruptcy Court for the District of New Jersey or consult with a qualified bankruptcy attorney in New Jersey who can provide up-to-date information and guidance based on your specific financial situation. While Chapter 13 bankruptcy does involve expenses, it can provide valuable relief and a structured path to managing and reducing your debts over time.

Reliable Bankruptcy Attorneys in New Jersey

Below is a list of reputable bankruptcy attorneys in New Jersey. They can help you with both personal and business bankruptcy information.

Low & Low, LLC
618 Newark Ave, Elizabeth, NJ 07208, United States

Harrison & Christos
1306 River Ave, Lakewood, NJ 08701, United States

Joseph Chang LLC
951 Madison Ave, Paterson, NJ 07513, United States

Fitzgerald & Associates, PC
649 Newark Ave, Jersey City, NJ 07306, United States

Law Offices of Roger Chavez
50 Park Pl Suite 1104, Newark, NJ 07102, United States

New Jersey Zip Codes We Proudly Serve:

Newark

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Jersey City

7305, 7306, 7302, 7304, 7307, 7310, 7311

Paterson

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Lakewood

8701

Elizabeth

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