New Jersey Bankruptcy

Bankruptcy is a legal way for individuals and businesses to seek relief when they owe more than they can afford to repay. The process is carried out under the supervision of the court and a trustee.

In New Jersey, bankruptcy is handled in federal court under the Bankruptcy Code, but unique state and federal exemption options still apply. Moreover, New Jersey residents may choose either the state or the federal exemption list (not both).

How to File Bankruptcy in New Jersey

Go through this clear, practical, step-by-step overview that has been tailored for every New Jersey resident. The first step is to take an approved credit counseling course within 180 days before filing.

Collect all recent tax returns, the last six months of income, pay stubs, bank statements, lists of assets and debts, property titles/deeds, and any lawsuits or garnishments. Choose the preferred chapter and exemption scheme (Chapter 7 (liquidation), Chapter 13 (repayment plan), or Chapter 11 (reorganization)). Choose either the New Jersey state exemptions or the federal exemptions.

File the petition, schedules, and other official forms with the bankruptcy court. Your attorneys must file the case electronically, or you may file it yourself (pro se). Pay the filing fee or request relief (installments or waiver) if you are unable to pay. Attend the 341 meeting of creditors with your valid ID, financial records, and answer all questions under oath.

After filing, you must finish the required debtor-education program. Then comply with trustee/court requests and await discharge, plan confirmation, or reorganization approval.

New Jersey Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

A brief explanation of each major chapter in New Jersey.

Chapter 7 (Liquidation)

This chapter is designed for individuals with limited income and mostly unsecured debt. The law permits a trustee to sell non-exempt property to repay creditors. Your exemption choice matters as it affects which asset is protected.

Chapter 13 (Repayment Plan)

This chapter allows individuals with regular income to reorganize and repay their debts over 3–5 years, rather than liquidating assets. Your non-exempt equity may determine the minimum amount of your repayment plan.

Chapter 11 (Reorganization)

This is commonly employed by businesses or individuals with large/complex debt. Here, the debtor continues operations of their business while restructuring their debts under the oversight of the court.

Step in Filing for Bankruptcy in New Jersey

You can take the following steps when you want to file for bankruptcy in New Jersey.

• Complete a credit-counseling course.
• Gather your tax returns, income, bank statements, asset/debt lists, and other relevant documents.
• Choose a chapter and an exemption scheme (state or federal)
• File the petition and schedules in the correct New Jersey division
• Pay the filing fee or request relief
• Attend the 341 meeting of creditors
• Complete your debtor-education course
• Respond to the trustee or court communications until discharge or plan completion.

New Jersey Bankruptcy Court & Access to Records

There is only one federal bankruptcy court in Jersey.

Court Locations

The District of New Jersey: The main headquarters is located in Newark. Other courthouses are located in Trenton and Camden. The court provides a list of credit counseling agencies in New Jersey. The address for the main office is:

Record Access

All bankruptcy records filed before December 1, 2003, are available on the Public Access Court Electronics Records service center. This free service requires a Pacer account before an individual can log in to access the documents. There is a $0.10 fee for users to search and view court case files.

Another method to view bankruptcy records is the Voice Case Information System (VCIS). This is a free service that provides limited case information over the telephone, including debtor name, case number, judge, filing date, chapter, attorney, trustee, and current case status. To access this service, you must call toll-free at 1-866-222-8029 from any touch-tone telephone.

Each clerk’s office has a public terminal where individuals can access court records. Viewing information is free, but printing from the public terminals costs $.10 per page.

You may also obtain copies of documents by completing a copy, exemplification, or certification request form and submitting it by email to the court. You must pay the fees online via the court's payment portal. Upon completion, you may pick up the photocopies, certified copies, and exemplification certificates in person at the clerk's office or receive them by mail.

General bankruptcy case files are retained by the court for 15 years. For archived records or records filed before 2003, you can order online or obtain them from the National Archives.

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