New Jersey Bankruptcy — Get Relief from Overwhelming Debt
You are not alone. Every day, people just like you — good people going through a hard time — call our office. We do not judge. We listen, we explain your options clearly, and we only recommend what is genuinely in your best interest. Call 718-273-2525 for a free, confidential consultation →
If you are struggling with debt in New Jersey — whether it is credit cards, medical bills, personal loans, or mortgage arrears — bankruptcy may provide the permanent relief you need. Meyers & Bonomo, Esqs. has helped thousands of New York and New Jersey residents eliminate debt and start over since 1992.
We serve New Jersey clients from our Union City, NJ office at 3710 Kennedy Boulevard, conveniently located for clients in Hudson County, Essex County, Union County, Bergen County, Jersey City, Hoboken, Newark, and surrounding communities. New Jersey matters are handled by William Bonomo, Esq., with the full support of Jay Meyers, a federally designated debt relief agent.
Recent NJ Victory: William Bonomo secured a major victory in the Southern District of New York — Judge Bernstein ruled that a creditor was barred from pursuing a $54,000 claim against our client, who owned a payment processing business. Our client kept his discharge and owed nothing on this debt.
Chapter 7 Bankruptcy in New Jersey
Chapter 7 bankruptcy is the fastest and most complete form of debt relief available. In New Jersey, most Chapter 7 cases are completed in 3–5 months from filing to discharge. Upon discharge, most unsecured debts — credit cards, medical bills, personal loans, utility bills, and civil judgments — are permanently eliminated.
⚠ Time Matters
The longer you wait, the fewer options you have. A bankruptcy filing stops all collection activity immediately — the same day you file. Creditors cannot call, sue, garnish your wages, or foreclose while the automatic stay is in effect. Call now →
Who Qualifies for Chapter 7 in New Jersey?
To qualify for Chapter 7, your income must pass the New Jersey means test. As of 2025:
- Single person: approximately $84,938 median income threshold
- Family of two: approximately $104,136
- Family of four: approximately $163,817
If your income exceeds these amounts, you may still qualify under the full means test analysis of expenses, or Chapter 13 may be appropriate.
What You Keep in a New Jersey Chapter 7
New Jersey debtors can choose between New Jersey state exemptions or the federal bankruptcy exemptions — whichever protects more of your assets. We analyze both at your consultation. Key protected assets include:
- Your home: Federal homestead exemption up to $31,575 (or New Jersey's unlimited homestead if equity is below the threshold)
- Your car: Up to $5,025 in vehicle equity
- Retirement accounts: 401(k), IRA, pension — fully protected up to $1,711,975
- Household goods and clothing
- Tools of the trade
- Federal wildcard: Up to $1,675 plus unused homestead — protects cash, tax refunds, and other property
Chapter 13 Bankruptcy in New Jersey
Chapter 13 allows New Jersey debtors to reorganize debt into an affordable 3–5 year repayment plan. It is ideal when you:
“Jay gave me reassurance and hope. He helped me understand that there is a life past all of this — and he delivered. I will forever be grateful.”
Ray Levato — Bankruptcy Client • Read All Reviews →
- Earn too much income to pass the Chapter 7 means test
- Are behind on mortgage payments and want to save your home
- Have non-exempt assets you want to protect
- Want to strip a wholly unsecured second mortgage lien
- Have tax debts you need to reorganize
- Filed Chapter 7 within the past 8 years
The EDNY Loss Mitigation Program for NJ Clients
Many of our New Jersey clients who are facing mortgage foreclosure in addition to general debt problems benefit from the Eastern District of New York (EDNY) Loss Mitigation Program. This court-supervised program compels mortgage lenders to negotiate in good faith under court-enforced timelines — often producing modification results that ordinary direct requests cannot achieve. Ask us whether this program may be available for your situation.
How the NJ Bankruptcy Process Works
- Free consultation — We analyze your income, assets, and debts at no charge
- Credit counseling — One-hour online course required within 180 days of filing
- Filing — Petition filed in the District of New Jersey; automatic stay takes effect immediately
- 341 meeting — Brief meeting with trustee, typically 5–10 minutes
- Discharge — Chapter 7 discharge typically granted 3–5 months after filing
Ready to Take the First Step?
One phone call can change everything. We will tell you exactly where you stand — no jargon, no pressure, no obligation. Most clients feel better after the very first conversation.
Confidential • No obligation • Habla Español • We come to you if needed
Related NJ Legal Topics
- NJ Mortgage Modification — Behind on your NJ mortgage? We can help stop foreclosure.
- NJ Reaffirmation Agreements — Should you keep your car loan or mortgage after NJ bankruptcy?
- New York Bankruptcy — Also need help with NY debts? See our NY bankruptcy page.
- Meyers & Bonomo — NJ Office — Learn more about our Union City, NJ legal team.
New Jersey Bankruptcy FAQ
What are the New Jersey bankruptcy exemptions?
New Jersey debtors can choose between New Jersey state exemptions and federal bankruptcy exemptions. Federal exemptions are typically more favorable and include: homestead exemption up to $31,575, vehicle exemption up to $5,025, retirement accounts fully exempt up to $1,711,975, and a federal wildcard exemption of up to $1,675 plus unused homestead exemption. We analyze both sets to maximize your protection.
How does the means test work for Chapter 7 in New Jersey?
The means test compares your average monthly income over the past 6 months to the New Jersey median income for your household size. As of 2025, the median income is approximately $84,938 for a single person and $163,817 for a family of four in New Jersey. If you are below the median, you automatically qualify. If above, a more detailed analysis of expenses is required.
Can I keep my car if I file bankruptcy in New Jersey?
In most cases, yes. If your car equity is within the exemption amount and you are current on payments — or you reaffirm the loan — you keep the car. If your equity exceeds the exemption, we may use the federal wildcard exemption to cover the gap, or explore Chapter 13 as an alternative.
What courts handle bankruptcy in New Jersey?
New Jersey bankruptcy cases are filed in the United States Bankruptcy Court for the District of New Jersey, which has offices in Newark, Trenton, and Camden. Our firm handles cases primarily in the Newark division, serving clients in Hudson County, Essex County, Bergen County, Union County, and surrounding areas.
Is bankruptcy public record in New Jersey?
Technically yes — bankruptcy filings are federal court records accessible through PACER. However, in practice, most neighbors, employers, and acquaintances will not know you filed. Your employer may be aware if wage garnishment stops suddenly, but federal law protects employees from being fired solely for filing bankruptcy.