Filing Bankruptcy in New Jersey: Means Test, Exemptions and Courts

New Jersey has one federal bankruptcy court district: the U.S. Bankruptcy Court for the District of New Jersey (https://www.njb.uscourts.gov/).

Median family income for New Jersey: 1 person $87,173; 2 people $106,876; 3 people $137,136; 4 people $168,127; add $11,100 for each additional person beyond 4. These figures apply to bankruptcy cases filed on or after July 15, 2026.

Under federal bankruptcy law, a filer may choose either the federal exemption list in 11 U.S.C. 522(d) or the state's exemptions (plus other federal non-bankruptcy exemptions), unless state law specifically does not authorize the federal list. No New Jersey statute rejecting the federal exemptions was found in the official New Jersey statutes text, so New Jersey filers generally may choose between the federal list and New Jersey's exemptions. Spouses filing a jointly administered case must both use the same list. The New Jersey bankruptcy court's exemption page notes that exemptions are not automatic and must be listed on Schedule C.

New Jersey has no general homestead exemption; the Legislature's own findings in the 2025 Veterans and Military Spouses Asset Protection Act state that the State does not provide one. That act exempts the primary residence and one secondary residence of a veteran (honorably discharged), current service member or military spouse from levy, execution, attachment or forced sale, with no value limit, if ownership of both is recorded with the county clerk. It does not apply to mortgages or voluntary liens, government taxes and obligations, or judgments arising from the debtor's willful misconduct, fraud or criminal activity.

No general motor vehicle exemption; a vehicle may be protected only within the $1,000 exemption for personal property of any kind. Under the 2025 Veterans and Military Spouses Asset Protection Act, one motor vehicle per household owned by a veteran, service member or military spouse is exempt up to a fair market value of $30,000 (not against voluntary liens, government obligations, or judgments for willful misconduct, fraud or crime).

Goods and chattels, shares of stock or corporate interests, and personal property of every kind up to $1,000 in value, plus all wearing apparel, are exempt from execution. This does not protect property against a judgment for its own purchase price, or against tax collection. Separately, household goods and furniture up to $1,000 are exempt from attachment.

Property held in, and distributions from, a qualifying trust are exempt from all claims of creditors and excluded from a bankruptcy estate. A qualifying trust is one created or qualified under federal law, including Internal Revenue Code sections 401, 403, 408, 408A, 409, 529 and 530 (such as 401(k)s, 403(b)s, IRAs and Roth IRAs). Exceptions: voidable or fraudulent transfers, child or spousal support orders and qualified domestic relations orders, and punitive damages for manslaughter or murder. Retirement accounts and pensions of veterans, service members and military spouses are also exempt under the 2025 veterans act.

A wage execution generally may not exceed 10% of the debtor's wages, unless the debtor's income is more than 250% of the federal poverty level for the family size, in which case the court may order a larger percentage. For certain State-filed wage executions, up to 25% of gross earnings may be taken if the debtor's remaining income stays at least 250% of the poverty level.

The New Jersey bankruptcy court's Filing Without an Attorney page says individuals may represent themselves (corporations and partnerships must have an attorney), strongly recommends an attorney, and warns that a case dismissed for a missing document, such as a credit counseling certificate, can limit later filings and the automatic stay. It links to a checklist of Chapter 7 and 13 documents required at filing, Chapter 7 and Chapter 13 Debtor Assistance Resource Guides, approved credit counseling agencies, median income data, court fees and how to pay the filing fee, foreclosure resources, exemption information, finding a lawyer, legal resources, and where to file by county. The court offers electronic submission of a bankruptcy package (eSR) for individuals filing Chapter 7 or Chapter 13 without an attorney; the page warns that this may delay the actual filing by several days until the court receives the remaining required items, which matters for someone trying to stop a foreclosure, and points to the court's Loss Mitigation Program.

District of New Jersey (the state's only bankruptcy district): under D.N.J. LBR 2016-5(b) (local rules dated August 1, 2026), an attorney who charges a standard fee of $6,000 or less is not required to file an application for compensation. The standard fee includes all services and reimbursable necessary expenses required to confirm a plan, including administrative services required after confirmation; adversary proceedings, loss mitigation/loan modification, and postconfirmation filings and matters before the court are excluded and may be the subject of a fee application. The 2026 Comment states the standard fee was increased from $4,750 to $6,000 for cases filed on or after August 1, 2026, with later increases subject to adjustment of dollar amounts under 11 U.S.C. 104. Alternatively, counsel may elect hourly billing with a fee application.