New Jersey Bankruptcy Law: Filing Process and Fees

New Jersey Bankruptcy Law: Filing Process and Fees

Understanding New Jersey bankruptcy law is crucial for individuals facing financial difficulties. The state provides several options for debt relief, primarily under Chapter 7 and Chapter 13 of the U.S. Bankruptcy Code. Familiarizing yourself with the filing process and associated fees can help ease the burden during challenging financial times.

Types of Bankruptcy in New Jersey

In New Jersey, individuals typically file for bankruptcy under Chapter 7 or Chapter 13:

  • Chapter 7 Bankruptcy: This type involves liquidating non-exempt assets to repay creditors. It generally allows for the discharge of most unsecured debts, such as credit cards and medical bills.
  • Chapter 13 Bankruptcy: This option is designed for individuals with a steady income who can repay some or all of their debts through a structured repayment plan over three to five years.

The Filing Process

The bankruptcy filing process in New Jersey typically follows these steps:

  1. Credit Counseling: Before filing for bankruptcy, you must complete a credit counseling course from an approved provider. This step helps determine whether bankruptcy is the right option for you.
  2. Gathering Documentation: Collect essential financial documents, including tax returns, pay stubs, bank statements, and a list of debts and assets. This information is crucial for completing your bankruptcy forms accurately.
  3. Filling Out Bankruptcy Forms: Complete the appropriate bankruptcy petition and schedules, ensuring all information is detailed and accurate. New Jersey citizens can access the necessary forms through the U.S. Courts website or consult an attorney for assistance.
  4. Filing Your Petition: Submit your completed forms to the Bankruptcy Court in your district. A filing fee is required at this stage, which varies based on the chapter under which you are filing.
  5. 341 Meeting of Creditors: After filing, you must attend a meeting known as the 341 meeting, where a bankruptcy trustee and your creditors may ask questions about your financial situation.
  6. Complete Required Financial Management Course: In addition to credit counseling, you must complete a debtor education course after filing for bankruptcy.

Bankruptcy Filing Fees in New Jersey

The cost of filing for bankruptcy in New Jersey varies depending on the chapter you choose. As of 2023, the fees are approximately as follows:

  • Chapter 7 Bankruptcy: The filing fee is around $338.
  • Chapter 13 Bankruptcy: The filing fee is about $313.

In addition to these fees, you may incur costs for credit counseling and debtor education courses, which can range from $50 to $150 each. If you cannot afford the filing fees, you can request a fee waiver or apply for installment payments in some cases.

Conclusion

Navigating New Jersey bankruptcy law can be complex, but understanding the filing process and fees is a vital step in regaining your financial footing. Consulting with a qualified bankruptcy attorney can provide valuable guidance and help you make informed decisions regarding your financial future.