Find Bankruptcy Lawyers Near You in Hackensack, NJ

The cost of hiring a bankruptcy lawyer in New Jersey varies based on case complexity and chapter type. For a straightforward Chapter 7 case, attorney fees typically range from $1,200 to $2,500, with the court filing fee of $338 added separately. Chapter 13 cases are more expensive, with attorney fees ranging from $3,000 to $5,000, because the attorney must prepare a repayment plan and appear at multiple hearings over several years. Many lawyers in Hackensack offer payment plans, allowing clients to pay fees in installments before the case is filed, and some accept credit cards.

Low-income individuals may qualify for reduced-fee or pro bono services through Legal Services of New Jersey or the New Jersey State Bar Association Lawyer Referral Service. Additionally, the bankruptcy court allows debtors to pay filing fees in up to four installments if they cannot afford the full amount at once. This information is general and does not constitute legal advice. You should consult with a qualified bankruptcy attorney in Hackensack to discuss your specific financial situation and obtain an accurate cost estimate.

Bankruptcy law provides individuals and businesses in Hackensack, New Jersey, with a legal pathway to address overwhelming debt and obtain a financial fresh start. The three primary chapters available are Chapter 7, Chapter 13, and Chapter 11. Chapter 7, often called liquidation bankruptcy, is designed for individuals and businesses with limited income who cannot repay their debts. In a Chapter 7 case, a trustee sells non-exempt assets and distributes the proceeds to creditors, and most unsecured debts are discharged within three to six months. Chapter 13, known as reorganization bankruptcy, is for individuals with regular income who can commit to a three-to-five-year repayment plan. This chapter allows debtors to catch up on mortgage arrears, car loans, and other secured debts while keeping their property. Chapter 11 is primarily for businesses and high-income individuals, offering a more complex reorganization process that allows debtors to restructure debts and continue operations. A bankruptcy lawyer in Hackensack can help determine which chapter aligns with your financial situation, income level, and long-term goals.

New Jersey bankruptcy law incorporates specific state exemptions that debtors may choose instead of federal exemptions. New Jersey has opted out of the federal exemption system, meaning residents must use state exemptions unless they have lived in another state within the last two years. The New Jersey homestead exemption allows a debtor to protect up to $100,000 of equity in their primary residence, with an additional $50,000 available for debtors who are 65 or older, disabled, or have dependents. The vehicle exemption in New Jersey protects up to $3,725 in equity in one motor vehicle. The wildcard exemption is limited to $1,075 in personal property of any kind, plus up to $11,975 in unused homestead exemption. Other state-specific exemptions include household goods up to $1,000 per item, jewelry up to $1,500, and tools of the trade up to $3,725. These exemptions are codified in New Jersey Statutes Title 2A, specifically sections 2A:17-19 through 2A:17-23. A Hackensack bankruptcy lawyer can help you maximize these exemptions to protect your assets.

The means test is a critical calculation that determines eligibility for Chapter 7 bankruptcy. This test compares your current monthly income to the median income for a household of your size in New Jersey. As of 2025, the median income for a single-person household in New Jersey is approximately $72,000, for a two-person household about $88,000, for a three-person household about $100,000, and for a four-person household about $120,000. If your income is below the median, you automatically pass the means test and qualify for Chapter 7. If your income exceeds the median, you must complete a more detailed calculation subtracting allowed expenses from your income. If the resulting disposable income over five years is less than $8,175, you still qualify for Chapter 7. If it is between $8,175 and $13,650, you may qualify depending on the percentage of debt. If it exceeds $13,650, you are presumed to have sufficient income for Chapter 13 and cannot file Chapter 7. A bankruptcy lawyer in Hackensack can run these calculations for you and explain the results.

When you file for bankruptcy, an automatic stay immediately goes into effect, stopping most creditor collection actions. This means debt collectors must cease all phone calls, letters, lawsuits, wage garnishments, and foreclosure proceedings. The automatic stay remains in effect until your case is closed or dismissed. The timeline from filing to discharge varies by chapter. For Chapter 7, the process typically takes three to six months, with a meeting of creditors (341 meeting) occurring about 30 days after filing. For Chapter 13, the process takes three to five years, with monthly payments made to a trustee who distributes funds to creditors. Before filing, you must complete a mandatory credit counseling course from an approved agency. After filing, you must complete a debtor education course before receiving your discharge. Both courses are available online or by phone and typically cost between $10 and $50 each. A Hackensack bankruptcy lawyer will guide you through each step and ensure all paperwork is filed correctly.

The costs associated with bankruptcy include filing fees, attorney fees, and course fees. The bankruptcy court filing fee for Chapter 7 is $338, and for Chapter 13 it is $313. These fees are set by the federal judiciary and are non-refundable. Attorney fees for Chapter 7 in New Jersey typically range from $1,200 to $2,500 for a straightforward case, while Chapter 13 attorney fees are higher, often ranging from $3,000 to $5,000, because the case lasts longer and requires more court appearances. Many bankruptcy lawyers in Hackensack offer payment plans, allowing you to pay attorney fees in installments before filing. Some lawyers also accept credit cards. For those with very low income, pro bono resources are available through organizations such as Legal Services of New Jersey, which provides free legal assistance to qualifying individuals. Additionally, the New Jersey State Bar Association offers a Lawyer Referral Service that can connect you with attorneys offering reduced fees. It is important to discuss all costs upfront with your lawyer before signing a retainer agreement.

Life after bankruptcy involves both challenges and opportunities. A Chapter 7 discharge remains on your credit report for 10 years from the filing date, while a Chapter 13 discharge remains for 7 years. During this time, rebuilding credit is possible through responsible financial habits. Strategies include obtaining a secured credit card, becoming an authorized user on a family members account, and making all payments on time. Many lenders view a discharged bankruptcy as a sign that you have addressed past financial issues, and you may qualify for a mortgage or car loan within two to four years after discharge. However, not all debts are dischargeable in bankruptcy. Student loans are generally not dischargeable unless you can prove undue hardship through a separate adversary proceeding. Most tax debts are not dischargeable if they are less than three years old or if you filed fraudulent returns. Child support and alimony obligations are never dischargeable. Debts from willful injury, drunk driving accidents, and fines or penalties owed to government agencies also survive bankruptcy. A Hackensack bankruptcy lawyer can explain which of your specific debts may be eliminated and which will remain.