Find Bankruptcy Lawyers Near You in New Brunswick, NJ

Typical costs for a bankruptcy lawyer in New Jersey vary based on case complexity and the attorney's experience. For a straightforward Chapter 7 case, attorney fees generally range from $1,500 to $3,500, with the court filing fee of $338 paid separately. Chapter 13 cases involve more work, with attorney fees between $3,000 and $6,000, plus the $313 filing fee. Many lawyers offer payment plans, allowing you to pay attorney fees in installments before filing. Some Chapter 13 fees can be included in the repayment plan and paid over three to five years. For low-income individuals, Legal Services of New Jersey and other pro bono programs may provide free representation.

This information is general and does not constitute legal advice. Bankruptcy laws and fees can change, and your specific circumstances may affect costs. You should consult with a qualified bankruptcy lawyer in New Brunswick to discuss your situation and obtain a detailed fee estimate.

For residents and business owners in New Brunswick, New Jersey, facing overwhelming debt can feel like an insurmountable challenge. Bankruptcy law provides a legal pathway to financial relief, but understanding which chapter of the Bankruptcy Code applies to your situation is critical. Chapter 7 bankruptcy, often called liquidation, is designed for individuals and businesses with limited income who cannot repay their debts. Under Chapter 7, a trustee may sell non-exempt assets to pay creditors, and most remaining unsecured debts are discharged. Chapter 13 bankruptcy, by contrast, is a reorganization plan for individuals with regular income who can commit to a three-to-five-year repayment plan. This chapter is ideal for those who want to keep their home or car while catching up on missed mortgage or auto loan payments. Chapter 11 bankruptcy is primarily for businesses, including sole proprietorships and corporations, seeking to restructure their debts and continue operations. A New Brunswick bankruptcy lawyer can help you evaluate your income, assets, and goals to determine which chapter offers the most appropriate relief.

New Jersey law provides specific exemptions that protect certain property from liquidation in bankruptcy. Unlike some states that require debtors to use federal exemptions, New Jersey allows residents to choose between state and federal exemption systems. The New Jersey homestead exemption protects up to $100,000 of equity in your primary residence, or up to $200,000 if you are 65 or older or disabled. For married couples filing jointly, these amounts double. The state vehicle exemption allows you to protect up to $15,000 of equity in one motor vehicle. New Jersey also offers a wildcard exemption of up to $1,000 for any personal property, and an additional $1,000 for household goods and furnishings. Other important state exemptions include up to $10,000 in personal injury recoveries, retirement accounts like 401(k)s and IRAs (within federal limits), and life insurance policies. These exemptions are codified in New Jersey Statutes Title 2A, specifically sections 2A:17-19 through 2A:17-56. Choosing between state and federal exemptions requires careful analysis, as federal exemptions offer different protections, such as a $27,900 homestead exemption (which is far less generous than New Jersey's state exemption for homeowners).

The means test is a critical gatekeeping mechanism for Chapter 7 bankruptcy eligibility. This test compares your current monthly income over the six months before filing to the median income for a household of the same size in New Jersey. As of 2025, the median annual income for a single-person household in New Jersey is approximately $89,000, for a two-person household about $109,000, for a three-person household about $128,000, and for a four-person household about $150,000. If your income falls below these medians, you automatically qualify for Chapter 7. If your income exceeds the median, you must complete a detailed calculation of your disposable income after subtracting allowed expenses, such as housing, transportation, and food. If the resulting disposable income is too high, you may be presumed to have the ability to repay some debts, and Chapter 13 becomes the only option. A New Brunswick bankruptcy lawyer can perform this calculation accurately, as errors in the means test can lead to case dismissal or conversion to Chapter 13.

When you file for bankruptcy, an automatic stay immediately goes into effect. This powerful legal injunction stops all collection activities, including phone calls from creditors, wage garnishments, foreclosure proceedings, repossession efforts, and lawsuits. The automatic stay provides immediate breathing room and protects you from creditor harassment. The timeline from filing to discharge varies by chapter. For Chapter 7, the process typically takes three to six months. You must attend a meeting of creditors (called a 341 meeting) about 30 to 45 days after filing, where the trustee and any creditors may ask questions about your finances. The discharge order usually arrives about 60 to 90 days after the 341 meeting. For Chapter 13, the repayment plan lasts three to five years, and the discharge occurs after you complete all plan payments. Before filing, you must complete a mandatory credit counseling course from an approved agency within 180 days before filing. After filing, you must complete a debtor education course before receiving your discharge. These courses are available online or by phone and typically cost between $10 and $50 each.

The costs of bankruptcy in New Brunswick include court filing fees and attorney fees. As of 2025, the filing fee for Chapter 7 is $338, and for Chapter 13 it is $313. These fees are set by the federal courts and are non-refundable. Attorney fees vary widely based on the complexity of your case and the attorney's experience. For a straightforward Chapter 7 case, attorney fees in New Jersey typically range from $1,500 to $3,500. Chapter 13 cases are more complex and usually cost between $3,000 and $6,000, with some of these fees paid through the repayment plan. Many bankruptcy lawyers offer payment plans, allowing you to pay attorney fees in installments before filing. Some lawyers require full payment before filing for Chapter 7, while others may accept a partial payment and a payment plan for the balance. 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 U.S. Bankruptcy Court for the District of New Jersey maintains a list of approved credit counseling agencies that offer low-cost or free services.

Life after bankruptcy presents both challenges and opportunities for rebuilding. A Chapter 7 discharge remains on your credit report for ten years from the filing date, while a Chapter 13 discharge remains for seven years. During this time, you can begin rebuilding your credit by obtaining a secured credit card, making all payments on time, and keeping credit utilization low. Some debts survive bankruptcy and cannot be discharged. These include most student loans (unless you can prove undue hardship in an adversary proceeding), recent income taxes (less than three years old), child support and alimony obligations, debts for personal injury caused by drunk driving, and debts incurred through fraud or willful misconduct. Additionally, if you have a mortgage or car loan and want to keep the property, you must continue making payments or reaffirm the debt. A New Brunswick bankruptcy lawyer can advise you on which debts will be discharged and which will remain. With careful planning and disciplined financial habits, many individuals and businesses emerge from bankruptcy stronger and more financially stable.