Your income determines which chapter you can file, plan length, and payment amount. Here are New Jersey income thresholds for the District of New Jersey.
The means test compares your income (averaged over 6 months, annualized) to the New Jersey median:
Updated periodically by the Census Bureau and U.S. Trustee Program.
Included: Wages, salary, tips, bonuses, net business income, rental income, pension, unemployment, workers' comp, alimony/child support received, regular household contributions.
Excluded: Social Security benefits, payments to victims of war crimes/terrorism, certain disability payments.
The 6-month lookback means timing matters:
Chapter 7 means test threshold: $68,047 for 1 person. Below = automatic pass. Above = detailed calculation. Chapter 13 has no income limit.
Yes. Many above-median filers pass after deductions. Chapter 13 has no income ceiling.
If filing jointly, both incomes count. If filing alone, spouse's income may be included as a household contribution but offset by their expenses.
Total countable income for 6 full calendar months before filing, divided by 6 for monthly, multiplied by 12 for annual. Compare to New Jersey median.
Yes. Job loss or reduced hours push higher-income months out of the 6-month window. An attorney can calculate optimal timing.
Use our free screener to check if prior filings affect your eligibility for a new bankruptcy discharge.
Free Discharge Screener How to File Guide