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.
Chapter 7 means test threshold: $68,047 for 1 person. Below = automatic pass. Above = detailed calculation. Chapter 13 has no income limit.
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.
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