What is the bankruptcy means test?

The bankruptcy means test determines whether you qualify to file Chapter 7 bankruptcy. It compares your average monthly income over the past 6 months to your state's median income. If you're below the median, you automatically qualify. If above, you must pass a second part examining disposable income.

How much debt do you need to file bankruptcy?

There is no minimum debt amount required to file bankruptcy. However, most bankruptcy attorneys recommend filing only when debt exceeds what you can realistically repay within 5 years, typically $10,000 or more.

How long does bankruptcy stay on your credit report?

Chapter 7 bankruptcy stays on your credit report for 10 years from the filing date. Chapter 13 bankruptcy stays for 7 years. Both affect your ability to get new credit, but the impact diminishes over time as you rebuild.

What states does this calculator support?

BankruptcyByState.net supports bankruptcy means test calculations for all 50 states using current federal and state-specific median income figures.

In New Jersey, does my income determine my Chapter 13 plan length?

Yes. In New Jersey, filers with income at or below $82,632/year (1 person) or $137,232/year (4 people) use a 36-month plan. Filers above the median must use a 60-month plan.

What is the median income for New Jersey Chapter 13 in 2026?

The 2026 New Jersey median income used to determine Chapter 13 plan length: 1 person $82,632/year, 2 people $103,608/year, 3 people $120,120/year, 4 people $137,232/year.

Can I modify my Chapter 13 plan in New Jersey if my income changes?

Yes. You can file a motion to modify your Chapter 13 plan in New Jersey if your income decreases or expenses increase. Modifications can include reducing monthly payments or extending the plan up to the 60-month maximum.

New Jersey Chapter 13 Bankruptcy Calculator 2026

Chapter 13 bankruptcy — the "reorganization" chapter — lets you keep all assets while repaying some or all of your debts through a court-approved 3-to-5-year plan. In New Jersey, your plan length depends on your income relative to New Jersey's median income: filers at or below the median use a 36-month plan; filers above the median use a 60-month plan.

For a single person in New Jersey, the 2026 median income is $82,632/year ($6,886/month). For a family of four it is $137,232/year ($11,436/month). Your monthly Chapter 13 payment equals your "projected disposable income" — income after subtracting IRS-allowed expenses and secured debt payments — multiplied by the number of plan months.

New Jersey 2026 Median Income — Plan Length Reference

Household Size	Annual Median	Monthly Median	Plan Length if Below	Plan Length if Above
1 person	$82,632	$6,886	36 months	60 months
2 people	$103,608	$8,634	36 months	60 months
3 people	$120,120	$10,010	36 months	60 months
4 people	$137,232	$11,436	36 months	60 months

Frequently Asked Questions

How long will my Chapter 13 plan last in New Jersey?

Your Chapter 13 plan length in New Jersey is determined by your income. If your average monthly income for the 6 months before filing is at or below New Jersey's median ($6,886/month for 1 person), the minimum plan length is 36 months. If you are above the median, the plan must be 60 months. Your plan can be shorter than these minimums only if you pay all allowed claims in full before the plan period ends.

What debts are paid in a New Jersey Chapter 13 plan?

Chapter 13 plans in New Jersey pay debts in priority order: (1) secured debts like mortgage arrears and car loans — you must pay enough to keep secured assets; (2) priority unsecured debts like recent taxes and domestic support obligations — must be paid in full; (3) general unsecured debts like credit cards and medical bills — paid pro rata from remaining disposable income, often at pennies on the dollar or even 0% if disposable income is zero.

Can Chapter 13 save my home from foreclosure in New Jersey?

Yes. Chapter 13 is the primary tool for stopping foreclosure and catching up on mortgage arrears in New Jersey. The automatic stay halts all collection actions the moment you file. You then include your mortgage arrears in your Chapter 13 plan and repay them over 3 to 5 years while continuing regular monthly mortgage payments. As long as you complete the plan and stay current on post-petition payments, the lender cannot proceed with foreclosure.