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.

What is the Chapter 7 income limit for a family of four in New Jersey?

For a four-person household in New Jersey, the 2026 Chapter 7 median income limit is $137,232 per year ($11,436 per month). Each additional household member beyond four adds approximately $9,900/year to the threshold.

What income is excluded from the New Jersey Chapter 7 means test?

Social Security retirement and disability benefits are explicitly excluded from means test income in New Jersey as in every state. Veterans' disability benefits and certain other government assistance payments may also be excluded.

New Jersey Chapter 7 Means Test Calculator 2026

To qualify for Chapter 7 bankruptcy in New Jersey, your average monthly income over the 6 months before filing must fall at or below New Jersey's state median income for your household size. If your income exceeds the median, you may still qualify by completing the disposable income test — subtracting IRS-allowed monthly expenses from your income. Both steps use 2026 US Trustee Program figures for New Jersey.

Chapter 7 discharges most unsecured debts (credit cards, medical bills, payday loans) within 3 to 6 months. Unlike Chapter 13, there are no monthly payments — but a trustee can liquidate non-exempt assets. New Jersey's exemption laws protect up to $0 in home equity, $0 in vehicle equity, and all qualified retirement accounts. See the full exemption table below.

New Jersey 2026 Chapter 7 Median Income Thresholds

Household Size	Annual Income Limit	Monthly Income Limit
1 person	$82,632	$6,886
2 people	$103,608	$8,634
3 people	$120,120	$10,010
4 people	$137,232	$11,436
5 people	$147,132	$12,261
6 people	$157,032	$13,086

New Jersey Bankruptcy Exemptions Summary

Asset Type	Protected Amount	Notes
Homestead / Home Equity	$0	No homestead exemption
Vehicle	None	No vehicle exemption
Retirement Accounts	100%	All qualified plans fully protected
Wildcard Exemption	$1,000	Can apply to any asset
Personal Property	$1,000	—
Wages	90% if earning less than 250% poverty level	—

Frequently Asked Questions

What is the Chapter 7 income limit for a single person in New Jersey in 2026?

For a single-person household, the 2026 Chapter 7 median income limit in New Jersey is $82,632 per year ($6,886 per month). If your average monthly income over the past 6 months is at or below this amount, you automatically pass the means test and qualify for Chapter 7.

What happens if my income is above the New Jersey median?

If your income exceeds New Jersey's median, you proceed to the disposable income test: you subtract IRS-allowed monthly expenses (housing, food, transportation, healthcare) and secured debt payments from your monthly income. If your remaining disposable income is below $166.67/month (or less than $10,000 over 60 months), you still qualify for Chapter 7. Above those thresholds, Chapter 13 may be your best option.

Can I keep my house if I file Chapter 7 in New Jersey?

New Jersey's homestead exemption protects $0 in home equity (No homestead exemption). If your equity is within this limit and you are current on your mortgage (or reaffirm the debt), you can typically keep your home in Chapter 7. If your equity exceeds the exemption, the trustee may require a sale unless you can pay the non-exempt amount.