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New Jersey criminal charge

Fraud in insolvency in New Jersey

Current through 2026 New Jersey legislative session

Fraud in insolvency is a criminal offense under New Jersey law, defined by N.J.S.A. 2C:21-13. Its classification is not fixed: New Jersey assigns a different penalty class depending on the circumstances of the offense. The class that applies — and the sentencing range that follows from it — depends on which statutory variant fits the facts.

Defined by N.J.S.A. 2C:21-13.

What is the penalty for fraud in insolvency in New Jersey?

Penalties for Fraud in insolvency
PenaltyRangeBasisAuthority
Jail / prison5 years to 10 years (Fraud in insolvency — benefit $75,000 or more — The benefit derived from the violation is $75,000.00 or more.; presumption of imprisonment (2C:44-1(d)))presumptiveN.J.S.A. 2C:43-6
Fineup to $150,000 (Fraud in insolvency — benefit $75,000 or more — The benefit derived from the violation is $75,000.00 or more.; or up to double gain/loss (2C:43-3); offense-specific ceilings may exceed)discretionaryN.J.S.A. 2C:43-6
Jail / prison3 years to 5 years (Fraud in insolvency — benefit over $1,000 but under $75,000 — The benefit derived exceeds $1,000.00 but is less than $75,000.00.; first-offender presumption of non-incarceration may apply (2C:44-1(e), carve-outs))presumptiveN.J.S.A. 2C:43-6
Fineup to $15,000 (Fraud in insolvency — benefit over $1,000 but under $75,000 — The benefit derived exceeds $1,000.00 but is less than $75,000.00.; or up to double gain/loss (2C:43-3); offense-specific ceilings may exceed)discretionaryN.J.S.A. 2C:43-6
Jail / prisonup to 18 months (Fraud in insolvency — benefit $1,000 or less — The benefit derived from the violation is $1,000.00 or less.; first-offender presumption of non-incarceration may apply (2C:44-1(e), carve-outs))discretionaryN.J.S.A. 2C:43-6
Fineup to $10,000 (Fraud in insolvency — benefit $1,000 or less — The benefit derived from the violation is $1,000.00 or less.; or up to double gain/loss (2C:43-3))discretionaryN.J.S.A. 2C:43-6

Applies to current.

How is fraud in insolvency classified in New Jersey?

The classification depends on the circumstances:

Classification variants for Fraud in insolvency
VariantClassificationWhen it appliesStatute
Fraud in insolvency — benefit $75,000 or moreCrime of the Second DegreeThe benefit derived from the violation is $75,000.00 or more.N.J.S.A. 2C:21-13undefined
Fraud in insolvency — benefit over $1,000 but under $75,000Crime of the Third DegreeThe benefit derived exceeds $1,000.00 but is less than $75,000.00.N.J.S.A. 2C:21-13undefined
Fraud in insolvency — benefit $1,000 or lessCrime of the Fourth DegreeThe benefit derived from the violation is $1,000.00 or less.N.J.S.A. 2C:21-13undefined

Common questions about fraud in insolvency in New Jersey

What degree of offense is fraud in insolvency in New Jersey?

It depends on the circumstances: fraud in insolvency ranges from a Crime of the Fourth Degree to a Crime of the Second Degree in New Jersey under N.J.S.A. 2C:21-13.

Fraud in insolvency — benefit $75,000 or more: Crime of the Second Degree (N.J.S.A. 2C:21-13) · Fraud in insolvency — benefit over $1,000 but under $75,000: Crime of the Third Degree (N.J.S.A. 2C:21-13) · Fraud in insolvency — benefit $1,000 or less: Crime of the Fourth Degree (N.J.S.A. 2C:21-13)

What are the penalties for fraud in insolvency in New Jersey?

Penalties for fraud in insolvency in New Jersey depend on how it is classified — from a Crime of the Fourth Degree up to a Crime of the Second Degree — with the ranges set by N.J.S.A. 2C:43-6; the full table of ranges by variant is published on this page.

Which New Jersey statute covers fraud in insolvency?

Fraud in insolvency is governed by N.J.S.A. 2C:21-13 (Fraud in insolvency).

Legal terms used in this law

This reference is informational and is not legal advice. Penalty ranges are the statutory classification ranges; sentencing in a specific case depends on its facts and history.