EXCLUSIVE

Karma Club in Seaside Heights, NJ has filed for Chapter 11 bankruptcy ... this according to new legal docs obtained by TMZ. In docs, the club says it owes between $1 million and $10 million, and has less than $50k in assets.

According to the docs, Karma owes money to some Jersey heavy hitters:

-- $1,324,068.14 to the NJ Economic Development Authority

-- $1,626,892.05 to 2 banks

-- $473,946 to the NJ Division of Taxation

-- $91,064 to the NJ Division of Fire Safety

-- $21,181.43 for booze

The filing is an attempt to get the creditors off Karma's back while it gets its financial crap together. The great news for Jersey juiceheads is ... the club's free to continue operating while this plays out in bankruptcy court.