Ocean County Bankruptcy Attorney Daniel Straffi Jr. Explains How Often Individuals Can File for Bankruptcy in New Jersey

TOMS RIVER, NJ - New Jersey residents facing financial hardship can file for bankruptcy protection multiple times throughout their lifetime, but federal law requires specific waiting periods between filings depending on the bankruptcy chapters involved. Ocean County bankruptcy attorney Daniel Straffi Jr. of Straffi & Straffi Attorneys at Law (https://www.straffilaw.com/how-often-can-you-file-for-bankruptcy-in-new-jersey/) outlines the timing requirements, eligibility rules, and strategic considerations for individuals who need to file bankruptcy again.

According to Ocean County bankruptcy attorney Daniel Straffi Jr., there is no lifetime limit on the number of bankruptcy cases an individual may file in New Jersey. However, the ability to receive a discharge of debts in a subsequent case depends on the types of bankruptcy filed previously and the amount of time that has elapsed. Federal law establishes mandatory waiting periods measured from the filing date of the prior case, not from the discharge date.

Ocean County bankruptcy attorney Daniel Straffi Jr. emphasizes that the waiting periods vary significantly based on which bankruptcy chapters are involved. When filing Chapter 7 after a previous Chapter 7 discharge, individuals must wait eight years. Those seeking Chapter 13 relief after receiving a Chapter 7 discharge must wait four years. Individuals filing Chapter 7 after completing Chapter 13 generally must wait six years, though exceptions exist when the prior Chapter 13 plan paid at least 70 percent of unsecured claims in good faith or 100 percent of all unsecured claims. The shortest waiting period applies to consecutive Chapter 13 filings, which require only two years between filing dates.

"Multiple filings are sometimes necessary due to job loss, unexpected medical expenses, or divorce," notes Straffi. "Strategic timing ensures individuals can receive a discharge when filing again rather than simply obtaining temporary relief through the automatic stay."

The automatic stay is a powerful court order that immediately halts most collection activities, lawsuits, wage garnishments, and foreclosure proceedings when a bankruptcy petition is filed. This protection provides breathing room for individuals to work through the bankruptcy process. In repeat filings, however, courts may scrutinize whether the new case was filed in good faith, particularly if previous cases were dismissed. Straffi advises that demonstrating changed circumstances and a realistic repayment plan strengthens the argument that a subsequent filing serves a legitimate purpose.

New Jersey bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of New Jersey, which operates three divisions based on county of residence. Ocean County residents file cases in the Trenton division at the Clarkson S. Fisher U.S. Courthouse. The court handles both Chapter 7 liquidation cases and Chapter 13 reorganization cases. Chapter 7 typically eliminates most unsecured debts within three to six months through liquidation of non-exempt assets, while Chapter 13 creates a three-to-five-year repayment plan that allows individuals to keep their property while making monthly payments to creditors.

Straffi points out that even when the waiting period has not yet expired, individuals may still file a new bankruptcy case for purposes other than receiving a discharge. This strategy can provide temporary automatic stay protection to prevent foreclosure or vehicle repossession while alternative solutions are pursued. However, the court will not grant a discharge of debts if the mandatory waiting period has not passed.

Several factors can prevent an individual from receiving a bankruptcy discharge even when the waiting period has been satisfied. The court requires filers to provide documentation including recent tax returns, pay stubs covering the 60 days before filing, proof of completed credit counseling within 180 days before filing, and proof of a financial management course completed after filing. Failure to provide these documents on time, committing fraud or perjury, hiding assets, or failing to comply with court orders can result in discharge denial.

"Credit counseling and financial management courses are mandatory components of the bankruptcy process," explains Straffi. "The credit counseling must be completed before filing, while the financial management course must be finished after filing but before discharge."

Multiple bankruptcy filings significantly impact credit scores and financial opportunities. Chapter 7 bankruptcy remains on credit reports for ten years from the filing date, while Chapter 13 stays on reports for seven years. Each filing compounds the negative effect on creditworthiness. Lenders, employers conducting credit checks, and landlords may view multiple filings unfavorably, making it more difficult to obtain credit, secure certain employment positions, or rent housing.

Straffi advises that rebuilding credit after multiple bankruptcies requires discipline and proven strategies. Creating and following a realistic budget, building an emergency fund, obtaining a secured credit card and using it responsibly, making all payments on time, and monitoring credit reports regularly all contribute to financial recovery. Nonprofit credit counseling agencies approved by the U.S. Trustee Program provide post-bankruptcy financial education and budgeting assistance to help individuals develop personalized recovery plans.

Working with an experienced bankruptcy attorney becomes particularly important in repeat filings. Courts may apply stricter scrutiny to determine whether a new case was filed in good faith, especially when prior cases were dismissed. An attorney can help determine the optimal filing window based on prior case dates and changed circumstances, maximize asset protection by choosing between federal and state exemption systems, prepare documentation demonstrating good faith, and navigate court procedures to avoid technical mistakes that could lead to dismissal.

For individuals in New Jersey facing financial challenges, understanding bankruptcy timing requirements and working with qualified legal counsel can make a critical difference in achieving debt relief and financial recovery. Those considering bankruptcy protection should consult with an attorney familiar with local court procedures and federal bankruptcy law.

About Straffi & Straffi Attorneys at Law:

Straffi & Straffi Attorneys at Law is a Toms River-based law firm dedicated to bankruptcy law and debt relief. Led by attorney Daniel Straffi Jr., an active member of the New Jersey and Ocean County Bar Associations serving as Co-Chair of the Bankruptcy Panel, the firm represents individuals and businesses throughout Ocean County and New Jersey. The firm maintains offices conveniently located near the Clarkson S. Fisher U.S. Courthouse in Trenton, which handles all Ocean County bankruptcy cases. For consultations, call (732) 341-3800.

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Phone: (732) 341-3800
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