There is no lifetime limit on how many times you can file for bankruptcy in New Jersey. However, there is a waiting period to file a new bankruptcy case if you’ve previously filed one. The length of the waiting period depends on the types of bankruptcy you’ve filed and the new one you’re filing.
At Straffi & Straffi Attorneys at Law, Daniel Straffi Jr. helps families and businesses throughout Ocean County and Toms River understand bankruptcy timing rules. Our bankruptcy lawyers in New Jersey work from offices conveniently located near the Clarkson S. Fisher U.S. Courthouse, which handles all Ocean County bankruptcy cases.
This guide covers New Jersey’s bankruptcy waiting periods, eligibility requirements for multiple filings, common discharge obstacles, and how to time a repeat bankruptcy case for the best outcome.
Contact Straffi & Straffi at (732) 341-3800 to schedule a free consultation. We help clients through Chapter 7 and Chapter 13 filings and can help determine which type of bankruptcy best fits your circumstances and the most favorable timing possible.
What Is Bankruptcy and How Does It Work?
Bankruptcy is a legal process that eliminates or reorganizes debt when you cannot repay it. It can provide a fresh start by discharging certain debts or creating a manageable repayment plan.
When you file for bankruptcy, you are granted an automatic stay. An automatic stay is a powerful, immediate court order that pauses most collection calls, lawsuits, wage garnishments, and other debt pressure as soon as you file for bankruptcy. It gives you breathing room to work through the bankruptcy process.
A bankruptcy discharge is a permanent court order that wipes out your personal legal responsibility to pay certain debts. However, not all debts can be discharged through bankruptcy. Student loans, recent taxes, child support, and alimony typically survive bankruptcy. A New Jersey bankruptcy attorney can explain which debts may be eliminated in your case.
Key Takeaway: Bankruptcy stops creditor actions and eliminates or reorganizes debt through a federal court process. New Jersey cases are filed in one of three divisions based on your county of residence.
What are the Common Types of Bankruptcy in New Jersey?
The most common types of bankruptcy filed in New Jersey are Chapter 7 and Chapter 13. Each has different eligibility rules, costs, and outcomes.
The U.S. Bankruptcy Court for the District of New Jersey handles all cases in the state with three bankruptcy divisions: Newark (northern counties), Trenton (central counties, including Ocean County), and Camden (southern counties). Cases from Toms River and the surrounding areas are filed in the Trenton division.
Chapter 7 Bankruptcy (Liquidation)
Chapter 7 bankruptcy is a court-supervised legal process designed to help eligible individuals eliminate certain debts by liquidating or selling non-exempt assets, if any are available. It doesn’t “erase” all debt automatically; it can discharge or wipe out many qualifying unsecured debts after the court process is completed, while some debts may remain.
Under 11 U.S.C. § 727, Chapter 7 can eliminate most unsecured debts, such as credit cards, medical bills, and many personal loans, typically within three to six months. A court-appointed trustee reviews your finances and may sell non-exempt assets to repay creditors. However, most filers keep all their property because bankruptcy exemptions often protect what they own.
You must pass the means test to qualify. This test compares your income to New Jersey’s median income for your household size. If you earn less than the median, you automatically qualify.
New Jersey filers can choose between federal exemptions and state exemptions. However, you cannot mix the two systems. As of April 1, 2025, federal exemptions include a homestead exemption in an amount set by federal law and adjusted every three years. A homestead exemption is a provision that can reduce homeowners’ property taxes. This exemption also helps protect a portion or all of the equity in their home in the event of financial hardship or bankruptcy.
State exemptions do not include a general homestead exemption but protect certain personal property and retirement accounts.
Chapter 13 Bankruptcy (Reorganization)
Chapter 13 creates a three-to-five-year repayment plan. You keep all assets while making monthly payments to creditors. This option works well for people who have a regular income and want to catch up on mortgage or car payments.
You must have a regular income to qualify for a Chapter 13 bankruptcy. In addition, your secured and unsecured debts must be below federal limits because Chapter 13 eligibility is restricted by statute 11 U.S.C. § 109(e). These limits adjust regularly, so check current amounts with a bankruptcy attorney.
Key Takeaway: Chapter 7 quickly eliminates debt but may involve asset liquidation. Chapter 13 protects assets while you repay debts over three to five years with regular income.
How Long Must You Wait Between Bankruptcy Filings in New Jersey?
Waiting periods depend on the type of bankruptcy you filed before and the type you want to file now. These waiting periods start from the first case’s filing date, not the discharge date.
Waiting periods between filings are set by federal law. They apply in every state, including New Jersey. The Clarkson S. Fisher U.S. Courthouse in Trenton, which serves Ocean County residents, follows these same federal timing rules.
| First bankruptcy filed | New bankruptcy filed | Waiting period to receive a discharge | Notes/exceptions |
|---|---|---|---|
| Chapter 7 | Chapter 7 | 8 years | You can file sooner for other purposes, but you won’t receive a discharge of debts. |
| Chapter 7 | Chapter 13 | 4 years | The waiting period is measured from the Chapter 7 filing date. |
| Chapter 13 | Chapter 7 | 6 years | Exception: no 6-year wait if the Chapter 13 plan paid 100% of unsecured claims, or paid at least 70% in good faith. |
| Chapter 13 | Chapter 13 | 2 years | The waiting period is measured from the most recent Chapter 13 filing date. |
Can You File Bankruptcy Multiple Times?
Yes, you can file for bankruptcy multiple times during your lifetime. There is no limit on how many times you can file. However, your ability to receive a discharge in each case depends on timing and previous filings.
You may be allowed to file a new bankruptcy case before the waiting period has passed; however, your application may be denied and not result in a discharge. Filing without discharge eligibility can still provide temporary relief through the automatic stay. This can stop foreclosure or repossession while you work out other solutions.
Some people need to file multiple times due to job loss, medical bills, or divorce. Strategic timing ensures you can receive a discharge when filing again. A bankruptcy attorney can help you plan the most favorable timing for your situation.
What Can Prevent You from Receiving a Bankruptcy Discharge?
Even if you file for bankruptcy, the court may deny your discharge under certain circumstances. Understanding these situations helps you avoid common pitfalls.
To receive a discharge, you must provide several documents to the bankruptcy trustee:
- Tax returns for the most recent tax year filed before your bankruptcy case
- Pay stubs or income documentation covering the 60 days immediately before filing
- Proof of completed credit counseling course obtained within 180 days before filing
- Proof of completed financial management course finished after filing but before discharge
- Additional documents requested by your trustee, which may include bank statements, property deeds, or vehicle titles
Failing to provide these documents on time can delay or prevent your discharge.
Fraudulent Activities
The court will deny discharge if you hide assets, give false information, or commit perjury. Bankruptcy requires complete honesty about your finances. Concealing assets or lying on forms can result in criminal charges in addition to discharge denial.
Failure to Complete Required Courses
You must complete two courses to receive a discharge: the credit counseling and financial management courses. The Credit Counseling course must be completed within 180 days before filing. New Jersey debtors can choose from multiple approved credit counseling agencies, including in-person, phone, and online providers listed by the U.S. Trustee Program.
The Financial Management course must be completed after filing but before discharge. The United States Trustee Program has accredited courses offered at no cost. These courses typically take 1 to 2 hours to complete.
Failure to Comply with Court Orders
In Chapter 13 cases, you must make all plan payments on time. If you miss payments without valid reasons, the court may deny your discharge. You must also provide the required documents to the trustee and attend the required meetings.
Previous Bankruptcy Discharges Too Recent
If you received a discharge too recently, you cannot receive another discharge yet. This is where the waiting periods discussed earlier apply. Filing before the waiting period expires means automatic discharge denial.
How Do Frequent Bankruptcy Filings Affect Your Credit?
Multiple bankruptcy filings significantly damage your credit score. Each filing appears on your credit report and lowers your score. Careful consideration of these consequences helps you make informed decisions.
Credit Score Impact
Chapter 7 bankruptcy remains on your credit report for ten years from the filing date. A Chapter 13 filing can stay on your credit score for seven years after filing. Multiple filings compound the negative effect. Your credit score may drop 100 to 200 points or more.
Difficulty Obtaining New Credit
After multiple bankruptcies, lenders view you as high risk. You may be denied credit entirely. If approved, expect stricter terms and higher interest rates. Building credit after multiple bankruptcies requires patience and disciplined financial management.
Employment and Housing Challenges
Some employers conduct credit checks during hiring, especially for positions involving financial responsibilities. In New Jersey, landlords may also review your credit history. Multiple bankruptcies can affect your ability to secure certain jobs or rental housing.
Banks may review credit history when applying for loans or other banking services. Rebuilding credit after bankruptcy helps you access better financial products over time.
Key Takeaway: Multiple bankruptcies severely impact a credit score for seven to ten years. They make it harder to obtain financing, employment, and housing.
How Can You Rebuild Credit After Multiple Bankruptcies?
Rebuilding credit after bankruptcy takes time and discipline. Following proven strategies helps you recover financially and improve your creditworthiness.
Create and Follow a Budget
Develop a realistic budget that accounts for all income and expenses. Track your spending carefully. Prioritize essential expenses, such as housing, utilities, and food. Avoid accumulating new debt.
Build an Emergency Fund
Save money gradually to create an emergency fund. Even small amounts help. Having savings prevents you from relying on credit when unexpected expenses arise. Start with a goal of $500 to $1,000, then build to three months of expenses.
Obtain a Secured Credit Card
Secured credit cards require a cash deposit as collateral. They help rebuild credit when used responsibly. Make small purchases and pay the full balance each month. This demonstrates creditworthiness to credit bureaus.
Make All Payments On Time
Pay every bill on time, including credit cards, utilities, rent, and loans. Payment history is the most crucial factor in your credit score. Set up automatic payments to avoid missed deadlines.
Use Credit Counseling Services
Many approved New Jersey credit counseling agencies that provide pre-bankruptcy counseling also offer post-bankruptcy financial education. These nonprofit agencies help you develop a personalized plan for financial recovery. Services may include budgeting assistance, debt management advice, and credit rebuilding strategies.
Monitor Your Credit Reports
Check your credit reports regularly from all three major credit bureaus. Look for errors and dispute inaccuracies immediately. You are entitled to free credit reports annually through authorized services.
Bankruptcy Lawyers in New Jersey – Straffi & Straffi Attorneys at Law
Daniel Straffi Jr.
- Judicial law clerk to the Presiding Judge of Family Law in Mercer County, Hon. Lee Forrester, P.J.F.P.
- Active member of the New Jersey and Ocean County Bar Associations, serving as Co-Chair of the Bankruptcy Panel
- Certified mediator and early settlement panelist in Ocean County, promoting practical, resolution-driven approaches to financial disputes
How a Bankruptcy Attorney Helps You Time a Repeat Filing and Prove Good Faith
Working with an experienced bankruptcy attorney improves your chances of a successful outcome, especially after multiple filings. The court may apply stricter rules to the automatic stay and scrutinize whether the new case was filed in good faith. An attorney can help you navigate timing requirements, protect your assets, and prepare the evidence needed to keep your case on track.
Determining the Right Bankruptcy Chapter
An attorney evaluates your finances and goals to recommend which type of bankruptcy is best for you, between Chapter 7 and Chapter 13. They can explain the benefits and drawbacks of each option and advise whether bankruptcy is the best solution or if an alternative, like negotiation or loan modification, may work better.
Maximizing Asset Protection
New Jersey filers must choose between federal and state exemption systems and cannot mix them. An attorney reviews your home equity, vehicle equity, retirement accounts, cash, and personal property under both systems and recommends the approach that protects the most. This choice can be critical for preserving property in a repeat filing.
Strategic Timing and Automatic Stay Protection in Multiple Filings
Timing matters more when you file again. A lawyer can map out the safest filing window based on your prior case dates, income changes, and upcoming creditor actions to help you pursue meaningful relief, not just a short delay. Your attorney can also determine whether the automatic stay will be limited or unavailable because of prior dismissals and, when necessary, quickly ask the court to extend or impose the stay to stop foreclosure, repossession, wage garnishment, or lawsuits.
Proving Good Faith in a Repeat Bankruptcy Filing
Multiple filings can trigger a presumption that a new case was filed in bad faith. A bankruptcy attorney helps you rebut that presumption by building a clear, documented explanation of why filing again is legitimate and why the case is likely to succeed. This may include gathering proof of changed circumstances (new employment, stabilized income, resolved medical issues, updated support obligations, or reduced expenses), creating a realistic budget or Chapter 13 plan, and explaining what caused the prior case to fail and how the issues have been corrected.
Navigating Court Procedures and Avoiding Dismissal
Repeat cases leave less room for errors. Bankruptcy involves complicated paperwork, strict deadlines, and required appearances. An attorney can help prepare and file documents correctly, communicate with trustees, respond to creditor objections, and represent you at hearings. This reduces stress and helps prevent technical mistakes that can lead to dismissal, especially when the court is watching the case more closely.
For example, seasonal workers in Ocean County may need to time a filing around predictable income swings. A skilled attorney can help choose a filing date that reflects stable income, supports a feasible budget or repayment plan, and strengthens the argument that the new case is filed in good faith.
Consult Our Top-Rated New Jersey Bankruptcy Lawyers Today
Mounting debt and financial challenges require informed decisions and experienced legal guidance. You deserve a fresh start and the opportunity to rebuild your financial future. Whether you need to file for the first time or understand waiting periods between cases, professional assistance makes a critical difference.
Daniel Straffi Jr. and the team at Straffi & Straffi Attorneys at Law have helped individuals and businesses throughout New Jersey, Ocean County, and Toms River navigate the bankruptcy process successfully. Our bankruptcy lawyers understand local court procedures at the Clarkson S. Fisher U.S. Courthouse in Trenton. We bring decades of trustee service and courtroom experience to every case.
Call (732) 341-3800 for a free consultation. With offices in Toms River, Straffi & Straffi serves Ocean County residents and businesses throughout New Jersey, reviewing your financial situation and explaining options for the most favorable timing possible.
