Toms River, New Jersey - Daniel Straffi, Jr., a New Jersey bankruptcy lawyer with Straffi & Straffi Attorneys at Law (https://www.straffilaw.com/what-disqualifies-you-from-filing-bankruptcies/), has released guidance outlining the key factors that can disqualify individuals from filing for bankruptcy protection and from receiving a discharge. The advisory addresses common eligibility hurdles, provides current income thresholds and exemption options, and explains how recent dismissals, fraud concerns, and prior discharges can affect access to relief. The resource aims to help New Jersey residents evaluate options and prepare accurate, complete filings under federal and state law.
The guidance clarifies eligibility considerations under the means test and highlights New Jersey’s choice between state and federal exemptions. A New Jersey bankruptcy lawyer can analyze household income against the 2025 median figures and, when necessary, apply the second part of the means test that evaluates allowable expenses and disposable income. If the calculation shows insufficient eligibility for Chapter 7, Chapter 13 may still be available for a structured repayment plan of three to five years, subject to regular, documentable income from wages, self-employment, rental payments, or family support.
The advisory also details exemptions that protect assets during a filing. New Jersey debtors may elect state or federal exemptions, not a mix. Under the federal scheme referenced for 2025, the homestead exemption covers up to $31,575 in equity, the motor vehicle exemption covers up to $5,025, and personal property protections include up to $800 per item within a $16,850 aggregate and $2,125 for jewelry. The wildcard exemption permits up to $1,675 in any property plus unused homestead amounts up to $15,800. New Jersey state exemptions permit up to $1,000 in personal property and an additional $1,000 for furniture and household goods. Most tax-qualified retirement accounts remain protected. A New Jersey bankruptcy lawyer can evaluate which exemption set better preserves a filer’s residence, vehicle, household goods, and retirement savings.
Income-based eligibility is only one aspect of disqualification. The guidance explains that a case dismissed within the last 180 days for failure to follow court orders or for voluntary dismissal after a creditor sought relief from the automatic stay will bar a new filing during that window. Findings of fraud — such as concealment of assets, misstatements on schedules, or recent luxury spending without repayment intent — can lead to denial of discharge and additional consequences. Prior discharges also control timing: a Chapter 7 discharge within eight years, or a Chapter 13 discharge within six years, limits when a debtor may obtain a new Chapter 7 discharge. The resource further underscores that certain debts remain non-dischargeable, including domestic support obligations, many recent tax liabilities unless they meet age and filing criteria, and most student loans absent a court finding of undue hardship.
The publication outlines frequent filing errors that jeopardize relief: failing to complete approved credit counseling within 180 days pre-petition, omitting assets or income, making preferential transfers within 90 days to creditors or within one year to insiders, incurring new debts without repayment intent, and missing required hearings or court directives. By addressing these pitfalls in advance, filers can present accurate schedules, verify eligibility with the 2025 median income levels for New Jersey households of 1 through 10 persons ($84,257 to $229,710), and select the exemption framework that best aligns with individual financial goals.
About Straffi & Straffi Attorneys at Law:
Straffi & Straffi Attorneys at Law is a New Jersey law firm serving clients in bankruptcy, family law, and related civil matters throughout Ocean County, Monmouth County, and surrounding communities. Led by Daniel Straffi, Jr., the firm represents individuals and businesses in Chapter 7 and Chapter 13 matters, debt negotiations, and financial restructurings. The team also assists with mediation and court-connected settlement programs across the region. For consultations, contact Straffi & Straffi Attorneys at Law at (732) 341-3800 or visit the firm’s website to schedule a confidential case review.
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Phone: (732) 341-3800
Address:670 Commons Way
City: Toms River
State: New Jersey 08755
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Website: https://www.straffilaw.com/
