TOMS RIVER, NJ - Individuals and businesses in New Jersey facing overwhelming debt often have questions about what bankruptcy can and cannot eliminate, and what the process looks like from filing through discharge. New Jersey bankruptcy discharge attorney Daniel Straffi Jr. of Straffi & Straffi Attorneys at Law (https://www.straffilaw.com/bankruptcy-discharge-lawyer/) explains how bankruptcy discharge works under both Chapter 7 and Chapter 13, which debts can be eliminated, and what debtors can expect after a discharge order is entered.
According to New Jersey bankruptcy discharge attorney Daniel Straffi Jr., a bankruptcy discharge is a court order that permanently eliminates a debtor's personal liability for certain debts, after which creditors are prohibited from pursuing collection through phone calls, lawsuits, wage garnishments, or bank levies. Chapter 7 bankruptcy typically produces a discharge within three to four months of filing with the United States Bankruptcy Court for the District of New Jersey, while Chapter 13 requires completion of a three-to-five-year repayment plan before discharge is granted. "One of the most common misconceptions is that bankruptcy eliminates all debts," Straffi Jr. explains. "Understanding exactly what survives a discharge, and what doesn't, is essential before deciding how to proceed."
New Jersey bankruptcy discharge attorney Daniel Straffi Jr. notes that eligibility for Chapter 7 requires passing a means test comparing household income against New Jersey's current median income for the applicable household size. Filers whose income falls below the median generally qualify; those above the median must complete a more detailed calculation accounting for allowable expenses to determine whether sufficient disposable income remains to fund a Chapter 13 plan. Both Chapter 7 and Chapter 13 also require completion of an approved credit counseling course before filing and a debtor education course before receiving a discharge.
Several categories of debt remain nondischargeable regardless of which chapter is filed. Child support and alimony obligations survive bankruptcy in full, as do most student loans, which require a separate adversary proceeding and proof of undue hardship to discharge under the applicable court standard. Recent tax debts, debts arising from fraud or false pretenses, debts from willful and malicious injury, and court-ordered fines and penalties are also nondischargeable. "People are sometimes surprised to learn that certain obligations don't disappear," Straffi Jr. advises. "A thorough review of every debt before filing is the only way to set accurate expectations."
Chapter 13 offers distinct advantages for debtors who have assets they want to protect or who need to catch up on mortgage or vehicle loan arrears. The repayment plan must prioritize certain obligations, including child support, alimony, and recent taxes, while unsecured debts may receive partial or no payment. Creditors have the opportunity to object at a confirmation hearing, and the court must approve the plan before payments begin. For those who cannot complete their Chapter 13 plan due to circumstances beyond their control, such as serious illness or job loss, a hardship discharge under Section 1328(b) of the Bankruptcy Code may be available, provided creditors have received at least as much as they would have in a Chapter 7 liquidation.
After a discharge order is entered, debtors are protected by a discharge injunction that permanently bars creditors from attempting to collect on eliminated obligations. A Chapter 7 bankruptcy may appear on a credit report for up to 10 years from the filing date, while a Chapter 13 remains for up to seven years. Straffi Jr. guides clients through strategies for rebuilding credit after discharge, including the responsible use of secured credit cards and credit-builder loan products.
Straffi & Straffi Attorneys at Law handles bankruptcy cases throughout Ocean County and New Jersey, preparing and filing petitions, attending meetings of creditors, communicating with trustees, and representing clients at all stages of the process. For individuals and businesses seeking debt relief through bankruptcy, consulting with an experienced bankruptcy attorney before filing can prevent errors that delay discharge or jeopardize the case.
About Straffi & Straffi Attorneys at Law:
Straffi & Straffi Attorneys at Law is a Toms River-based law firm focused on bankruptcy, divorce, and criminal defense throughout New Jersey. Led by attorney Daniel Straffi Jr., admitted in New Jersey and Pennsylvania and before the United States District Court for the District of New Jersey, the firm represents individuals and businesses throughout Ocean County and New Jersey. For consultations, call (732) 341-3800.
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Email: infodocuments@straffilaw.com
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Company Name: Straffi & Straffi Attorneys at Law
Contact Person: Daniel Straffi, Jr.
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Phone: (732) 341-3800
Address:670 Commons Way
City: Toms River
State: New Jersey 08755
Country: United States
Website: https://www.straffilaw.com/
