Straffi & Straffi Attorneys at Law helps individuals and families throughout Freehold and across Monmouth County relieve debt and navigate the bankruptcy filing process.
If you are falling behind on the mortgage for your western Monmouth County home, your business along Route 9 can no longer keep up with its bills, or a lender is coming after you on a loan you personally guaranteed, talk to our bankruptcy attorneys as soon as possible. We’ll review your income and home equity, along with any business debt, before recommending a path to debt relief and financial security.
Chapter 7 wipes out most unsecured debt, from credit card balances to medical bills, usually within four to six months. There is no repayment plan. A court-appointed trustee reviews your assets, and anything not protected by an exemption can be sold to pay creditors.
To qualify, your household income must pass the means test. For New Jersey cases filed on or after April 1, 2026, the median income thresholds are:
Household size | New Jersey median income |
|---|---|
1 person
| $87,173
|
2 person
| $106,876
|
3 person
| $137,136
|
4 person
| $168,127 |
Each additional person
| Add $11,100
|
Income above the median does not automatically rule you out. The second part of the test subtracts allowed expenses, and many Monmouth County households with high housing and commuting costs still qualify. Our team can explain your New Jersey Chapter 7 bankruptcy filing options and run both parts of the test before you file.
Chapter 13 is a court-supervised repayment plan that lasts three to five years. You keep your property, including home equity that Chapter 7 would leave exposed. Each month you make one payment to a Chapter 13 trustee, who pays your creditors.
For Monmouth County homeowners who have fallen behind on a mortgage, Chapter 13 is often the strongest option. Missed payments are spread across the plan, and a pending sheriff sale stops. You keep the house as long as you stay current going forward.
Chapter 13 also helps when:
To file, you need regular income and debts under the Chapter 13 limit. The Bankruptcy Threshold Adjustment Act replaces the old separate limits with a single $2.75 million cap. Weighing Chapter 7 against Chapter 13 in New Jersey comes down to your income and how much equity you need to protect.
Chapter 11 lets a struggling business keep operating while it renegotiates its debts under court protection. Payments are restructured into a plan the business can sustain, so a company that’s still viable doesn’t have to close.
Subchapter V is a faster, less expensive version of Chapter 11 built for small businesses. There is no creditors’ committee, the owner keeps their equity without paying unsecured creditors in full, and only the debtor can propose a plan. Under the Bankruptcy Threshold Adjustment Act, businesses and business owners with up to $7.5 million in qualifying debt can elect Subchapter V. Most contractors, restaurants, medical and dental practices, and family companies in Monmouth County qualify.
Individuals whose debts exceed the Chapter 13 limit can still reorganize under Chapter 11. This often applies to business owners who personally guaranteed loans, landlords with several mortgaged properties, and professionals with large tax or judgment debts. Individual Chapter 11 can protect a home and rental properties while debts are restructured over time.
1
Homeowners with equity
2
Small business owners
3
Personal guarantors
4
Landlords and real estate investors
5
Families facing job loss or medical debt
New Jersey doesn’t have its own homestead exemption, so most homeowners who file rely on the federal one, which protects $31,575 of equity per filer. In Monmouth County, where many homes carry six-figure equity, that gap can put a house at risk in Chapter 7. Chapter 13 avoids the problem because you keep your property while repaying creditors over time, though the extra equity may raise your monthly plan payment. Filers whose debts are too large for Chapter 13 can protect a home through Chapter 11 instead. Choosing between the federal and New Jersey bankruptcy exemptions is one of the first decisions in any Monmouth County case.
Bankruptcy cases from Monmouth County are assigned to the Trenton vicinage of the U.S. Bankruptcy Court for the District of New Jersey. Your Chapter 7 or Chapter 13 trustee will be assigned through that court, and we handle the filings and any court appearances for you. Most filers only need to attend one meeting, the 341 meeting of creditors, where the trustee asks questions under oath. It’s usually held remotely, and we attend with you.
Filing for bankruptcy triggers an automatic stay that stops a pending Monmouth County sheriff sale. Chapter 7 only pauses a foreclosure. Chapter 13 lets you catch up on the arrears over time and keep the home, and Chapter 11 does the same for filers with larger debts or several properties. When a sale date is close, an emergency bankruptcy filing can stop it in time.
Many Monmouth County businesses fund payroll and materials through merchant cash advances that drain daily revenue. Chapter 11 stops those daily withdrawals while we challenge or restructure the advances. If bankruptcy isn’t currently necessary, debt negotiation may resolve the debt out of court.
Bankruptcy-focused experience
Daniel Straffi Jr. has handled Chapter 7, Chapter 13, and Chapter 11 cases across New Jersey since 2004.
A family-owned firm for personal bankruptcy guidance
You work directly with your attorney, not a rotating staff.
Convenient local offices
Meet us in Freehold, or at our main office in Toms River.
Providing options beyond bankruptcy
We handle debt negotiation with creditors in addition to our bankruptcy services, so we can identify and recommend the least drastic option that works.
Straffi & Straffi’s Freehold office is at 4400 Route 9 South, Suite 1000, in the Freehold Executive Center, a Class A office building in Freehold Township. The building sits on Route 9 South just past Craig Road, immediately north of the Freehold Raceway Mall.
The office is minutes from the Monmouth County Courthouse in downtown Freehold and close to CentraState Medical Center. Clients coming from elsewhere in Monmouth County can reach it from Route 33 and Route 18, and I-195 is nearby for those traveling from the south. Parking is on-site, and an NJ Transit bus stop on Route 9 is about a half-mile away.
Often, yes. It depends on your equity and which chapter you file. Because New Jersey has no homestead exemption, homeowners with significant equity usually need Chapter 11, Chapter 13, or careful planning rather than Chapter 7.
Most Chapter 7 cases reach discharge about four to six months after filing.
Chapter 7 is faster and wipes out most unsecured debt, but it does not protect much home equity. Chapter 13 takes three to five years and lets you keep your home while catching up on what you owe. The right choice depends on your income and equity.
No. Subchapter V was designed for small businesses, and individuals with debts above the Chapter 13 limit can also file Chapter 11.
Yes. The automatic stay halts most collection lawsuits and wage garnishments as soon as the case is filed. Bank levies stop too.
Costs include the court’s filing fee plus attorney fees, which vary by chapter. Chapter 7 filing fees can often be paid in installments. In Chapter 13, much of the attorney fee can be paid through the repayment plan instead of up front.
Yes. New Jersey is not a community property state, so you can file alone. Your spouse is only affected by debts you owe together, such as a joint credit card or a loan they co-signed. Chapter 13 can also protect a co-signer from collection during the plan.
A sole proprietorship’s assets become part of your bankruptcy, and the business usually closes. An LLC or corporation stays separate, but your ownership interest is listed as an asset. Personal guarantees you signed for the business can be discharged in your personal case.
Most Chapter 7 and Chapter 13 filers never see a courtroom. The one required appearance, the meeting of creditors, is typically held remotely. Chapter 11 involves court hearings, which we attend with you or on your behalf.
It depends on the loan type. Many FHA lenders consider applicants about two years after a Chapter 7 discharge. Some will consider Chapter 13 filers after a year of on-time plan payments, with the trustee’s approval.
Debt problems grow faster than most people expect, and the best options can disappear first. Call our Freehold office or request a free consultation to learn which chapter of bankruptcy fits your situation.
