Legal Question in Bankruptcy in New Jersey

looking for options

Recently ( the last 3 months ) we have been unable to make

all our monthly payments. The mortgage, gas and electric,

phone, and all routine monthly bills are met but our credit

card payments were becoming hard to meet or in most cases

pay at all. We finally added up our debt in this area and

discovered it to be $72,000. We thought it was in the neighborhood of 30,000. We presently have a second mortgage

on the house so refinancing may not be possible. Our first

mortgage will be paid off in @ 4 years ( $25,000 left) and the second in 7 ( 30,000 left ).I'm presently making $52,000 year and my wife $20,000. What can we do that allows us to keep the house?


Asked on 7/09/03, 8:59 am

1 Answer from Attorneys
Stuart G. Brecher Law Offices of Stuart G. Brecher, LLC

Re: looking for options

You might want to consider and explore seeking relief under the bankruptcy code. Depending on various factors, including the value of your home, the balances on your mortgages, and the amount of the homestead exemption that might be claimed against the unencumbered equity in the home, you might be able to file for relief under chapter 7 and still keep your home. A discharge under chapter 7 could essentially wipe out all of your dischargeable unsecured credit card debt. Otherwise, you might consider a chapter 13 bankruptcy which can enable you to keep your home and pay some amount of your debt with your monthly disposable income through a court-approved plan over a period of 36 to 60 months, upon the successful conclusion of which the remainder of your debt may be discharged. Outside of bankruptcy, an out of court workout with your creditors is also an option, i.e., negotiating discounts of some or all of your debt and paying the discounted amounts either in lump sum or over time in periodic installments.

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Answered on 7/09/03, 11:02 am


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