Middletown, NJ asked in Bankruptcy for New Jersey

Q: My sister just lost her husband to COVID. Her husband left her with $100,000 in credit card debt.

They own a home with a mortgage of about $300,000. He owns another home with a mortgage of about 150,000. She’s not working, she’s a retired nurse. Can she claim bankruptcy?

Related Topics:
4 Lawyer Answers
Derek John Soltis
Derek John Soltis
Answered
  • Bankruptcy Lawyer
  • Jersey City, NJ

A: She would have to provide her documents to a bankruptcy attorney to get the best answer. She most likely could file a chapter 13 to protect the assets which is a repayment plan over 3 to 5 years based on her income. She may even be able to file a chapter 7 to wipe out the excessive debt and still keep her property. Her first step should be to talk to an attorney.

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Probably, but she needs to consult a bankruptcy practitioner and let him analyze her financial situation. So many variables that it is impossible to properly answer this question without the documents

Stuart Nachbar
Stuart Nachbar
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Livingston, NJ
  • Licensed in New Jersey

A: As a bankruptcy attorney, I would suggest a consult, provide proof of income, if possible appraisals of the property and rent roll for same. Also, need to determine if she is liable for any of the cards, as in were any of the cards joint cards, or were they only in his name. We offer free consults

W. J. Winterstein Jr.
W. J. Winterstein Jr.
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

A: Section 109 of the Bankruptcy Code deals with who may be eligible to file bankruptcy under each Chapter, e.g., Ch. 7 or Ch.. 13. There is an income ceiling (from all sources) for filing a Ch. 7 (e.g., the median income for NJ for a household of 1). To be eligible for a Ch. 13, a "periodic income" is required, because that Chapter involves a payment plan over a period of years. There are also total debt limitations. The key question for your sister will be the exempt property she may claim. I agree with the first Answer to the extent that it recommends speaking to a bankruptcy attorney. Many bankruptcy lawyers do not charge for an initial consultation. To get the maximum benefit from an initial consultation, your sister should prepare a list of all her assets, with estimated values, all her debts, with the creditors' names and addresses, and the amounts claimed by each, and whether any are in default (missed payments). It would be even better if those lists were provided to the attorney before the consultation.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.