Filing Bankruptcy ? in NJ

[GJM]

This is the story -

DH has 2 credit cards with large balances on them. I am not on these cards. He lost his job about a month ago. His unemployment covers our mortgage and my pay is just covering the other bills we have, gas & electric, food, and we do have a car payment.

Can he file for bankruptcy and it not effect me. Would they make us take the equity out of our house to pay the credit card bills.

We don't know what to do - he thinks he can't do this without it effecting me or the equity in the house.

We are not behind in the mortgage, it is just these 2 cards.

We live in NJ -

I would appreciate any info.

Thank you -

[SinkingFast]

http://www.usdoj.gov/ust/

That's the link to the Means Test, Median Income, and Schedules Allowables at the DOJ. You'll also find approved BK Cert Counseling agencies there as well.

http://www.bankruptcyinformation.com/NJ_exemp.htm

There's a link to a website about NJ BK Exemptions. I looked at several sites and they all said the same thing.

NJ has no Homestead Exemption, so you can choose to use Federal Exemptions. If you use Federal, your Hubby can exempt up to $125K in equity in your home. That would be his half of the equity if you own the home jointly. Meaning you could have up to $250K in equity in your home, total, and the house would be protected.

Also, with your Hubby being on unemployment only, he probably would not be a candidate for Ch 13 right now. Not until he finds a new job. When a Trustee confirms a Ch 13 payment plan, the Trustee has to be fairly certain that the Filer has the ability to pay the plan payments. Until your Hubby has a "permanent" employment situation, the Trustee most likely would not confirm a Ch 13 payment plan.

[lrprn]

My responses are in red below in your original post...

This is the story -

DH has 2 credit cards with large balances on them. I am not on these cards. He lost his job about a month ago. His unemployment covers our mortgage and my pay is just covering the other bills we have, gas & electric, food, and we do have a car payment.

Can he file for bankruptcy and it not effect me. Yes. Would they make us take the equity out of our house to pay the credit card bills. How much equity do you have? The bankruptcy rules in NJ show no home exemption - see http://www.bankruptcyinformation.com/NJ_exemp.htm .

We don't know what to do - he thinks he can't do this without it effecting me or the equity in the house. We need more information to be able to help with this. Is the house in both of your names or just his? How much does your husband owe on the two cards? Is there a possibility of your husband getting a new job soon?

We are not behind in the mortgage, it is just these 2 cards.

We live in NJ -

I would appreciate any info.

Thank you -

If you haven't spoken with a bk lawyer yet, most bk lawyers give a half-hour to hour free consultation. Set up some appointments with 3-4 now (check the threads here for how to find a good bk lawyer. Take your paystubs for the last 6 months, average monthly expenses (everything - food, clothes, utilities...everything), and a list of all currently owed secured and non-secured debts with you. He/she can tell you if bk is the right option and if your money as a couple is sufficiently split from each other for your husband to file without you.

Hang in there, GJM - keep posting - we are here to support you because we've all been where you are right now to one degree or another. We want to help.

[debtisbad]

GJ,

Do not feel alone. This same scenario is playing out all over the country. If your husband files, it will not affect you provided you are not an authorized user on the cards. You should set up several different consults with attorneys to see what your options are. Then, decide what is best for you and your family. Also if your husband does not want to file, he could see if the cc companies would work with him. They were willing to work with us, but we were just out of a job way too long, so even though we tried to work with them, in the end, we could not. Good luck to you. Ask any questions you want.

[GJM]

Thanks for the replies,

The house is in both of our names, could he sign the house over to me if need be?

The total is about $20,000

Not sure on the job, he has been looking

[SinkingFast]

Thanks for the replies,

The house is in both of our names, could he sign the house over to me if need be?

The total is about $20,000

Not sure on the job, he has been looking

Don't do that! Change the Deed/Title on the house. It can have the appearance of fraud to the Court. Like your Hubby is trying to hide an asset from the Trustee. The look back period on property transfers is 1 year. So leave the Deed/Title to the house alone if Hubby is even remotely considering BK as an option.

The Court is only gonna look at his half of the equity in jointly held property. The fact that he files and you don't, while the property is jointly held, makes the house less attractive to the Trustee.

You really need to schedule some Consult appts with attnys and have them explain all of this to you. Consults are generally free and you'll learn a lot.