Advice Needed - Bankruptcy in New Jersey?

Edwards Finance > Loans

Q. My mother-in-law died about 2 weeks ago. Without her pension and SS income, my 76 year old father-in-law cannot pay his mortgage and credit card debt. He owes about 90K on a 150K house and has about 40K in credit card debt. At his current income level he can just barely pay the mortgage. Right now he is under the impression that if he declares bankruptcy he will lose his house. Is this true? Another possiblity is that his 4 kids split the CC debt and pay it off over time on his behalf. The problem with that is it would be a struggle for all of us to assume this debt. Can he declare bankruptcy and keep the house?

A. I am not going to sit in judgment on how elderly people allowed themselves to get so deeply in debt. But I see no equitable reason why you should assume it. If it should happen your father-in-law loses his house, that does not mean he is without options. He can sign up for a senior highrise where the rent is according to how much an individual can afford to pay. Not everyone needs to have a house in order to survive--especially if they can't afford one. Even though I am not an attorney, I think you will find my advice sensible. Those of you who are contemplating assuming your father-in-law's debt might be better off pooling together to pay for a bankruptcy attorney for him than to come her looking for answers. *Can he declare bankruptcy and keep the house? Right now all I can tell you is this: In New Jersey there is no real estate exemption. However, a NJ resident who petitions for bankruptcy has the option of taking the Federal exemptions--which includes a homestead exemption not to exceed $15,000.

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