The Decline of NJ Home Prices Now Allows Many Homeowners to Use Bankruptcy to Wipe Out Credit Card Debt.
The value of home prices in Middlesex County, New Jersey, almost doubled in less than ten years between 1997 and 2007. As a result many homeowners who experienced serious debt problems were unable to use the ‘Clean Slate – Fresh Start’ provision of a Chapter 7 Consumer Bankruptcy because the bubble in home prices created equity in their homes which exceeded the amount they could exempt from their creditor.
The home price bubble burst in 2007, and as a result home prices in Middlesex County declined every year in the years between 2008 and 2012. For example, between 2008 and 2012, home prices declined in Woodbridge Township by almost 25 percent. As reflected below the decline of home prices in some other Middlesex County municipalities was less severe, but nonetheless substantial. The ‘good news’ about the decline of home prices is that many homeowners experiencing serious problems can now eliminate credit card debt by filing a Chapter 7 Bankruptcy.
County: MIDDLESEX
Municipality: WOODBRIDGE TWP
Average residential sales price
2012: $244,071
2011: $265,989
2010: $274,223
2009: $298,283
2008: $323,183
Change 2011-2012: -8.2%
Change 2008-2012: -24.5%
County: MIDDLESEX
Municipality: EDISON TWP
Average residential sales price
2012: $349,710
2011: $366,236
2010: $360,110
2009: $364,204
2008: $375,181
Change 2011-2012: -4.5%
Change 2008-2012: -6.8%
County: MIDDLESEX
Municipality: OLD BRIDGE TWP
Average residential sales price:
2012: $298,463
2011: $314,647
2010: $327,715
2009: $340,042
2008: $357,960
Change 2011-2012: -5.1%
Change 2008-2012: -16.6%
County: MIDDLESEX
Municipality: EAST BRUNSWICK TWP
Average residential sales price:
2012: $326,036
2011: $335,645
2010: $342,705
2009: $366,117
2008: $382,521
Change 2011-2012: -2.9%
Change 2008-2012: -14.8%
