Can a Homeowner Use Bankruptcy to Eliminate Credit Card Debt in NJ?

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%

Contact

Contact an Edison Bankruptcy Attorney from Gillman, Bruton & Capone Today

Facing overwhelming debt is a daunting prospect. Calls from creditors and threats of repossession or foreclosure can take a toll on families. It may seem impossible to dig out from a hole and regain financial flexibility and freedom. Thankfully, an Edison bankruptcy lawyer wants to help you. Unlike many other law firms that suggest filing for bankruptcy as the sole chance to escape from under debt, we recognize that many alternatives may be available that bring a similar outcome. Even when bankruptcy is the best option, we provide you with all of the information you need to protect your interests. Give Gillman, Bruton & Capone a call today to schedule an appointment and a free case evaluation.

For a free consultation