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Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Hello, my parents who are seniors in NJ want to know if they

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Hello, my parents who are seniors in NJ want to know if they can file bankruptcy. Combined they make $2080mo mostly from SS. Mom makes $800mo part time as a medical transcriptionist but she now has ms so really can't really do it anymore. Their bills are $2900mo. Dad is disabled and also fighting throat cancer. They have $14k in cc debt.
They called legal aid and was told if they filed they would be forced to sell the house since they have equity in it. Does that matter in NJ? They don't want to sell the house. It's worth around 250k and they owe 121k but they can't afford to refi since it will make the mortgage they can't afford even higher.
Also, any suggestions on how to get their loan modified?
Thank you so much.
In NJ their is no homestead exemption, meaning the court would force a sale to pay off their debts, however even if they elected to use the federal exemption, which is $20,200, they would have enough equity to force the court to sell the home, they should consider a reverse mortgage, to have some of their equity used to pay their bills.
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