Anyone familiar with N.J. BK laws?

[LadyInTheRed]

If you live in the house you own with your sister, you can use the $21,625 federal homestead exemption to protect part of your equity. If you don't live in the home and don't need the homestead exemption to protect the home you live in, you can use $10,825 of the unused Federal exemption as a wildcard on any property. There is an additonal $1150 wildcard you can use on any property. Federal exemptions can be doubled by a married couple filing jointly, but I don't know whether your husband can use his exemptions on the home if his name is not on the deed. If he can and you live in the home, you will be able to exempt most of your equity.

Start making appointments for free consultations with BK attorneys. You need more posts before you can PM keepsmiling for a referral to an attorney and forum rules prevent him from posting the name. So, do some more reading here and post some more questions, or get involved in discussions in the "general talk" forum and you will quickly get enough posts to send and receive PMs.

[fpsk13]

WOW, everyone has been so helpful - this is making my head spin!!!! LOL...
I wil take more time to read all of the replies carefully this evening...thanks again to all!!!

[catleg]

The biggest problem you'll face is protecting that equity in the home you own with your sister.
She would need to buy you out and then you have to protect that money with exemptions, and/or wait out 2 years time.
If you stop paying your cards, NJ is very lawsuit friendly for creditors and if they get a whiff that you have any assets you will be sued in Special Civil court pretty fast; automatic judgment by default occurs 35 days after filing suit and it is a cheap and automated process.
One question: in whose name are the CC debts: yours, husbands, or joint?
Good luck, with proper planning bankruptcy is definitely the way to do.
Debt settlement is not realistic in the low 20%'s in most cases.

[LadyInTheRed]

The biggest problem you'll face is protecting that equity in the home you own with your sister.
She would need to buy you out and then you have to protect that money with exemptions, and/or wait out 2 years time.

She would not have to wait 2 years as long as she sells her interest to her sister at fair market value. But, she would have to exempt the cash she receives or spend it before she files.

[catleg]

She would not have to wait 2 years as long as she sells her interest to her sister at fair market value. But, she would have to exempt the cash she receives or spend it before she files.

Yes that is true. I was thinking in terms of below FMV. Way below FMV.