It depends on why you are filing the bankruptcy. If it is just to pay back your debt over time, then there is no real deadline other than to avoid an impending wage execution, bank levy or entry of judgment in a law suit. The issue with judgments is that they can create a lien against any real estate you own (which for most people is just their home) and increase the cost of your bankruptcy because additional steps need to be taken to remove said lien after you file.

But if you are filing to save your home from foreclosure, it must be done prior to the sheriff sale. That is the point of no return or "drop dead date": once that happens, the only way to keep the home is to pay off the mortgage balance within the 10-day redemption period under New Jersey law, following the sale. Naturally, unless you are trying to conclude a refinancing, that solution is not a very practical one.

The good news is that as of the writing of this post (July 5, 2011), it is estimated that it is taking banks 2 to 3 years to take a foreclosure from start to sheriff sale. This offers you quite a bit of time to save the home through a bankruptcy. However, I would recommend that you file as soon as possible, since every month you wait makes the arrearage that much bigger.

If you are behind on your mortgage and want to try and save your home, you should contact me to discuss your options. I offer a free half-hour consultation, so don't delay; waiting too long can result in the loss of your home!

The Law Office of Steven J. Richardson serves New Jersey, including:  Gloucester, Camden, Burlington, Salem, Cumberland and Atlantic Counties and surrounding New Jersey communities, including Woodbury, Colonial Manor, North Woodbury, Woodbury Heights, Deptford, Thorofare, Gloucester City, Washington Township, Blackwood, Brooklawn, Westville and Pitman.

Richardson Law Offices
40 Newton Avenue
Woodbury, NJ 08096
Phone: (856) 686-9910
Fax: (856) 686-9911