Legal Question in Credit and Debt Law in Arkansas
Consequences of Being Sued for Non-payment
My parents are in their 70s, have few assets, and lots of credit card debt. They are being sued for non-payment. My father will not declare bankruptcy. Do to their age, they do not care about their credit record; it is already beyond repair. Since they can not lose their house or automobile, receive only social security, is there anything they should worry about in a judgement? What is likely to happen?
2 Answers from Attorneys
Re: Consequences of Being Sued for Non-payment
Yes, there is a problem: Whenever you get a judgement against you, it is AUTOMATICALLY a lien against your home and land! It may not directly effect them, but it will definitely effect any inheritance of the land as the liens will come along live and well!
Take a Bankruptcy and get rid of the debt!
Re: Consequences of Being Sued for Non-payment
There are consequences for nonpayment. The companies are obviously serious about collecting if they are suing your parents.
A judgment can attach to real property, bank accounts, tax refunds, etc. These liens can even last through the inheritance of their property. Any property in their names is potentially vulnerable.
I would suggest them taking some type of action. Bankruptcy would likely be their best financial option. Have they had much contact with the credit card companies? Are they able to pay anything? A payment plan might be better than having a judgment against them, depending on the rest of the details of their situation.
I would suggest them doing something rather than nothing. A judgment may be more of a hassle than you realize.
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