Legal Question in Bankruptcy in California
Bankruptcy or do nothing at all?
My parents are in their mid eighties and have only their
SSI to live on of $1310.00 a month. They have,because of their age and misunderstanding of credit cards and debt, gotten themselves in over $26K in debt. The debt is roughly 50% credit cards and 50% unsecured loans. They have only a 25 yr old car and personal assets and they rent. Their living cost run approx $1150.00 a month with rent,food etc!
Would it be better for them to file bankruptcy or do nothing at all? as they appear to be possibly ''Judgement Proof''
Thank You
2 Answers from Attorneys
Re: Bankruptcy or do nothing at all?
They should do something, or the creditor calls will not stop. If they have few assets, Chapter 7 liquidation with the state exemptions should save the few things they have. If they're uncomfortable with this, they may wish to try negotiating the debt instead, perhaps through the Consumer Credit Counseling Service.
Re: Bankruptcy or do nothing at all?
Your parents are judgment proof. However, if they are being bothered by calls from creditors, they should consider filing BK. They will lose nothing that they own.
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