Legal Question in Bankruptcy in California

Re: Judgement Proof?

The only advantage of doing a Bankruptcy would be to bring a final end to their debts. Otherwise there will be the possibility that a suit might be filed, and after a judgment is obtained, the creditor could make your parents go testify in court as to their assets every six months.

This is more of a personal decision as far as what they want to do rather than a legal decision. I've had some elderly clients that I advised to do nothing because they were judgment proof, but they chose to file a bankruptcy anyway, just to have a sense of finality to things.

Re: Judgement Proof?

I get the impression that you may believe that being "judgment proof" is some kind of legal determination or protection--all it means is that at the time a particular creditor sought to cause your parents to be responsible for a debt, or sought to collect on a judgment already rendered, that it appeared that your parents did not have any assets from which to pay the debt. The debt does not vanish, however; a judgment creditor can record an abstract, etc. and renew it every 10 years (during which time interest will accrue), and hope that your parents win the lottery, come into an inheritance, or leave an estate from which to recover the monies owing. To determine if it is worthwhile to file a chapter 7 requires an examination of all the debts and their type. You really need to have them see a bankruptcy attorney.