Legal Question in Bankruptcy in California

keep on lending son money or Ch 7

My son is in his twenties. He owes $26,000 in credit card debt. His living expences are about $1650 and his income is about $1850. Credit card payments are about $600 paying the minimum. In September, he came to me for help. Called the companies and tried to reduce the %rate. Not much help. I spent about $4500 and now the balances have increased on 4 out of 6 cards. In other words, he owes more now than he did then. I told him I would lend him about $7,000 more to pay off one card and pay down two more. I am getting a home equity loan.

My son owns nothing but his clothes and a car that is his world. He does not really own the car - he makes care payments. But it is the only thing he has; he loves it and needs it to get to work. He couldn't handle losing his car. If he declares bankruptcy, could he keep the car?

Should I keep lending him money? We don't feel it is very honorable to not pay what you owe. But I worry about my ability to pay off my debts. I am 57 and single. My other son is younger and in college.

Please advise.


Asked on 4/04/02, 3:33 pm

2 Answers from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: keep on lending son money or Ch 7

the way credit card debt keeps piling up due to the high rates he will never be able to pay off that amount. as far as keeping the car in a chapter 7, it is very likely he could keep it but i need more info to be sure. If you want to give me a call I would be happy to discuss his situation at no charge.

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Answered on 4/04/02, 3:59 pm
Victor Hobbs Victor E. Hobbs

Re: keep on lending son money or Ch 7

Giving your son money is putting it down a rat hole. Have him file BK (Chapter 7), and show him a little tough love if he cries. He may love his car but get real. There are very inexpensive used cars he can drive. My wife and I both drive very used cars.

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Answered on 4/04/02, 4:43 pm


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