Legal Question in Bankruptcy in California

Re: for seniors is banruptcy necessary?

I sure hate to answer this question without digging through more specifics, but at first blush, I'd have to say that bankruptcy may be their only way out.

Whatever you do, DO NOT utilize one of these debt-reduction services you hear about on the radio. They are a scam, and and will destroy their credit, and not accomplish what they need which is total reduction or elimination of this debt.

They need to consult with a bankruptcy attorney in your area sooner than later. It may require both filing depending upon when the obligations were incurred, and a number of other factors. If they live in the North San Diego County/South Orange County area, please get a hold of me and I'll be glad to go through this with you in more detail.

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Re: for seniors is banruptcy necessary?

Whether it is "necessary" is a subjective analysis. A discharge in bankruptcy would eliminate any legal liability they have to repay the debt. You state that the debt is keeping them from qualifying for senior housing. However, there is no way to predicate if a bankruptcy discharge will result in an approval.

It would be unlikely that the creditors could collect much if they were to sue, but a bankruptcy could prevent future harassment and give peace of mind. So is it necessary to file bankruptcy? Probably not, but it would most likely be very helpful for them.