Legal Question in Credit and Debt Law in California

Is Bankruptcy the answer?

Hello and Thank You,

I have elderly (both 89 years) relatives that are in a financial mess. I'm trying to advise them: They owe approximately $20,000. (we think), credit card debt and damages to vehicles because of an accident. They have only social security, disability and federal pension money coming in and own their l978 mobile home, on property, free and clear but cannot get a loan on it because of its age and the fact it is not on a foundation. They own an automobile valued at about $3,000.. Should they file for bankruptcy? According to what I've read they would be considered judgement proof because of the above circumstances, is that true? Should they do nothing, the collection calls are stressing them real bad, can that be stopped if they don't file bankruptcy? Thank You, Priscilla


Asked on 11/14/04, 11:05 pm

1 Answer from Attorneys
H.M. Torrey The Law Offices of H.M. Torrey

Re: Is Bankruptcy the answer?

from the facts given so far, your relatives may want to strongly consider debt negotiation as a far more attractive alternative to bankruptcy. however, more facts would be needed to determine if this is the best option for them. if your relatives do not have significant equity in their home and are not currently employed, they may definitely be "bullet proof" in terms of a creditor's legal remedies against them, and in this scenario, debt negotiation would be a very viable, less damaging alternative to bankruptcy. if you would like to provide us with more facts, we would be able to give a stronger recommendation one way or the other.

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Answered on 11/17/04, 6:31 am


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