Legal Question in Bankruptcy in Florida

Is Bankruptcy the best option?

My parents are retired and are living on Social Security and a little money from an annuity. Their net monthly income is about $1677.00. They have 2 mortgages on their house totalling about $134,400. Their house is valued at around $135,000. They also have 16 credit cards with debt totalling over $30,000. Obviously, they are unable to meet their financial obligations. They don't even have enough to pay both mortgage payments and their normal living expenses. Is bankruptcy the best option for them and if so, Chapter 7 or 13? Thank you.


Asked on 8/22/00, 7:19 pm

2 Answers from Attorneys
Joel Cohen Joel M. Cohen,P.A.

Re: Is Bankruptcy the best option?

Your parents do not have to file bankruptcy as their creditors cant bother their annuity or the social security. However, the creditors can bother them with collection effors, day and night. Bankruptcy will extinguish the credit

card debts.Also,if they intend to keep the residence, they must pay BOTH mortgages. Isuggest they consider surrendering the house in theBankruptcy as they have already extractedtheequity when they took the2d mortgage.

I can help you prepare the necessary documents and give you instructions at one-half normal rates. If you are interested, tell your parents not to make asny more payments on the credit cards or home mortgage.

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Answered on 10/01/00, 10:44 am
Melody Stickel-Martinez Melody Stickel-Martinez, Esq.

Re: Is Bankruptcy the best option?

Review the bankruptcy section of my web page www.attorney-4u.com. You should find some helpful information here for your parents. If your parents are unable to pay their creditors and are drowning in debt then Chapter 7 may be a good option for them. Feel free to call for more information. (954)966-4140 Sincerely, Melody Stickel-Martinez, Esq.

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Answered on 9/29/00, 12:47 pm


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