Legal Question in Credit and Debt Law in Maine

My parents are both 82, have no assets, are $30,000 in credit card debt and are upside down in their auto loan. Dad has Alzheimers. Between them they have approximately $40,000 yearly income from SS and pension. With the need for increasing services for Dad, they are considering stopping payment on the credit card debt. Should they instead file for bankruptcy? What can they expect to have happen if they stop paying?

Thanks.


Asked on 4/19/10, 4:01 pm

1 Answer from Attorneys
scott logan Law Office of J. Scott Logan, LLC

If they stop paying, the credit card company will likely sue them. However, if they have no nonexempt assets, they can explain that to the judge and aside from occasional disclosure hearings, probably won't have to pay anything. All they'll have is the embarassment and stress of having to go to court several times.

Now, if the car was purchased more than 910 days ago, they might want to consider a Chapter 13 reorganization. That way, they could pay just its value over 3-5 years, instead of the debt.

Feel free to call me if you want to talk further or set up a free consultation. 207-699-1314.

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Answered on 4/26/10, 7:03 am


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