Legal Question in Bankruptcy in Texas

Re: Should I file?

If your father kind stand the heat from the creditors it sounds like it would not be necessary that he file bankruptcy. A reason to file would be if he wanted to protect exempt assets, his house, from creditors claims when he dies. If not, then assuming all his assets are currently exempt from creditors there would be no legal reason to file. If he does file, because he is on fixed income and does not work, and has no non exempt assets to preserve, a Chap 7 would probably be appropriate, although his situation would have to be evaluated mor closely before a fianl recommendation could be given. Larry Maun 713.266.2560

Re: Should I file?

If only to give him peace of mind, yes. Chapter 7 would probably take care of most if not all of his debts.

Re: Should I file?

Short answer -- I would lean towards having him file. He has a large amount of unsecured debt. He could choose simply not to file but at his age why should he be forced to endure the hassle of creditors. It sounds like his creditors are beginning to take an aggressive stance. Eventually he may be sued and judgments would be taken against him. Although you indicate he has no assets, judgment creditors can garnish bank accounts under Texas law. If he were to pass away his estate would be pursued for these debts.

I recommend your father take full advantage of bankruptcy relief and file under Chapter 7. This would enable him to receive complete relief ("discharge" is the bankruptcy term) versus a Chapter 13 that is primarily used to pay off a portion of debts over several years. Read my firm's philosophy. At 65 years of age I personally feel he has earned the right to file. Emotionally it would be the best approach for him.

Your father's credit rating would very likely improve. As you have realized, his debt ratio to income is not very appealing. Often a bankruptcy IF COMBINED WITH A PERSONAL DECISION TO USE CREDIT PRUDENTLY will improve a person's credit.

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