I have just taken over the finances for my 83 yr old mother. Her finances are a mess. She can't remember 5 minutes ago. I ran her credit report and she owes 60K in credit card debt.She was foreclosed on by GMAC and may owe the difference between her mortgage and the sale price in CO. Her income is from social security and $650 retirement check. Can they garnish her income before she gets the checks? Is it worth spending the money to file for BK? She qualifies for Medicaid, which we are in the application process. Thank you for you help.
I probably wouldn't bother. She sounds like she is judgment proof, a phrase meaning any judgments secured against her would likely be valueless to her creditor. I assume because she is going to receive Medicaid she has almost no assets in her name, anyway. It would not hurt to speak to a local bankruptcy lawyer via a free consultation, but I probably wouldn't bother to file if I were her.
The social security benefits are not subject to garnishment, with the facts in your inquiry, the pension likely needs more information as to its source.
As my colleague says, she appears judgment proof, because there appear no assets to protect.
Having little memory is awfully difficult, and makes bankruptcy very uncertain, because the debtor has to make many statements that require legal capacity, and answer questions at a creditor meeting.
Check with an experienced bankruptcy attorney, many offer an initial consultation at no cost.
General legal advice is offered for educational purposes only. A consultation with a qualified attorney is required to determine specific legal advice as to your situation and applicable law. We are a debt relief agency and we help people file for relief under the bankruptcy laws.
It sounds like there is little for a creditor to collect against. If the social security check is deposited in a separate bank account, it is not subject to garnishment. The retirment funds might be garnished after the funds are placed in the bank, although a garnishment served on the payer of the funds probably wouldn't be effective. So long as there is not a significant balance in her bank account, she probably has little to worry about from her creditors and may not need bankruptcy protection.
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