QUESTION
Can an elderly person get out of paying a loan?
Asked on Oct 26th, 2011 on Bankruptcy - Georgia
More details to this question:
My 87 year old father-in-law co-signed a note for a grand-son. Now he is stuck paying this $20,000 note. On a fixed income it is starting to affect his situation. Can father-in-law get out of this debt? Too proud to walk away or not pay.
4 ANSWERS
Family Law Attorney serving McDonough, GA
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South Atlanta Family Law
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He can negotiate a settlement or file for bankruptcy if he cannot afford to pay the full amount of the debt. If he is successfully discharged in bankruptcy, his grandson will remain liable for the full amount owed.
Answered on Nov 07th, 2011 at 9:10 AM
He cannot get out of the debt based solely on age, because if he does not pay the debt before his death, the creditor can then go after assets of his estate to pay off the debt. If he is on a fixed income, and it is near impossible for him to pay off his debt, you may want to consider filing for bankruptcy. However, if he does have a large number of assets and property, the Bankruptcy Trustee can seize these items to pay off the debt that is owed. Your best bet is to consult a bankruptcy or debt attorney how best to proceed, but there mere fact that he is elderly does not preclude him from having to pay off debts.
Answered on Nov 02nd, 2011 at 11:16 PM
Seth D. Schraier, Esq. Law Office of Seth Schraier 3647 Broadway Suite 4G New York, New York 10031 Cell: (914) 907-8632 www.SchraierLaw.com
If his fixed income is social security, it is exempt from creditors (except IRS!). If he has other income/assets he should probably look at bankruptcy. He gets no special rights because of his age.
Answered on Oct 27th, 2011 at 8:55 PM
Bankruptcy Attorney serving Atlanta, GA
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Jakob-Barnes Law Firm, LLC
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If he has very few assets, there is a good chance he can file a Chapter 7 bankruptcy and get relief from the debt.
Answered on Oct 27th, 2011 at 4:34 PM