QUESTION
For an 87 yr old, is it better to file bankruptcy or stop paying credit cards?
Asked on Aug 11th, 2014 on Bankruptcy - Georgia
More details to this question:
2 strokes and needs assisted living. Paying 1200 a month in credit cards with 1800 in monthly income. Has reverse mortgage with maybe 40,000 in equity when house sells. Should we just stop paying the minimum credit card monthly, or file bankruptcy? Which might take longer for any action as well as allow her to have money for assisted living? Thanks!
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
Reviews not shown
3 Awards
There are many factors to consider and you should have a consultation with a bankruptcy attorney in your area.
A lot depends on what assets you have and what exemptions are available under applicable state or federal law to protect those assets in a bankruptcy case (or outside of a bankruptcy case, for that matter).
If you don't have any non-exempt assets, then you may be "judgment-proof" and it may be safe to just stop paying the credit cards as you indicated. However, there may still be reasons to file a bankruptcy case.
My article on when you need to file bankruptcy may be helpful to you.
Answered on Aug 11th, 2014 at 10:03 AM