QUESTION
My mother defaulted on her credit cards seven years ago, what is the effect on my bankruptcy?
Asked on Oct 26th, 2012 on Bankruptcy - Michigan
More details to this question:
She was 80 at the time. There was never a judgement against her, creditors did call for a while but soon stopped. During this time, I moved in with her and became her full time caregiver. I have not worked for six years and may not work again, since I'm still her caregiver. I'm 59 and I am now looking at bankruptcy on credit card debt. I would have to show her income, since her income pays all the household bills. Will the collectors become an issue with her again? My only outside income is an IRA, which I'm slowly draining. I know this will not look good before a judge. Would the issue even come up? We share ownership of a mobile home, her 70% and me 30%.
13 ANSWERS
Administrative Law Attorney serving Ann Arbor, MI
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David J. Hutchinson
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You should consult an experienced Chapter 7 attorney, who can give you the best advice and strategy. You should be able to file without negatively affecting your mother.
Answered on Oct 31st, 2012 at 5:00 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Her financial situation will not have a bearing on you as long as you disclose everything properly.
Answered on Oct 31st, 2012 at 4:58 AM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Nothing you do in your bankruptcy should cause her creditors to once again become an issue.
Answered on Oct 31st, 2012 at 12:59 AM
Bankruptcy Law Business Attorney serving Asheville, NC
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Pitts, Hay & Hugenschmidt, PA
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I don't see that this will affect your mother in any way. Her income should not be an issue in your case, and her co-ownership of the house is also not a problem.
Answered on Oct 30th, 2012 at 9:44 AM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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Your bankruptcy should have no effect and the question will never come up unless you and your mother were jointly liable or co-obligors on the credit cards you are talking about. If that is the case, you will be discharged and you may light a flame to now go after your mother but not too likely.
Answered on Oct 29th, 2012 at 7:20 PM
Samuel Lee Tucker
Most probably you have nothing to worry about. Your mother's credit would not be attributed to you. Property exempt from judgment varies from state to state, you should consult bankruptcy attorney to see what your exposure is.
Answered on Oct 29th, 2012 at 4:49 PM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Her credit card debt will not affect your bankruptcy; your partial ownership of a mobile home will have to be disclosed on Schedule B, and you will have to list her as a co-debtor on Schedule H if there is a mortgage or loan on the mobile home. Also, you must include all creditors in a bankruptcy; some may be dis-chargeable and some may not be; just depends on the type of debt it is.
Answered on Oct 29th, 2012 at 4:36 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Your mother's debts have no affect on your bankruptcy. If they are joint debts, you would have to list her as a co-debtor.
Answered on Oct 29th, 2012 at 4:33 PM
Daniel James Wilson
I am sorry to read about your situation. BK is complicated and its not possible to address all your issues in an e-mail. I urge you to consult an attorney. That said, I don't think your mother's debt is an issue. You are correct in saying her income must be included in determining your disposable income, but I assume her income is from social security or pension. You will probably qualify for a Ch 7. In my jurisdiction the Ch 7 debtor does not appear before a judge. Your case will probably be fairly simple.
Answered on Oct 29th, 2012 at 4:33 PM
You need legal representation because you are misinterpreting the bankruptcy laws against yourself. You are not prohibited from filing bankruptcy because you live with your mother and she pays for most of the living expense. You simply would need to disclose your income and the expenses you actually pay. The expenses your mother pays are her business, and not the bankruptcy court. Far from looking bad to the Court, your case is pretty typical of what the circumstances are when someone needs to file bankruptcy. My only concern would be whether you have enough debt to make filing bankruptcy worthwhile.
Answered on Oct 29th, 2012 at 4:33 PM
Your mother's bankruptcy several years ago should have no effect on your bankruptcy. If you have no income at all and little or no assets, you might not want to file bankruptcy. Talk to an attorney to find the best option for you.
Answered on Oct 29th, 2012 at 4:32 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
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The household income will come into play but should not be an issue. The issue will be if there is any equity in the mobile home you live in. Speak with an attorney in your jurisdiction
Answered on Oct 29th, 2012 at 1:13 PM
Probate and Estate Planning Attorney serving Harrison, MI
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David T. McAndrew, Attorney at Law
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First, sorry to hear about your circumstances. Kudos for taking care of your mother. Your mother?s default, has NO effect on your finances, nor bankruptcy. If the CC companies NEVER sued her for her default, then they can not collect from her until they get a Judgment. I doubt at this point, with the statute of limitations, that they can ever proceed in that manner. Second, in bankruptcy, you only have to show her contribution to your monthly finances. Her income is not attachable for your debts. Additionally, your IRA, as a retirement asset, is also excusable. Your share of the mobile home is also probably excusable, since it is jointly owned, and with the Michigan exemptions, and your mother?s elderly age, could be totally exempt. Talk to your bankruptcy attorney, you should n t be worried. Best wishes.
Answered on Oct 29th, 2012 at 1:12 PM