Bankruptcy for senior??

January 21st, 2011 by Questions

Our mother is in hospital and will be going to Long-term care sometime in future, she current has CPP, Old age pension and small work pension. She has credit card debt of $80,000 with no assets. Should she claim bankruptcy? Also she lived in our house for past 17 years paying us rent with no lease. Can creditors come after us for us to pay them the rent she was paying us since she stopped paying the minimum payments?
WE are concerned they may come after us?? thanks

Posted from: Ontario

Questions

One Response to “Bankruptcy for senior??”



, A licensed trustee said:

Your mother is likely creditor proof which means she may not need to file for bankruptcy. Since her only income comes from pensions and pensions cannot be garnisheed, there may not be any point to having her file. If the stress of the debt is impacting her health then perhaps it may be worth filing – you really need to speak to some one directly (rather than a website).

You won’t like this part of my answer…

Whomever you talk to is going to want to know how your mother managed to accumulate $80,000 in debt and why if she lived with you for the past 17 years you are only stepping in now to do something about it?

It is unlikely any creditor can pursue you directly – unless they can prove you benefited from the debt and were directing you mother’s spending.

That’s not an accusation – you just need to be prepared for these kinds of questions. Sorry.

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