Alimony and creditors in personal bankruptcy
March 25th, 2006 by Questions
My mother and I live in a rental home. We haved lived there for more than 10 years .I am disabled and receive 440 a month . She is so far in debt.They are taking her to court to get a judgement .She cannot pay her debt.It is almost 40 thousand . Her income comes from old age security,CPP , and alimony from my father(approx 1200 /month). She has no property .It is all credit card (charged when things were good). She gave me several supplementary credit cards and I used them. I have a car worth 6 thousand and owe half of that to the bank.My disabilty keeps me from working.Will the credit card companies come after me for the money? I can’t pay anything with an income of 440 dollars. Could they take my vehicle? I have good credit now.If they came after me it would ruin it .Even if they do come after me they can’t get anything. My mother is about 6 months behind on all the cards and never once have they contacted me . Collection agencies call and mail her notices every day. None of these creditors are on my credit report .Can the courts garnishee my mom’s alimony ( it is only 200 a month). Any insights?
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March 27, 2006 at 10:32 am, Barton Goth, GCO Inc. Bankruptcy Trustees said:
This depends on a 2 things. First, sometimes by signing the back of a supplementary card you may have authorized the credit institution to list you as a co-borrower on the account. Although, from the sounds of it I donâ€™t expect that this has happened as all the billings have been in your mothers name. Second, some credit card institutions have been known to pursue the supplementary card holder for any purchases they have made on the account. Whether or not this is going to happen I really canâ€™t even begin to guess, it is not very common, but is possible. As for the vehicle, as long as the equity in your vehicle is less than the amount that is allowable in your province you donâ€™t have to worry about that. As for your mothers alimony, I donâ€™t believe that they would be able to garnish these funds directly, but they may be able to get a court order to seize funds in a bank account, but couldnâ€™t garnish the alimony directly.