senior widow left with debt

July 24th, 2007 by Questions

Would it be to her advantage to claim bankruptcy as she is in debt of $60,000? She does not own a house but she does have pensions coming in. Most of her money goes to paying creditor. She has a car that she pays for but would not want to lose it as this is the only enjoyment she has. She pays rent and utilities as well. The rent,utilities and car payment
are not included in the debt.
Could she lose her pensions
from my father?

Questions

One Response to “senior widow left with debt”



, Barton Goth GCO Bankruptcy Trustees said:

In most cases the senior widow with debt and no major assets does not technically need to file bankruptcy as they are often in a position we refer to as “creditor proof.”

What this means is that because the income coming in is pension income and likely all the assets owned by the senior are exempt from execution (i.e. the creditors have no legal means to seize), all the creditor can do is harrass.

Even if the collector should waste their time with sueing, when they obtain judgmet due to the nature of income and the limited assets, there is nothing the creditor can do to enforce judgment.

So while the senior widow left with debt doesn’t have to do anything in my opinion it comes down to stress. There is stress associated with being in debt and even more stress associated with dealing with bill collectors.

If the person in question isn’t to bothered by this stress then doing nothing is a valid option, but if the stress is affecting health and sleeping patterns and those things then I recommend contacting a local trustee and look into filing for bankruptcy and get the harrassment stopped.

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