Legal Question in Bankruptcy in Ohio

My 87 year old mom has a collection agency dogging her about an account she & dad had while he was alive. The original balance was $16K. My younger brother was her POA and supposed to be making her payments, but didn't. She fell over 180 days delinquent, unbeknownst to us, and now the collection agency is pursuing her. I talked them down to $6520, but they want a large (650) payment up front and the rest in payments over 12 months. Due to her increasing health problems, more medical bills she is unable to pay this. Should she file bankruptcy? Her only income is SS & a small retirement from my dad's job. She is aware she owes the money but can't see her way clear to make this payment. She lives with us as she is no longer able to live alone, she owns nothing. Somebody said something about her being judgment free. Can you explain this? Also, if we negotiate and pay this, would we still be liable in the case of her death? Thanks!


Asked on 6/17/10, 7:54 am

1 Answer from Attorneys
David Michael Benson Benson Law Firm

Your mother's Social Security cannot be garnished, so she is probably virtually judgment-proof (i.e., even if her creditors get judgments against her, they won't be able to collect anything) if that is the lion's share of her income and she has no other assets. However, I've known people to file Chapter 7 bankruptcies under these circumstances just to get some peace of mind (to stop the harassing phone calls and letters, as well as not have to worry about protecting bank accounts that may contain non-SS funds).

As far as your personal responsibility for her debt, generally you cannot be liable on debt you did not incur. Good luck!

- BensonBankruptcy.com

Read more
Answered on 6/17/10, 2:02 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Ohio