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Fixed income and bankruptcy?


kleep
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I have family who are in serious debt. They owe tens of thousands of dollars in medical bills and more in credit card bills (mostly because they paid some of the medical bills with cc). He only has social security income, she has no income but is applying for disability. They do not own a home or have any other equity.

They contacted the local pro-bono law office to see about reduced prices for filing bankruptcy, but they were told that since they had nothing that could be legally garnished - even if sued, that their office could not help them.

Now I'm wondering what they should do. They have no means of paying the debt (they're struggling to pay the utilities), or for a regular attorney to file bankruptcy. They're only in their mid-sixties and aside from her serious heart condition are in good health and I would hate for this to burden them for the rest of their lives. We have a 15 year SOL, btw.

This is also becoming an issue since one of the medical bills is to the heart doctor and he will eventually have to stop seeing her because of the debt. If they got rid of everything else, they might be able to make payments on that one, but?!?

We're just at a complete loss as to whether or not to file or what to do.

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If they're execution proof {nothing to garnish and no assets}, I'd say stop paying all debts except for the heart specialist.

No need to file a bk. If they get sued, just be sure they show up with proof that their income isn't subject to garnishment.

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