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Should I file for Bankruptcy?


D123
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Hello,

My friends father wants to know if he should file for Bankruptcy or just stop paying creditors. He has credit cards that he has been paying the minimum on for years. He has no job and has been collecting social security. With health problems and no assets would it make sense to just stop paying creditors or go find a lawyer and file bankruptcy?

Thanks for reading!

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I'd never file BK unless I had to. If what you post is correct, he would be crazy to file BK. He can send full C&D letters to the creditors and let them get all the judgements they want. If he is in fact judgement proof, as you posted, why would he want to spend money on a BK atty to get debts that can't be collected anyway discharged?

Sound like your dad is older, won't be joining the work force again and other than winning the lottery is not going to be coming into money anytime soon.

You can discharge judgements just as easy as you can the debt that brought those judgements on.

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Hello,

My friends father wants to know if he should file for Bankruptcy or just stop paying creditors. He has credit cards that he has been paying the minimum on for years. He has no job and has been collecting social security. With health problems and no assets would it make sense to just stop paying creditors or go find a lawyer and file bankruptcy?

Thanks for reading!

From my personal experience, bankruptcy was the preferred choice. The money spent, 299.00 plus about 40 bucks for the online classes, was well worth ending the problems. At least a BK7 has a time-frame of 10 years, whereas judgments can go to 10 years and beyond, most states allowing a renewal for the same time period of 10 years or so. A 10,000.00 judgment could become, easily, a 100,000.00 debt in the future. And then, there's the "possibility" of windfall. A windfall, those creditors could come after, so DON'T win the lottery.

Of course, if a person is truly judgment proof, nothing overtly bad happens. But if a "fresh start" is wanted, BK7 is a good choice. And personally, I didn't want to have the creditors' harrassment continue. That gets old, and I'm too cranky.

In addition, a simple BK7 has no need of an attorney. The forms are free on the Fed Courts' websites, and it's essentially just filling in the blanks, with many of the forms non applicable. I did not obtain an attorney, and I do not know of anyone who did. Four people I know, including a 70+ year old ex-librarian, filed pro se, too. If a person feels he or she needs a guide, for less than 20 bucks, there are "how to file BK&" to be purchased, even in E book formats.

Edited by LearningasIgo
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What would be gained by filing for BK?

Creditor harassment is easy to deal with. I just took the phone off the hook, and gave a cell number to people I wanted to talk to. You don't have to talk to creditors and debt collectors.

A better option than BK, IMO, is studying this site and learning how to fight creditors. He might even make some money suing debt collectors that violate the law.

Edited by nobk4me
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