What to do if my mother recently found out a judgement was made against her for a old credit card but the amount is too high for her to pay back?

She’s on a fixed income. Can she file bankruptcy to keep from having to pay it?

Asked on August 29, 2013 under Bankruptcy Law, Georgia

Answers:

Terence Fenelon / Law Offices of Terence Fenelon

Answered 7 years ago | Contributor

A bankruptcy may relieve her from paying a judgment but there may exist other alternatives.  Many unanswered questions are posed in your simple inquiry.

Does your mother have any other debt?  Is she willing to wipe out everything to avoid the judgment.  You can't pick and choose who will be affected by a bankruptcy filing.  Additionally, does your mother have any assets, such as a house?  If so, a judgment lien may have already attached which would survive the bankruptcy.  Depending upon equity, if any, she could expose the house to creditor claims.  There are too many unanswered questions to definitively render advice.

Bankruptcy is a proceeding to relieve undue financial hardship, but its availablity is limited by the circumstance of each case.


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