My mom is 75 years old. She is in debt to four credit card companies. She has no life thinking of that debt and in reality cannot afford to pay it. Can she get out of that debt by filing bankruptcy? If so, what would creditors do?
-- JOE
A.
Bankruptcy often makes even more sense for the retired than for those still in their working years: income is unlikely to increase and the stress of overwhelming debt takes a toll on the quality of life.
The critical question for the elderly is what possessions do they have and what exemptions are available to shelter those assets. An experienced bankruptcy lawyer in her community can review her assets with this in mind.
The options for a creditor of someone who has filed bankruptcy are largely confined to a possible objection that the debt was incurred by fraud, which in this context usually means, without an intent to repay. The goal of such an objection is a repayment of the fraudulently incurred debt. Even if that were the facts, a credit card issuer is unlikely to invest the money in such a suit against one of advanced years.
