Bankruptcy or not
Date: Mon, 11/01/2010 - 14:20
A bit of history of the situation first:
My sister was married for 25 + years. A year ago she left her husband and moved from California where they lived to Arizona. She is currently going through a divorce. I have taken over all her finances because she has MS and the leasons are affecting her brain.
When she left her husband July 2009 in their marital home, he was suppose to make the mortgage payments. Unfortunately he didn't as he moved in with his girlfriend in Dec and so the house went in to foreclosure and was auctioned off on Oct 21, 2010. Looking at her bills I see that although she initially told me she only had 1 credit card and one loan that she in fact has the following. I don't think this was done delibertly but with the MS she forgets and gets confused easily.
Loan - $9,580.18 (Bank of America)
Credit Card - $7,446.32 (Bank of America)
Credit Card - $1,453.95 (Bank of America)
Credit Card - $3,600.21 (Citibank)
They are all in her name only but because CA is a community state her lawyer says her husband has to pay 1/2 but we have to get proof that they were opened during the time of the marriage. My sister told her lawyer that the Loan was in fact her's only and that her husband knew nothing about it.
2 of them are in collection agency hands. The one for 7K is in the hands of Northstar. The one with Citibank is with Protocol
Now my question. Should we consider bankruptcy. My sister is on Soc Sec as she is 57 and because of the MS is unable to work. She gets some child support as she has a 14 year old daughter with Mild Asberger Syndrome who receives $500 in social security as well, then she gets some spousal support.
We aren't sure what would be better file bankruptcy if she qualifies or just try to pay off the cards as best she can although she will never be able to pay them all off and with the house having gone in foreclosure which is better.
We will appreciate any feedback at all.
My sister was married for 25 + years. A year ago she left her husband and moved from California where they lived to Arizona. She is currently going through a divorce. I have taken over all her finances because she has MS and the leasons are affecting her brain.
When she left her husband July 2009 in their marital home, he was suppose to make the mortgage payments. Unfortunately he didn't as he moved in with his girlfriend in Dec and so the house went in to foreclosure and was auctioned off on Oct 21, 2010. Looking at her bills I see that although she initially told me she only had 1 credit card and one loan that she in fact has the following. I don't think this was done delibertly but with the MS she forgets and gets confused easily.
Loan - $9,580.18 (Bank of America)
Credit Card - $7,446.32 (Bank of America)
Credit Card - $1,453.95 (Bank of America)
Credit Card - $3,600.21 (Citibank)
They are all in her name only but because CA is a community state her lawyer says her husband has to pay 1/2 but we have to get proof that they were opened during the time of the marriage. My sister told her lawyer that the Loan was in fact her's only and that her husband knew nothing about it.
2 of them are in collection agency hands. The one for 7K is in the hands of Northstar. The one with Citibank is with Protocol
Now my question. Should we consider bankruptcy. My sister is on Soc Sec as she is 57 and because of the MS is unable to work. She gets some child support as she has a 14 year old daughter with Mild Asberger Syndrome who receives $500 in social security as well, then she gets some spousal support.
We aren't sure what would be better file bankruptcy if she qualifies or just try to pay off the cards as best she can although she will never be able to pay them all off and with the house having gone in foreclosure which is better.
We will appreciate any feedback at all.
Personally, I would file bankruptcy. She needs a fresh start.
Personally, I would file bankruptcy. She needs a fresh start.
