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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2875
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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My dad is 75 yrs old in poor health & owes about $18,000 in

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My dad is 75 yrs old in poor health & owes about $18,000 in credit card debt. He owns his house which I think is worth about $90,000 & he has about $17,000 left on his mortgage. His only source of income is Social Security & due to his income & his medical expenses he is no longer able to pay his credit cards. My question is if he quit deeds his house to his son & then stops paying his credit cards what can the credit card companies do to him? Can they sue him, still take his house even though it's in his sons name or can they garnish his Social Security? I'm just not sure what to tell him to do so any advise is more than welcome.

Thanks,
Monica
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 6 years ago.
Chat Conversation Started
Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

They cannot garnish social security

Terry L. :

If the quitclaim deed is reasonable, the credit card companies would be unlikely to challenge it if they do go to judgment.

Terry L. :

They can sue him though, freeze his bank accounts but that would be about it if they have no assets.

Terry L. :

Bankruptcy may be an option. Each state has exemptions to protect assets and in PENN federal exemptions may apply. Talk to a local bankruptcy attorney to review these exemptions, to see if any or all of the home would be covered based on any equity in the home. get an appraisal or market comparable as well, since values have fluctuated so much recently.

Terry L. :

Thanks for your question, good luck.

Terry L. :

do you have any further questions?

Terry L. :

are you there?

JACUSTOMER-u34w23yd- :

If they freeze his bank accts than that means they will be taking his Social Securtiy money. I guess if he sold his house than there is nothing that the credit card companies can do right? I guess I'll just try to make him go see an attorney.

Terry L. :

true, if he sells his house they won't be able to do much, just be sure not to put the money in the bank.

Terry L. :

The bank account can be frozen, then when the hearing comes up, the court would allow the account to be unfrozen if it was covering the social security in many cases.

Terry L. :

if he gets sued, he should switch to a hard check to avoid that issue.

Terry L. :

I would look into the ch7 though, it may be the easiest way to discharge the debts, Most cases, assets aren't liquidated either, depending on the equity involved.

Terry L. :

most offer free consultations too, so it wouldn't hurt to look into that

Terry L. :

any other questions?

Terry L. :

i guess not. if you do you can reply and I'll be happy to answer them. Thanks for your question, good luck to you and your father.

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