Hi, thanks for submitting your question today. Whether bankruptcy is the best choice or even a possibility in this matter will depend on the total debt owed in relation to income. Being that social security is the only income it is likely that she'd easily qualify if the debt is more than a few thousand dollars.
As far as the debt goes, social security income is not garnishable in a civil lawsuit. But the lien on the home could be executed to satisfy the debt, and the car may be taken and sold to satisfy the debt. Assuming she has no defense to the lawsuit, these are the possible things that can happen.
Bankruptcy may be the best option here because, she probably will not suffer any adverse consequences as a result. I can't imagine at this point a credit rating means much to her.
What I would recommend to her is to get a consultation with a bankruptcy attorney, or use this online bankrutpcy tool
to determine if she can even qualify for bankruptcy. If bankruptcy is an option it probably is the best outcome for her assuming the debt is valid.
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