Silence Is Not Always Golden In The Valley

Author: Alexander Littlejohn/ Date: February - 8 - 2011

This personal bankruptcy story was posted on the internet in January of 2011 as comments in a bankruptcy discussion: “My father still hasnt filed for bankruptcy and hasnt gained employment. Its really seeming very hopeless on the employment side and his depression/unmotivated attitude is keeping him from proactively searching for jobs. And now on top of it all. He totaled my car that I was storing at his apartment until he had a job so he could insure and drive it. I own the car and its uninsured. The other persons insurance is saying they will come after me since Im the owner. I have nothing and dont really know what to do. Theres a court date next Monday and Im not sure if I should go or not. Would filing for Bankruptcy now help at all for this?”

The debtors good son in this personal bankruptcy illustration has previously asked for advice on whether his father should file bankruptcy or not. His father has no assets or income, and is disabled to boot. The son is taking care of him paying the current basic living expenses- rent and utilities, while the father lives on food stamps. Bill collectors are jamming the airways and mail system trying to collect from the judgment-proof father. In this update, the son wants to know if it is time to file for bankruptcy on behalf of his father after the father totaled his car. The son is thinking of opting out of the court scene to defend himself. The son appears to possess very little assets, but he does have income to protect. Sometimes, being silent is not always golden.

Filing for bankruptcy protection is really designed to protect enough of your assets to give you a fair try for starting over. If you absolutely have no income or assets, as is the case of the father, you are truly judgment-proof. That means creditors can get judgments on you all day long, and there will still be nothing they can get. That also means that there is really no reason to file for bankruptcy in a case like the father until he has something to lose. Once you file for bankruptcy, you have to wait up to 8 years before you can file again.

The son, on the other hand, has something to lose. He could have his wages garnished if the insurance company wins a judgment, and he lives in a state that allows garnishment. He also might have liens attached to any real property he owns, like his car. That means when he sells the car, he will have to pay the lien holder first, that is, if that state allows attachments to vehicles. The son, depending on the outcome of the lawsuit concerning his fathers totaling his car, may need bankruptcy protection much more than the father. Certainly, it might be in his best interest to attend the court date to protect his own interests. Also from the sound of the events, considering hiring an attorney to represent him at the court date might be wise.

As a society, we have come a long way since the days of debtor prisons. Based on the information provided, neither son or father should go to jail for getting into their predicament. The Constitution provided for our protection against those antiquated ways when it gave Congress the power to legislate bankruptcy law making the primary laws governing bankruptcy federal. State laws supplement the federal laws by clarifying the necessary details. The laws have been designed to protect both creditor and debtor making bankruptcy a legal proceeding designed to allow the honest person or business to work their way out of a bad financial situation, or in some cases, to start afresh.

There is no easy way out of a bad financial situation. They can happen to anyone, and the way out of them amounts to a lot of hard work and determination to overcome. Maybe you have found yourself in a difficult financial situation, and you are considering bankruptcy as an option. If this is the case, you are going to need a bankruptcy lawyer to properly help you understand how the complex bankruptcy laws may apply in your situation. So, if you determine you are in need of relief from the stress associated with debt and you live in or around the metropolitan areas of McAllen, Edinburg, or Mission, Texas, contact us today. We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.

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