My mother is 75 years old and is retired. Her income is from two different sources, one is to pensions that she collects on both hers and her late husband and the other is Social Security. Her combined annual income is approximately $29,000. At this time she has credit card debt totaling $15,000, a $43,000 mortgage on a home appraised at $75,000 and a car loan with a remaining balance of $5000. I manage her finances and at this time it is impossible for her to afford all of her bills. I am trying to decide for her if a chapter 7 bankruptcy is a good option for her to get rid of her credit card debt. At this time she is current on all payments, but only been able to make the minimum payments. If she was able to get rid of her credit card debt, it would make it much easier for her to afford her car and mortgage payments. In fact she would be able to pay these both off earlier, if she was no longer restricted by her credit card debt. Will she be able to keep her house in her car, even if she files chapter 7 bankruptcy?


The answer to both is Yes, your mother can keep her house and car.  As long as, her mortgage is up to date and her car payments are up to date, she will be able to keep both her house and her car. It seems in the situation a chapter 7 bankruptcy is the best bet, as it would eliminate all her credit card debt and allow hurry to retain her home and her car. A chapter 7 bankruptcy would not affect her income at all and as long as she keeps paying on the mortgage and car loan, she will be able to keep both. It is always my advice that she should write both of those off, just in case something happens in the future and she can no longer afford them. Considering her age, building her credit score is really not as important to her as it is someone in their 20s to 40s, as she already have a home and a car, which are the most important things credit are for.

Joseph F. Botelho, Esq.

Attorneys At Law

901 Eastern Ave.
Unit 2
Fall River, MA 02723

Office:  888-269-0688


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