Longmont, CO Bankruptcy Law Firms & Lawyers

Judgment proof just means that even if a creditor gets a judgment, there is nothing to collect against. I suppose there may be some disagreement as to whether she is really judgment proof. I don't think someone who owns real property is really judgment proof because to me judgment proof means there is nothing that the creditor can attach or take. Understand that judgment proof doesn't mean the creditor can't or won't sue, it just means that even if/when they do, there is nothing to go after. Social security is exempt so that is safe. If however she has some other earnings, wins lottery, etc such can be attached. Since a creditor can also put a lien against real property I don't consider your mother to be judgment proof. I'd want to know what her plans are with regard to the house. There is a generous homestead exemption outside of bankruptcy. But what about filing bankruptcy now when she can use 703 exemptions with much more generous exemptions in different categories assuming of course she has no equity in the property. Who owns the car? How is it titled? Are the income taxes dischargeable? If not now, then when would the past due income taxes be dischargeable? Would make sense to wait maybe until they are. Need more facts to figure this out. Am I rambling? What you really want is to sit down with a local bankruptcy attorney to talk about what's what, see if bankruptcy makes sense, sometimes it's not just a matter of filing but when is best to file. Most bankruptcy attorneys offer a free consult and no online question and answer session can replace the value of an interactive discussion. I can't say if the car will be taken without knowing if she is on title, how much the vehicle is worth, market value of the home minus loans, and value of other property. There is yet still another possibility that even if it is titled, since you made all the payments and paid all the maintenance you could claim it doesn't really belong to her, but don't know if that's even an issue.

You have to move the Bankruptcy Court to re-open your case and to avoid the lien against the property. This entails a motion to re-open the bankruptcy case for purposes of filing to avoid the lien against the property. A motion and a proposed entry are filed, time for objections needs to run - the judge may, depending on the circumstances and jurisdiction, require an appearance by counsel or you, if you are pro se.

Good question and you are right to look at that issue. Your car repair is a very reasonable expense, especially in our state. The court is looking for evidence of high living, especially high living instead of paying your creditors. The thought goes - why should you buy a new TV and not pay your creditors.