My wife is disabled and her only source of income is from SS. She is being sued over a credir card that is in her name and her name alone. She has several other cards that are nearing the 6 year mark. Would bankruptcy be a good idea for her, or not? Is her SS safe from garnishment ? Are My wages safe from garnishment over her debt? State of residence, Georgia. Thanks and Merry Christmas

[QUOTE=kthom80733]My wife is disabled and her only source of income is from SS. She is being sued over a credir card that is in her name and her name alone. She has several other cards that are nearing the 6 year mark.

Would bankruptcy be a good idea for her, or not? Does she own land anywhere? What about her home? Has she been sued? Does any creditor have a judgement against her?

Is her SS safe from garnishment ? Yes

Are My wages safe from garnishment over her debt? Yes, as long as you don't let a creditor get a default judgement against you.

No, she does not own any land, but we sold our home in Dec of "06. The proceeds, (now under 40k), have been in a separate account (not in her name) since Jan or Feb. We are not trying to be deadbeats, but with her disability, I feel that any money we have needs to go to her present and future medical care. No, there are no present judgements, but she was served a couple of days ago . We are just not sure what to do. The statute of limitations here is 6 years. According to the credit bureau, this account was opened in 12/01. Seems to me like the 6 years have passed, but I'm sure this lawyer is smarter than that. Thanks so much for your input and advice,

The SOL only has a bearing on how long the creditor has to use the courts to collect. It does NOT affect the obligation to pay. Generally the SOL refers to the last activity, not when the account is opened.

You also need to be careful because some states rule that a spouse assumes the debts of the other spouse. But if that's not the case, your wife would appear judgement proof.

There is a question on the bankruptcy forms with respect to ownership of land; I do not recall if the question looks back two years or longer, but your wife needs to know what the question is, and her answer, before filing. Was the land titled jointly?

Also, is there a chance that she might inherit land from a family member in the state where you anticipate the judgement will be filed? The judgement, if recorded, will create a lien against any real estate she may own in the future.