Is Sr. Citizen Bankruptcy a Good "Why Not" Idea?
July 17, 2014 6:05 PM Subscribe
My mother is 80 years old and has good credit but wonders if she'll ever use it (or even if anyone would allow her a major purchase that would require a loan/credit, considering her age/income/lack of any savings or assets, which seems unlikely from her experience
). Her income is (not much) fixed social security and could qualify her for bankruptcy. She could wipe out $200/month of credit card payments with a BK without affecting her house (she co-owns with a sis), and she could keep (not declare) a credit card for emergencies.
Are there possible downsides to BK? Or is it a clear-cut case of more income for her senior years?
posted by anonymous to Work & Money (10 answers total) 2 users marked this as a favorite
Would a BK affect the credit offered her by the one CC she would keep and not list as a debtor on the bankruptcy?
She wonders about unlikely emergencies or situations, such as if someday she might be able to help me if I need a co-signer for a business loan or such if she doesn't declare BK -- is it likely her credit would even help me at her age?
Are there other downsides she needs to be aware of?
Or should she just enjoy her current credit cards for a while then declare BK, and then enjoy an extra $200/month?