Can credit card creditors garnish my 92 year old mothers social security check for debt owed?
Full Question:
Answer:
See the following website:
http://www.uslegalforms.com/bankruptcy/idaho-bankruptcy-forms.htm
In a Chapter 7 bankruptcy proceeding, a court-appointed trustee will divide
the debtor's property into “exempt” property and “non-exempt” property.
Types of property that may be exempt are the debtor's home, auto, and
household goods. There are dollar limits on each type of exempt property.
The trustee will sell all of the debtor's non-exempt property and use the
proceeds to pay off the debtor's unsecured creditors. An unsecured creditor
is one who does not have a security interest in any of the debtor's property
as an assurance that the loan will be repaid. Examples of this would be credit
card debt or a signature loan. Secured creditors are protected by their
security interest in the debtor's property (called collateral). If a debtor stops
making payments, the secured creditor can take possession of the debtor's
collateral. Once the exempt property is liquidated and distributed among the
unsecured creditors, the remaining unsecured debt is discharged. However,
some types of unsecured debt, including student loans, child support, and
taxes, cannot be discharged, even in a bankruptcy proceeding.
