Debt Relief for Those with Nothing

18 Feb Debt Relief for Those with Nothing

Bankruptcy is a remedy that may allow the individual to keep property that he otherwise might lose to a creditor with a judgment.  That “property” might be a home, a bank account, personal property or wages.  But what about the person who has nothing that isn’t exempt from claims of creditors?  When is bankruptcy appropriate for the person who is judgment proof?

The asset that never appears on a list of possessions is peace of mind:  freedom from the haranging of the debt collector and the unspoken fear of the unknown power of the creditor.  That asset can be protected with a bankruptcy discharge.

If you have no assets that a creditor could take from you and you are not overwhelmed by collectors, there is little reason to file bankruptcy if you believe your financial situation is unlikely to change.  Tell the collectors to pound sand.

However, if the stress and uncertainty of owing money you can never repay eats into your ability to relax, to function, to interact, to sleep, then you might consider bankruptcy for its mental health benefits. 

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Cathy Moran, Esq.

I'm a certified specialist in bankruptcy law (California State Bar Board of Legal Specialization) practicing in the San Francisco Bay Area for more than 30 years. In addition to practicing bankruptcy law, I train new practitioners at Bankruptcy Mastery.
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