Terminal Illness & Bankruptcy

[newstart90]

What is the name of your state? Minnesota
My husband has a $22,000 credit card judgement against him. Because of a long drawn out property settlement ( which has just been resolved) he has not been able to declare bankruptcy on that judgement.
His only income is from retirement, so that money cannot be touched ( even though they try). He owns a modest home ( which they cannot touch, either).
Now...he has a terminal illness and is worried that the house and/or the insurance (burial) policy will be seized after his death.
Could they attach his estate ( total about $100K ) for that judgement?
Should he try to get a bankruptcy to absolve that debt? I should mention that lawyer and medical fees are already exceeding our income and don't want to pay another lawyer more money unless it is necessary.
Thanks

 

[Ladynred]

If there is money in his estate after he dies, then yes, the judgment creditor can and likely will go after it. Debts of the deceased are paid out of the estate thru probate. With 100K of equity, I'm guessing probate WOULD happen and the creditor will be there with his hand out. So, if he wants to protect his home, then bankruptcy may be the answer. He needs to consult with a BK attorney and make sure the lawyer knows about the judgment and any liens. Most BK attorneys give free initial consulations, so talk to 2 or 3.

The insurance policy may or may not be exempt. Some policies are written in such a way as to prevent any debts being paid out of the proceeds - check the policy.