Q: A widow being threatened with collections by an adjuster who nolonger wants to work with the lawyer hired.
A widow, whose sole income is social security, hired a public adjuster who nolonger wants to work with the attorney they hired. The adjuster is now putting pressure on her to pay him $12,000 or more. Can she file chapter 7 bankruptcy? If so, will it stop him from taking any further action against her?
A:
The Bankruptcy Code defines who is eligible to file for Chapter 7, as well as all other forms of Chapter relief. An individual who has not filed for bankruptcy relief and gotten a discharge recently (6 years), and whose income is less than the "median income" for your region is eligible for bankruptcy relief.
Yes, the filing of a bankruptcy triggers an automatic stay against all actions to attempt to collect money from you, including phone calls and correspondence, among other things.
That said, if the "public adjuster" is the only significant debt you have, you should consider taking no action at this time (you don't divulge your other assets, debts, etc.); if your sole income is SSI, that income is generally exempt from seizure by a creditor.
Take this opportunity to speak with an experienced attorney authorized to practice in GA about your best options.
Timothy Denison agrees with this answer
A: Yes. A bankruptcy will forestall all collection efforts.
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