Already has a judgement against her? Any options?

My mother was involved in an auto accident about 8 years ago or so. The accident was ruled her fault (which is debatable). Regardless, she ended up needing major emergency medical surgery on her back. She didn't have any medical insurance at the time. She was making a couple hundred dollars a month and living with family. The balance scared her so she didn't want to deal with it. They sent her a notice for court and she didn't go. They got an automatic judgement against her for the balance. After interest and the principle, she will never be able to pay the balance. If she signed up for government assistance it would have been paid but she made mistakes. Is bankruptcy her only option? She currently lives with massive back pain and a curvature of the spine. She refuses to get on disability since she wants to work but she is limited. Can she write to the state to petition them to pay or is it too late since she has a judgement against her?

Dale said:

My mother was involved in an auto accident about 8 years ago or so. The accident was ruled her fault (which is debatable). Regardless, she ended up needing major emergency medical surgery on her back. She didn't have any medical insurance at the time. She was making a couple hundred dollars a month and living with family. The balance scared her so she didn't want to deal with it. They sent her a notice for court and she didn't go. They got an automatic judgement against her for the balance. After interest and the principle, she will never be able to pay the balance. If she signed up for government assistance it would have been paid but she made mistakes. Is bankruptcy her only option? She currently lives with massive back pain and a curvature of the spine. She refuses to get on disability since she wants to work but she is limited. Can she write to the state to petition them to pay or is it too late since she has a judgement against her?

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Why didn't she report the accident to her insurance? DID she have auto insurance at the time?

justblue said:

Why didn't she report the accident to her insurance? DID she have auto insurance at the time?

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She has/had auto. She only had the minimum for personal medical on an auto required by the state. She didn't have personal medical insurance though. They pursued her for the excess unpaid.

Dale said:

Is bankruptcy her only option?

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Bankruptcy is ONE option.

Depending upon her individual circumstances, she might have other options.

If she receives social security payments because of her age, she is what the law terms a "judgment proof" debtor.

If she receives social security payments because she is permanently disabled, she is what the law terms a "judgment proof" debtor.

A "judgment proof" debtor that hits the lottery, inherits millions from a relative, hits a jackpot at a casino; would no longer be considered "judgment proof".

If, however, NOTHING changes with her social security payments, welfare transfer payments, or any other form of government assistance; she'd remain "judgment proof".

How much is the judgment against her?

Is she receiving welfare payments, or other government assistance payments?

Is she a recipient of social security benefits of any kind?

If the answers to the last TWO questions is YES, it matters NOT what the answer to the first question is.

One final question, how old is your mom?

She is 56. She was maybe 45 when the accident happened. She just lost my dad and I was in college. She doesn't collect any benefits from the state besides medical insurance. She doesn't want to be on ssdi. She try's to be self sufficient but she realizes this is going to drown her financially. It just confuses me as to why the emergency room didn't initially set her up with government insurance when she told them she doesn't have insurance. Can she retroactively show her income with her tax returns to get help? I feel like my families biggest concern is she is listed as a trustee to some assets when a family passes away and they don't want those assets affected.

Dale said:

Can she retroactively show her income with her tax returns to get help?

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She can certainly try.

Dale said:

I feel like my families biggest concern is she is listed as a trustee to some assets when a family passes away and they don't want those assets affected.

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You must be TRUTHFUL when you seek government benefits.

If you lie, it will be discovered sooner or later, and will bite you very hard.

If she has assets, you should assist her in liquidating the assets so that she receives the medical care and assistance she requires.

If there is a judgment against her, sooner or later, the judgment holder will discover the assets and petition the court to seize said assets to satisfy the judgment.

Don't assume the judgment holder is in the dark about what she has, either.

It might behoove you to go with her and discuss all of these issues with a local lawyer.

Bon chance.

Dale said:

Is bankruptcy her only option?

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Well...no. She can continue to do what she's been doing for the past eight years. Ten years after the date of entry of the judgment, the judgment will become unenforceable unless the judgment creditor renews it. Has the creditor done anything over the past eight years to try and enforce the judgment?

Dale said:

Can she write to the state to petition them to pay

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I'm not sure what you're envisioning here or who "them" refers to, but there is no agency of the State of California that will pay the judgment against her.

Dale said:

I feel like my families biggest concern is she is listed as a trustee to some assets when a family passes away and they don't want those assets affected.

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Then your mother should resign as trustee. Or, if she won't actually become trustee until the family member dies, that person should change the terms of his/her will or trust.

Being trustee of a trust (not one's own trust) doesn't make the trust assets available to a creditor of the trustee.