I co-signed a lease with my grandson and he and a buddy did approx. $8,000 worth of damage to it. They were both convicted of felony crim mischief and ordered to pay restitution to the owner. The prop mgmt. company is seeking (and will probably get on 3/9) a judgment against me for the damage. I am 65, receive social security, a federal govt pension and work 20-30 hours a week at Walmart. My credit score is very bad and the only asset I have is approx. $70,000 equity in my home. Should I ignore the judgment and let it sit (maybe a lien will be placed on my home?), file for bankruptcy, or ???? I have about $15K in credit card debt as well. I don't believe any of my income can be garnished. Thanks for any advice.
I agree with the others with respect to exemptions, etc. and consulting with a bankruptcy lawyer.
I only write to add that the leasing company/owner cannot collect twice. If there is a restitution order out there, that converts to a civil judgment. At that point I am not sure that you can be held personally liable for the criminal acts of another; and it would constitute a double recovery.
In most jurisdictions the only party who can repay restitution is the perpetrator of the crime. In this case your grandson and his buddy.
The state has the primary obligation of collecting restitution, though in Colorado the victim can do so on their own. If so, the victim must notify the court that they are choosing to collect on their own. They cannot collect two recoveries for the same injury.
There is a brief explanation of this here:
http://www.courts.state.co.us/Self_Help/Restitution.cfm
I suggest that you speak to a lawyer who knows the ins and outs of this issue, likely found under criminal defense.
Robert Vance SalterDivorce / Separation LawyerWheat Ridge, CO ·
If you don't file bankruptcy the creditor will be able to garnish 25% of your take-home pay from your job. A lien could be put on your home, but the homestead exemption is enough to protect the equity so they could not actually foreclose on the house, but the lien would have to be paid before the house could ever be sold or refinanced.
The judgment and the credit card debt may make a bankruptcy filing make sense.
I agree you should consult with an attorney. While your social security is safe, your wages and bank accounts are not. In addition, from a long term perspective, you will want to explore the impact of the judgment as a lien on your home.
I gather as a grandparent that you are over the age of 60. If so, you have a homestead exemption of $90,000 to protect the equity in your home (Colorado). Unless you have other non-exempt property that we don't know about, it appears that the only way the landlord could collect is to garnish wages at Walmart (and you may not earn enough to allow a garnishment to happen) or to put a Judgment lien on your home (which wouldn't do them any good unless and until your home has more than $90,000 in equity. However, with that said, property values are going up and you may be gaining more equity in your home as you make mortgage payments. Once your equity gets over $90,000, you'll have a problem. Given your other credit card debt and the fact that you likely don't need to depend on future credit (besides, it sounds like it is already bad), you may seriously want to eliminate the problem by filing a bankruptcy. I would suggest that you give a bankruptcy attorney a call and speak to him or her.
Your Social Security income and pension is exempt and cannot be garnished. Your Wal-Mart wages MIGHT be exempt from garnishment as long as it is less than the threshold amount. However, I would recommend speaking to an attorney about your situation as soon as possible. The worst thing you could do would be to do nothing. Although creditors may not be able to collect right now, you might find yourself in circumstances where they could (sudden windfall, inheritance, etc.). Bankruptcy will get rid of the judgment and credit card debt. You should talk with an attorney and see what options are available to you.
