My mother, who is 95, has just received notice that a lawsuit is about to be initiated against her by a collection company who took over her Sear's account. She has no property, lives with me and only receives Social Security and a $50.00 pension check. Should I send a letter to the attorney-collection co. stating her only income is from retirement and SS, and that there is no property? What should I do? Should I wait until the lawsuit is filed an respond to the court? Help! Are there any other steps I should take? Thank you!
Call the collection agency and explain the problem. The main thing is to be in contact with the collection agency so they don't consider your mother a deadbeat. They will reduce the amount owed (even by half) if your mother is able to come up with the total they establish.
Otherwise, eventually her SS and pension checks will be garnished.
Take away the credit cards. Nothing more damaging that charging money you don't have and leaving it to the kids to solve for you.
Parents, are you listening?!?
You didn't indicate the amount, but assume it's $5000. Can you and the family scrape up $2000? If so, do it. Call the agency and offer then a onetime settlement as long as they agree IN WRITING that it will settle the debt IN FULL, no recourse. Offer them $1000, let them talk you up to the $2000 and then do it.
Then help your mother put together a budget. This isn't a punishment, a "budget" isn't a negative thing, it's very freeing when you can see in clear numbers what you can do with your income. Insure "fun" is in that budget.
Your first inclination is correct. Your mom is judgment proof. They can't garnish her SS, and hopefully they'll leave her measly pension alone. Send them a letter telling them exactly what you told us. Send the letter certified. If they sue her, then they do. K, then they'll get $50 mo, and everybody keeps on living.
I thought they could -- not as a check, but once it has been added to her account (and then it is just "income").
Someone had mentioned in answer to a similar question that she should cash the SS check (if not a direct deposit) and keep the cash under the mattress or put it into an account that doesn't have her name on it.
Under most state laws, if there ends up being a judgment, your mother can file an exemption declaration with the court about her social security and they cannot attach her funds in a checking account if those are absolutely the only funds she gets. Don't deposit anything but those funds. You can post a letter with her bank to that effect also. In addition, in your answer, use an affirmative defense that she only has income from social security - this will put the collector on notice that most likely they will not be able to enforce a bank garnishment. Check the laws of your state regarding garnishment and exemption certification also.
I guess I neglected to mention my mother has dementia and is legally blind. She stopped using this card years ago, paid faithfully until about 2 years ago when she was unable to continue. I use her money to help with food, medications and supplies we need for her. Being 95, she isn't going to the mall. Lol. She is practically bedfast. She has overcome breast cancer, three aneurysms, a heart attack, etc. and is now deaf and blind. I am considering changing her direct deposit to being mailed. I feel that she has more than paid for any merchandise and that this is mainly fees and interest at at this point. I guess I should write to the CC and explain all this, but I doubt they care.
Get a letter from your mom's doctor stating her condition. Send that to the collection agency along with your letter explaining her financial situation. DO NOT offer to pay anything. If, in the unlikely event they do sue, then you will have time to respond in court and deal with those issues. Remember, this is your mom's debt and it dies with her. You do not owe any part of it, nor should you pay it because that may obligate you.
They cannot garnish her SSI (Wondergirl please note) and if they do sue, you can inform the bank that only exempt SSI payments are deposited in the account so they can't touch it.
An aside to JBeaucaire, Kids do not have to "solve" their parents debts. Only the estate of the debtor is responsible for any debts. If there is no money in the estate as in this case, then the debt is terminiated with the death of the debtor.
They cannot garnish her SSI (Wondergirl please note)
I said that too, but once it becomes part of an account, it no longer is SS or SSI. Further steps would have to be taken to confirm that that amount in the account is indeed SS or SSI money.
Quote:
Originally Posted by excon
They can't garnish her SS
Quote:
Originally Posted by Wondergirl
I thought they could -- not as a check, but once it has been added to her account (and then it is just "income").
Are there any other steps I should take? Thank you!
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