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dallas2030 · Jan 4, 2007, 01:25 PM

Hi, I hope I'm in the right forum. I read around and this seemed to be the pick. If I missed the right forum, I apologize.

I spoke with an elderly aunt of mine this am and she is considering filing bankruptcy on a particular credit card. She's on a fixed income and the interest is killing her! She used it out of desperation, due to medical problems, needing groceries, etc. She'll never get this card paid off - she's 71 y/o!

She had to file back in '98 or '99 - also due to caring for her ailing mother. She isn't going to file on anything, aside from the one credit card.

Was wondering if anyone knows the statute of limitations for the state of Oklahoma since she filed less than 10 years ago. I know the laws have changed a good deal.

Would appreciate any help or info that would be pertinent to her case.

Dallas

ScottGem · Jan 4, 2007, 01:46 PM

You can't file bankruptcy on a single debt. Its either all or nothing.

How is her health? If she can maintain minimum monthly payment, then don't worry about the interest. Once she dies the debt dies with her.

dallas2030 · Jan 4, 2007, 02:06 PM

Her health is failing. She has some sort of incurable lung disease and congestive heart failure... that's the reason she felt she had to use the card - she didn't have the money. Now, she finds out that she's basically dying but who knows when. And in her words: "I wouldn't have used the card if I'd known I was in such bad shape". Of course, she has to buy medication, so I'm sure she's still having to use the card - or I'm guessing that she is. She may not be taking any medication to keep from using the card. She's on a fixed income and it is very minimal.

She was telling me today that the minimum payment on that credit card is $280... so she's making the minimal payment and she's going in the hole. It all seems so wrong because she isn't someone trying to bilk the system and never has been. She's worked all of her life, unfortunately, most of it was with non-profit organizations so she didn't have that much paid into social security.

When she gets the news, it's all or nothing - she may decide to file on everything but I can't see her doing that. She's too responsible to go that route.

Thanks so much for your prompt reply. If you have any further help - it's much appreciated.

ScottGem · Jan 4, 2007, 02:09 PM

She would need to consult a bankruptcy atty before she goes any further.

dallas2030 · Jan 4, 2007, 02:16 PM

I was afraid of that but there again... no moo-la for a lawyer so I don't know where she'll go from here.

Poor folks just don't have a prayer.

Can you tell me if she qualifies to file bankruptcy - given the fact that she filed in '98 or '99?

excon · Jan 4, 2007, 02:51 PM

Hello dallas:

Assuming your mothers income is social security, your mother doesn't have to pay the bill. She's judgment proof. Her social security check cannot be garnished even if she's sued and loses. If she has no other assets, then the credit card company is out of luck and can't touch her.

Being judgment proof is BETTER than bankruptcy because it doesn't cost a nickel to get that way. Being judgment proof is NOT desirable, but it DOES have its advantages.

I bring this up, not so that your mother can welch on her debt. I bring it up so that your mother can speak from a position of knowledge when she negotiates with the credit card company. Armed with the information that the bank can't do anything, she should call them up, and try to negotiate a new interest rate and a new minimum payment.

She won't have any success with the first or maybe even the second person she speaks with -they're clerks. She needs to keep going until she finds someone at the bank who can make a business decision.

When confronted with the facts, the bank is probably not going to cut off its nose to spite its face - although they might. But, at least she tried.

Please tell her to spend her money on her medicine - NOT on the bank.

excon

dallas2030 · Jan 4, 2007, 03:23 PM

Thanks for that info, excon. She's a proud person (not in a bad way) and has never asked for anything from anyone. She's always been the one that helps others. In spite of that, she may be forced to take this advice. (Btw, she's my aunt, but I'd be proud to have her as a mother.)

I've tried to get my aunt to move in with me and my husband, but she won't. She knows that my parents are living with us, to keep them from having to go to a nursing home and she won't do it. I admit that we can't help her financially - we're strapped pretty tight as it is, but I'd be able to help a little more if I could get her closer to me.

Anyway, thanks for all the info and yes, social security is all she gets each month.

dallas2030 · Jan 4, 2007, 03:28 PM

My aunt keeps asking me if she could file bankruptcy, even though I told her she didn't need to... she still wants to know. Anyone know about the statute of limitations in Oklahoma... she won't be happy until I tell her.

Fr_Chuck · Jan 4, 2007, 05:45 PM

The first visit to most bankrutpcy attorneys are free, and they can supply you lots of info

dallas2030 · Jan 4, 2007, 05:47 PM

I just spoke with my aunt and she said that the one credit card is all the debt she has, (but it's very high) so obviously, that's all she would be filing on. I must have misunderstood her - I thought she had other debts.

Also, her nerves are pretty shot from worrying about all of this so her preference is to file so the credit card company will leave her alone. Her brother is loaning her the money and typing up the legal papers but she needs to know if she's within the time lines of being able to file... does anyone have any info on that? I'm trying to save her the money of seeing an attorney.

Thx

Oops! Must've been posting close together. Anyway, thanks for the info - it's appreciated.

RichardBondMan · Jan 4, 2007, 10:12 PM

I read your question and all the answers, ScottGem is correct and it is also my belief you cannot file bankruptcy on just one debt, it's most all debts except, of course, debts for taxes, etc debts like that - also no one has mentioned to you that bankruptcy is NOT a remedy available from any particular State in the US, it's a federal code, not State thus Oklahoma has nothing to do with a federal bankruptcy. I not going to guess if she can file bankruptcy twice. Better ck with a bankruptcy atty on this. You also mentioned a "statute of limitations" a couple of times. Statute of limitations generally refer to a time limit that say for example, a company, like a credit card company, can legally sue the creditor for an unpaid debt. After the state's statute of lmitations expires, the credit card company cannot sue. Here's another example... when it comes to murder, there is no statute of limitations... in other words, the State can place one on trial for murder even after many, many years, no time frame on this offense. Another example might be where you were injured by an at fault person in an auto accident and you didn't attempt to file suit against person until after the statute of lmitations expired. In the last example, the statute of limitations expired and the injured person cannot now sue. If she has no assets, then she has nothing to lose except the credit card company could file a claim against her estate once she has passed, thus reducing the inheritance of heirs. I agree with Excon on this -- once they are aware she has no assets to attach, they may negotiate down the amount of the debt and/or the interest rate. Good luck, I admire her spirt. If more people had her kind of attitude, this world would be a better place. I hate she's in this position -- tell her not to worry, that's easy for me to say, just negotiate the debt/rate down. The card company will gladly take anyone's money but don't offer to pay them --- you would be taking away your Aunt's dignity if someone else paid the debt for her. But it would be great, considering the state of her health, if you or someone could negotiate for her. Good luck to her and you --- you apparently care for her deeply.