[arkitkat]

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!:confused: Are there any other steps I should take? Thank you!

[Wondergirl]

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.

[JBeaucaire]

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.

[excon]

Hello ark:

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.

excon

[Wondergirl]

They can't garnish her SS

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.

[Brenok]

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.

[arkitkat]

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.

[arkitkat]

Thanks to all of you for your prompt answers!

[ScottGem]

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.

[Wondergirl]

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.

They can't garnish her SS

I thought they could -- not as a check, but once it has been added to her account (and then it is just "income").

[ScottGem]

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.

That is true, if no advance steps are taken. But the account holder can inform the bank that the account is only used to deposit exempt income. That can forestall the execution of a granishment order against it. So as soon as a suit is bought I would do that, effectively rendering the mom judgement proof.

[arkitkat]

Thank you so much for your answer. I will write to the CC and include a letter from her doctor. Thank you again!

[Brenok]

Ark, one thing some of us have overlooked is - have you just received a summons or has an actual judgment been filed? Is it from a debt collector or the original creditor? If it is just a summons, you can prepare an answer and include affirmative defenses relating to your mom's SSI and her health and other issues. It doesn't mean they won't want her to pay, it just means the puts the debt collector on notice that she might be judgment proof. She has a right to respond to the allegations against her. Also, if it has been a while since she used the cards, the Statute of Limitations for judgments may be up depending upon your state. I know it sounds overwhelming but it might help to look into some of these matters.

If you have time noted in the summons to prepare an answer, I wouldn't write to the CC at all - I would put all the info in the answer. There are lots of wonderful samples on this site and others - I am working on one myself right now. Also, if it is a debt collector, you can ask for them to validate the claim. It is a lot of work involved, but if you want to put up a little fight, you have the right to help your mom with it legally, but be sure to get a durable Power of Attorney signed by her. If you need further info, just send me a private message here. I wish you the best.
Bren

[arkitkat]

All we have received is a letter stating their intent. The letter says it will take about 30 days. We have gotten other letters occasionally, but this is the first one like this. The creditor is Sears, but the account has been sold, apparently, to Gamache and Myers in St. Louis. I think the last letter was about 6 months ago.

[Brenok]

Well, unless someone served her an official summons, she hasn't been served yet, so suit has not been filed. This is a debt collector, not the original CC. I am going through the same thing but I did get a summons. I am working on an answer and sent the scum bag debt collector a notice to validate the claim. If your mom gets gets served, she has some steps she can take to challenge with your help. If she does nothing, she will get a judgment against her. If you need some help, let me know, I can give you some post references here that are helping me tremendously as well as some other websites. I do not claim to be an expert but I have gathered enough information to give you a few ideas if you want to pursue them. You are an angel to take care of your mom. If you don't have a durable Power of Attorney, you need one - I have a sample since I have POA over my disabled son, but it may need modified according to your state laws, etc. I am here if you need some help.

[Wondergirl]

the scum bag debt collector

Why is the debt collector termed a scum bag?

[ScottGem]

Why is the debt collector termed a scum bag?

Many, though not all are. They buy up old charged off debt for pennies on the dollar, then harass people who really can't afford to pay over the debt.

[Wondergirl]

But those people being harassed are the same people who incurred the debt. They had agreed to the terms of the credit card company, including higher interest rates for missed payments and were told in print that came with the new card that any longstanding debt would eventually be sold to a collection agency.

You mentioned "old charged off debt," Scott. Do you mean that the credit card companies were willing to forgive the debt but, in the interest of recouping something, then sold the debt to a collection company?

I work in a public library, and it happens to be in a transient area. People move into town, get a library card, check out books and DVDs, move to another town or state, and take our materials with them. We send out overdue notices. After at least six weeks of no response to notices, we call. If there is still no response or if the number has been disconnected, we send out a bill. After three months of no response, we might give the account to a collection agency. We aren't interested in being reimbursed for the material; we just want our stuff back, so we can return it to the shelves and give others the chance to enjoy it.

**For anyone out there with long overdue library materials, please return them. If you have moved, please return them to a nearby library or even just put them into the dropbox. Libraries just want their stuff back. And if you are willing to pay the fines, return the stuff to the front desk. The fines are never more than the cost of the materials.**

[oneguyinohio]

Wondergirl, some of the debt collectors are "scumbags"

They call up repeatedly making threats and at times resort to name calling and the like. The callers often cause mental anguish to people who may already be suffering from mental problems. I have known of such callers calling back the same person 5 times in a row within a minute of the previous call only to make further harassments.

The scumbags are only after one thing. Money. They don't give a crap about the person they are speaking too. Those callers are only doing it for pay. Anyone who would torment someone like that, without compassion, is nothing more than a SCUM. They might have a life outside of their little phone job, but if they can honestly feel good about their work, then they already know they are being SCUM and don't care.

[arkitkat]

Scum bag, yes. I refuse to talk to them now when they call, which is rarely. But once I told them of my mom's condition and they told me they had many clients in nursing homes. At some point, we need to let it go. My mother lives with me, but she has no quality of life left. When I have people harassing me over this debt, yes, I call them scum bags also. Oneguy is right. It is all about the all mighty dollar. My mother has had this account for probably 40 or more years, always paying on time. She had perfect credit, but life happens.She was an RN and to this day, I meet people on the street in my hometown and they tell me what a difference she made to them while they were in the hospital and how kind and caring she was. Wondergirl, life isn't always black and white. There is a lot of grey also. :)Thank you Scott and Brenok!