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bubbles455 · Sep 24, 2008, 07:12 PM

A family member owes some money to my Mom. Mom is 99 and could sure use the money she loaned out. We have heard that a person can't be sued if they're on SSI. Is this true or do we have any chance in a small claims court or family court to collect on Mom's behalf?

stinawords · Sep 24, 2008, 08:06 PM

You can sue anyone you want (you just won't always win). Does your mom have proof of the debt owed to her? Does your mom have a power of attorney?

bubbles455 · Sep 24, 2008, 08:12 PM

Originally Posted by stinawords

You can sue anyone you want (you just won't always win). Does your mom have proof of the debt owed to her? Does your mom have a power of attorney?

Other family members know of the debt. She does have a power of attorney, which is my brother. The debtor has acknowledged the debt in the past. Will it be thrown out of court being that the debtor is on SSI?

Fr_Chuck · Sep 24, 2008, 09:18 PM

No being on SSI has nothing to do with the right to sue someone, Now they normally can't garnish the SSI check to get their money, but they can get a judgement and if possible get that money that is available by the laws in their state.

bubbles455 · Sep 24, 2008, 10:04 PM

Thanks. I hope this will work. At least it's worth a try. I didn't mention that I'm in Indiana. But I would think that the laws regarding this issue would be the same.

stinawords · Sep 24, 2008, 10:39 PM

I'm in Indiana as well. Do you have any solid proof that the money is owed? Reciepts, a contract, anything in writing at all that can link the money between them? That will prove to be the harder part than the person being in SSI is that with out proof you could be spending money on court costs that she dosen't get anything out of. But the decision is really up to your brother and mom because if she in't able to sue herself, he is the only one that legally can with even a glimmer of winning.

bubbles455 · Sep 25, 2008, 07:13 AM

I don't believe there was an actual contract signed by her. I will ask my brother. The debtor did acknowlege the debt when my brother called her back in 1998 and she has paid either one or two payments. Wouldn't that act as a proof?

ScottGem · Sep 25, 2008, 08:56 AM

First, there is a Statute of Limitations. If this debt stems from a loan in 1998, its likely the SOL has past. The suit would therefore be thrown out because of that.

It would not be thrown out because the debtor is on SSI, but that would make it much harder to collect. Getting a judgement is the easy part, collecting is very difficult. Even if mom wins the suit, the likelihood of getting money from this person is slim.

bubbles455 · Sep 25, 2008, 10:40 AM

Tell me more, please, about this Statute of Limitations. I didn't realize that would be an issue.

this8384 · Sep 25, 2008, 10:56 AM

Statue of limitations is the timeframe in which you are given to file a lawsuit against someone. In Indiana, the SOL is 6 years for oral agreements and 10 years for written contracts.
Indiana Statutes of Limitations

So if the last payment your mother received was in 1998, you're well beyond the SOL and unfortunately, this debt can be dismissed. However, payment on the debt renews the SOL. So if your mother can prove that she received even one cent towards this debt within the last few years, then she can file.

ScottGem · Sep 25, 2008, 10:58 AM

The law provides a limited timeframe during which someone can sue for breach of contract. This timeframe varies by state and type of contract. Generally a loan contract (even if its verbal) would have an SOL of 4-6 years. So if the debt was incurred before 1998 and no payments have been made in the last 6 years, its likely the SOL has expired and she can no longer be sued over this debt.

ScottGem · Sep 25, 2008, 11:00 AM

Originally Posted by this8384

So if the last payment your mother received was in 1998, you're well beyond the SOL and unfortunately, this debt can be dismissed.

That's not quite accurate. A debt can never be dismissed until its paid. However, if the SOL has passed, the ability to sue to collect on that debt has ended.

this8384 · Sep 25, 2008, 11:04 AM

Sorry, I mis-typed :) When I said "dismissed," I meant that the court usually won't hear the case because it's past the SOL.

bubbles455 · Sep 25, 2008, 03:08 PM

Thank you to all who have contributed feedback on our dilemma. You've given me several things to think about and a good starting place. Thanks for the link to Indiana SOL, this8384.

this8384 · Sep 25, 2008, 03:10 PM

Not a problem. As I said earlier, if you can prove the date that the last payment was made, then the SOL starts over again on that date. Example: If a payment was made on 01/01/2005, then the SOL doesn't expire until 01/01/2011 for a verbal agreement or until 01/01/2015 for a written contract.