[jcfeucht]

When my father passed away in 1996, he left my mother with significant debt - near $120K. They had no savings, no investments but just a paid house which she sold and applied to the debt. I had been assisting them for 20 years prior with money each month (due to the fact that my father was handicapped and unable to work; huge medical bills, etc.) but was unaware of the magnitude of their debt. My mother moved in with me and I have been supporting her and paying down the remainder of the debt for the last 11 years.

There is still $25K remaining in her name from about 5 credit card accounts. I have recently lost my job and while I have found 2 part time jobs - my income has been sorely compromised. I have spoken to my attorney and to 2 financial planners - all 3 of whom have told me to default on my mother's debt. Their comments are that since she lives with me, owns nothing, is the age she is (82) and has only $600 month social security that "they" can't do anything to her if she just stops paying the bills. There is no money for her to file bankruptcy.

Instead of taking this advice immediately, I contacted her creditors - on more than one occasion to try to work out payment arrangements. None will talk to me - I am not the cardholder and my mother is no longer able to handle her own financial affairs. While I have Power of Attorney, my own personal attorney advised me strongly not to put my name on anything that has to do with her debt. I am not looking to walk away from the debt (as I was advised to do) but rather to try to work out something with the creditors but they won't work with me. One finally told me that until the accounts would be 6 or more months in arrears that NO credit card company will even think of working with me.

Any advice? What happens if I stop paying the bills for 6 months - certainly the creditors are going to continue to apply late fees and raise the rates even more? Can they tap into her checking account and take the social security check if she doesn't pay for 6 months? Thanks for any advice.

[Loan_Guy]

Well... since no one answered this yet, I'm going to take a stab at it.

First, you are a saint! To have helped Mom out all those years with the payments (when you may not have had to), you deserve a holiday named after you.

Second, I have to agree with the previous opinions you got. Look at it this way. Here's a likely scenario.

• You don't pay the bills.

• They start calling and asking for payment, so you write them a letter telling them not to call you, that you will only accept correspondence through the mail.

• Several months from now, they may or may not try to get a court judgment. If they do try, do you think any court will garnish the $600 social security check of an 82 year young lady?

Talk with your attorney, but I would recommend against having a joint checking account. Just in case they get you in their sights.

Again... talk to your attorney, but I agree.

LG

[jcfeucht]

Thank you so much, Loan Guy, for the response and for your advice on this matter. I do appreciate it.

Jc