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motherskeeper · Mar 4, 2005, 05:12 PM

My 70+ mother has racked up a lot of credit card debt. She has no job, no money, no assets. She lives in my home. She owes more for her car than it's worth. I make the payment's for her. She get's a very small amount of SSI monthly. Other family members have advised her to file bk.
She has called legal aid for an appointment. I can't think of any reason for her to file but maybe there's some valid reason I haven't thought of. Any ideas?

Any Ideas? :confused:

keenu · Mar 5, 2005, 02:43 PM

I suppose YOU want to pay her bills when she passes? Let her file br...
Who will it hurt? No one, who will it help? You.

motherskeeper · Mar 5, 2005, 03:54 PM

Why would I pay off her CC debt?
Ok her credit is wrecked but she has housing, utilities, transportation, vacations, medical care, pocket change.
Cons:
1.) Bk won't improve her credit.
2.) BK won't improve her insurance rating.
3.) She has no estate or assets to attach.
4.) She won't be buying a house.
5.) She won't be looking for a job or going into business.
6.) She's upside down in her car -not going to lose it.
7.) Filing bk may cost her(me) some money.
8.) BK will probably make her feel bad.
Pros:
1.) The CA won't call her anymore.

I know I must be missing the point but what?

keenu · Mar 5, 2005, 04:16 PM

So sorry... I really thought that children were responsible for their parents' debt... I just researched it and found out that, no, they are not. (Well, that's kind of a relief, I don't have to worry about leaving any debt to my kids! LOL)
So...
Yes, so I guess the only thing you would gain would be stopping the creditors' phone calls. I suppose there would be no real reason to file bankruptcy and as you stated, it would make her feel bad, might even precipitate her becoming really ill. Guess it's not such a good idea after all.
Good luck!!
Patty

AtlantaTaxExpert · Mar 7, 2005, 08:18 AM

Regarding the phone calls:

Under the Fair Credit Act (I believe that's the correct name), you can stop the phone calls by telling the collecting agencies to cease and desist with the phone calls.

Next time they call, first get an address (let them think you are going to mail a payment). Do not accept a PO Box as that will be a drop box and correspondence to a drop box will be disgarded (tell them you are going to use FEDEX and FEDEX will not deliver to a PO Box). Once you have the address, tell them that, under the terms of the Fair Credit Act, they are not to call you again at this phone number. Follow it up with a letter (certified mail, return receipt) to the address you just got formally telling them to stop harassing you with the phone calls. Once you have the return receipt, you have laid the groundwork for suing them if they continue to harass you and/or your mother.

Suggest you access www.clarkhoward.com. Clark Howard is a consumer advocate based in Atlanta with a nationally-syndicated talk show. His website is a gold mine of information on many financial issues.

Hope this helps!

Atlanta Tax Expert

motherskeeper · Mar 8, 2005, 02:03 AM

I just found some info on BankruptcyAction.com. It deals with bk reform but says that "current bk laws allow you to get the loan stripped down to the value of the vehicle and you make payments at that rate" Ho details.
My mom is way upside down in her car.
Anyone had any experience with this?

AtlantaTaxExpert · Mar 8, 2005, 07:34 AM

Sorry, my experience with bankruptcy law is limited. You may want to post this question on the Law forum in hopes of getting an answer from a bankruptcy lawyer.

Atlanta Tax Expert

nduen33 · Sep 22, 2009, 10:56 AM

Only reason that she may not wish to file bankruptcy is that she may be what is called judgment proof. Most creditors cannot collect from Social Security benefits. There are a few exceptions such as if you owe taxes and child support. You need to make sure that social security payments are not commingled with any other money in bank accounts.

http://www.socaladvocates.com