Summons from collection agency

What is the name of your state? Washington

First of all let me say I am writing on behalf of my Grandmother. She is 73 years old, and disabled. Her problem is as follows. About a year and a half ago a credit card was opened in her name by a family member. The credit card was maxed out, and my grandmother wasnt aware of the Card until just a few months ago. She wouldnt press charges against the family member, and that puts her in the position of being responsible for the debt. She isnt able to afford any debts such as this. Her only forms of income are Social Security, and V.A. Disability on behalf of her deceased husband.
This last monday, a lawyer served her with papers. The credit card company has contracted them to sue her. The total sum of the suit is $11,878.67. This paper they served her with seems to be only a complaint. It says she has 20 days to respond to them stating her defense. I have done some reading, and I believe she is "judgement proof". Her only forms of income are as I stated above are Social Security, and V.A. Disability on behalf of her deceased husband. She owns a home, but it has a first, and second mortgage. It has no equity available. She is not behind on her current bills.
I guess my question is, if a judgement is placed against her, can they legally take anything from her? Also is there any way for her to prove that she is not responsible for the debt.

Thanks for your help,

[url]http://www.thebankruptcysite.com/exemptions/washington.htm[/url]

I was very displeased to read that she will not pursue a fraud investigation and charge your relative with identity theft. I'm not sure she understands just how bad this relative actually took advantage of her, or else she would be eager to press charges.

Having said that, the link I provided is a list of exempt income. They can also place a lien on the house, even though the loan is upside-down right now. SHe won't be able to sell it without paying off the judgment. If she is judgment proof, that's still going to hang out there on her credit report and prevent her from obtaining credit for 10 years.. and it will also acrue 9% interest.
You should really have the discussion with her again about pressing charges against the relative. Just an opinion.

[Ladynred]

It sounds highly unlikely that they can take anything at all from her. Her income is totally exempt and with no equity in the home there would be no point in them going after it. They could place a lien, but I don't see how they'd gain anything. They can levy bank accounts. I'd make sure a statement gets to the bank immediately for their records stating that all the funds in the account are from exempt sources.

I agree with Kevin (who beat me to this answer.. LOL). Unless she's willing to press charges against the family member who committed this identity fraud (which it is), there's not a whole lot you can do to get her out of this. There has to be a formal fraud complaint with the police to have any validity. I too would urge you to talk to her again about it.

If you need some guidance in filing the Answer to the Complaint, here's a site that offers an example:

[url]http://www.nwjustice.org/docs/205.html[/url]

Do you have a power of attorney ? Can she get to a court date ?
She or a representative really needs to go to court on this one. Otherwise, they win by default and there's no chance at all for a defense. Unless there's some reason she needs more credit, a judgment probably isn't going to affect her all that much.

"I'd make sure a statement gets to the bank immediately for their records stating that all the funds in the account are from exempt sources."

DARN. I keep forgetting to mention that. Etching it into my brain now.

[JETX]

As usual, I take a different view of the 'judgment proof' of this person.

1) She owns a home.
2) Assuming a judgment is rendered against her, the judgment creditor can put a lien on that home. Granted, it is unlikely that the home would be forced into sale, but the lien would still exist.
3) In the future (hopefully long in the future), that home ownership will need to be transferred to someone else (either by sale or estate).
4) At that time, the lien will come due and SOMEONE will have to clear that lien before the property can be sold or transferred.

It is very important that you explain to this person the damage (current and future) that was done by this 'relatives' actions. Simply, this will not go away, nor is she immune to the problems of this debt.

Excellent points.

Spend as much time as you can getting her to authorize action against this relative. I'm not sure how much she cares about all of this, but JETX offered up a good point. What happens when the estate has to be passed along? Does she really want someone who didn't take advantage of her getting stuck with that? She should stick it to this relative NOW.
If you can get her to authorize that, you'll need to get a police report immediately and attach it to your answer to the summons.

I thank you all for the advice. I have tried since I found out to get her to file charges against this person. She doesnt seem to want to budge. I will be sure to get a letter sent to her bank right away stating that all funds in the account are from exempt sources. What about her filing bankruptcy? She has told me that she never plans to get credit again.

Bankruptcy is her choice. It's a valid solution, although dumb because she'll just be enabling your relative to commit fraud. Oh, well.. her choice. So's bankruptcy.

I understand completely about letting him get away with it. I have tried and tried to get her to file charges. I have made sure that this person is no longer able to do anything like this. If she filed for bankruptcy would she be able to exclude things like her 1st and 2nd mortage, and her life inscurance policy?

Here is a link that details what you get to keep:

[url]http://www.thebankruptcysite.com/exemptions/washington.htm[/url]

[JETX]

I just have to add.... bankruptcy is NOT something to be taken lightly, even with an unlikely chance of needing credit in the future. And generally, one can't just 'pick and chose' what to keep and what not to keep. Pretty much up to the court. Also, this process is not cheap, in money or emotions. Finally, I simply cannot recommend this action for someone who is only trying to avoid a single debt.... especially since the debt can be resolved so easily.

Well I wrote to the company who is suing her, and gave her response. Today I got a letter back saying that they will accept $600 a month, and $9786 to pay it off. They said other than that they are still going forward with the lawsuit. This is after I told them that she is 73 and disabled on Social Security and VA Disability. So It seems they are hell bent on suing her. I have been trying to keep most of this stuff away from her, so she doesnt have to stress so much. I have power of attorney right now. I contacted a bankruptcy attorney today to set up a "consult". I also once again pleaded with her to file charges against the person, but she is not going for it. From what was said above a judement against her would haunt her forever. I am sure she would be bothered constantly.

Another way you might put it is "press charges or be haunted for at least 7 years, more if a judgment is obtained."
She's an adult - she'll have to live with the consequences of her actions. This is very unfortuante
I wish her the best. You tried.