84 year old woman in over her head

[donna9331]

What is the name of your state? Ohio

My mother is 84 and still trying to work part time. She receives little social security as my father was self employed and died 18 years ago. She has virtually nothing to her name but has two credit cards probably totalling $40,000 on which she's been living to be able to afford to pay her bills. (The groceries, gas, etc. went on the credit cards until they were cut off.)

Would she be a good candidate for a chapter 11 bankruptcy? She has no assets save a $500 savings account and a car in need of hundreds of dollars of repair.

Her job is in jeopardy now because of poor performance. None of us can afford to help her financially...we are at our wits end.

Ideas?

 

[bigun]

If she has no assets and her income is from SS, she shouldn't waste her money on a bk. The SS income is exempt from garnishment.

 

[donna9331]

So what does she do?

Just stop paying her credit card bills? Won't they try and come after her? I've advised her to continue to pay them, although at a much lower amount than they demand, so it would indicate an effort to pay. But there's no way she'll get out from under this debt EVER.

 

[bigun]

So what if they come after her? She has nothing they can take. Just change her phone number or slam caller ID on it and don't answer unless you know who's callimg.
The idea that making less thn the required minimumis somehow showing an effort to pay is just not true. It's no defense in any shape form or fashion. Those few dollars are money down the proverbal rathole.

 

[donna9331]

Thanks

This woman is my mother, neither myself nor my brother can or will dig her out of this (gambling, drinking, smoking)...now her car needs an $1800 repair and rather than allowing her son and soninlaw and grandson to fix it for free (but it's taking a few weeks) she's rather have it towed and "finance" (HAHAHA) the repair.

She has no business on the road anyway...gosh, I don't know how people deal any better with parents like this...especially when they've always been somewhat estranged from them.

Thanks for your advice...it's better advice than I could give her.

 

[ecmst12]

If she has no business driving, there may be a way to alert the DMV to this so they will force her to take a driving test, and take her license if she does not pass. There are community services that will give rides to seniors to the store or doctors etc so she will not be a prisoner in her home. Far preferable to her injuring or killing someone by continuing to drive, and it will lower her expenses for gas, repairs, and insurance.

 

[hrs8o5]

Hi. I'm a Senor Bankruptcy specialist for a large corporation, specializing mostly in Chapter 7 Bankruptcy. According to your question, you asked about Chapter 11. That is mostly for business. What you mean is Chapter 7 filing. Yes, the filing of Chapter 7 will assist your mother in discharging all her debt. especially since being elderly and with hardly any assets. I would suggest to not pay anymore of the credit card debts since that is money that she needs for herself. The credit card companies cannot go after your mom, because she will be protected by the Bankruptcy law and no creditor may attempt to collect without being sued. The only thing is that you would have to pay the fees for a Bankruptcy attorney. There are legal assistance firms that require considerably lesser fees which you may find in Directory assistance. These are mostly assisted by paralegals that know what they are doing and you won't have to pay a larger fee for a Bankruptcy attorney. Your mom can also file Chapter 7 as a Pro Se which means the debtor is representing themselves without an attorney. The court will assist the debtor in that case and the fees are less. The Bankruptcy court always assists the elderly with little assets as your mom no matter what. Now days, because of the Foreclosure problems nationwide, all major financial corporations are more inclined to assist the debtor to avoid Foreclosure, especially if elderly as your mom. That's in case she also owes a home. Mostly at her age, they will just charge off the secured debt if unable to pay even with a very low permanent fixed income rate that most homeowners have been requesting during this time of the mortgage crisis in the U.S.
About her driving, as long as her eyesight is good and has a valid driver's license, I don't see why not. She may use her income to help repair the car if able, but mostly to assist in her own personal common necessities such as utilities and food and forget the credit card payments. There is also Public assistance available for your mother which can help her as a Senior citizen. Good luck and God bless!

 

[nrknlknek]

I think HRS8o5 advice is spot on with one caveat. Because of the dramatic rise in Chapter 7 BK filings, creditors, and credit card companies in particular, are scrutinizing the BK petitions more closely. What they are looking for is any evidence of frauluent transfers of assets. In other words, if your Mother has any assets (sounds like she doesn't...but) like a bank account, car, real estate that she gave to someone in anticipation of filing for bankruptcy, that action(s) could be construed as a fraudulent transfer. The creditor can then file an objection to dischargeability and this then becomes expensive and onerous litigation. So, please make certain she hasn't engaged in any kind of activity that could present this kind of exposure.