What is the name of your state? Delaware
I have to put in a bit of background info first: My brother's only source of income is SSI (since 1990) and his state disability check ($1000 total). He is also mentally "slow".....well enough to live alone, but we found out he got himself into trouble; namely $5000 of credit debt while his income at the time was $9000 a year. He owed Penney's/Monogram Bank about $1800, and paid $1600, but with the 21% interest, still has a balance of $827 that he can't pay. Since at least 2000, he has been constantly delinquent of the debt, making partial payments occasionally, the last one in Nov 2004, but ALWAYS past due.
Last year everyone charged off the remainder of the debt, including Penney's, (he paid $4500 of the $5k initial total debt), but now Wolpoff & Ambramson is suing him for $827 on behalf of Monogram Bank...Penney's is not listed as a plaintiff at all. Obviously, most of the $827 is because of the 21% interest. His hearing is next week (we found out about this late: long story) .
So...what's your take on this? Is there a snowball's chance that the judge can basically say to Monogram, you got back 90% of the debt, let the rest go, or only make my brother pay the $200 balance, not the $627 interest? If the judgement is against him, can they garnish his disabilty? Did the SOL start when he first became delinquent on the debt (5 years ago), or his last payment? How much would he pave to pay per month and at what interest? Sorry, I know, lots of questions!
FYI:, Yes, I could pay this for him, but, it could hurt his reduced rent (Section 8) payments and benefits, AND, frankly I am PO'd that these credit companies gave him so much more credit than he could possibly pay. They know of his disabilities, it's clear when talking to him, and his limited income. He missed payments and still they increased his credit line. They took the risk and they lost, in my opinion. (I know that doesn't count.) And yes, since this all came to light, I have taken over his finances, gotten a POA, etc etc. We just didn't know until it was too late. And, I don't care how badly this will hurt his credit, I actually WANT bad credit so these vultures will leave him alone. Thanks for any answers, I apoliogize for the length.