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Dad in financial trouble

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Joejoe00

Junior Member
What is the name of your state (only U.S. law)? Pa

Hi, my father is having financial problems...he is 80 years old and lives with my wife and i...he has no assests and his only sourced of income is social security. He is unable to payback his two credit cards : 10,000 and 9,000. Should he just let them go and stop making payments? I read that his social security cannot be garnished because it is protected by federal government. Any advice would help. Thnks
 


Ohiogal

Queen Bee
What is the name of your state (only U.S. law)? Pa

Hi, my father is having financial problems...he is 80 years old and lives with my wife and i...he has no assests and his only sourced of income is social security. He is unable to payback his two credit cards : 10,000 and 9,000. Should he just let them go and stop making payments? I read that his social security cannot be garnished because it is protected by federal government. Any advice would help. Thnks
He needs to file bankruptcy rather than just ignore it.
 

LdiJ

Senior Member
What is the name of your state (only U.S. law)? Pa

Hi, my father is having financial problems...he is 80 years old and lives with my wife and i...he has no assests and his only sourced of income is social security. He is unable to payback his two credit cards : 10,000 and 9,000. Should he just let them go and stop making payments? I read that his social security cannot be garnished because it is protected by federal government. Any advice would help. Thnks
You are correct that Social Security cannot be garnished for consumer debt. Social Security can only be garnished for government debt, student loans, back taxes or child support. The creditors however, will be likely to harass him night and day with phone calls however if he just stops paying. They could also get a judgment against him and perhaps freeze his bank account, however that would only be temporary until he proves that the money in the account came from Social Security payments only.
 

Zigner

Senior Member, Non-Attorney
Problem is he doesnt have the cash to file.
If your 80 year old father has no assets and his only debt is those cards, then I don't think bankruptcy is even needed. As mentioned, he's going to get hounding calls and letters, but those can be ignored. He may get sued, but his money is protected from garnishment/levy, so long as the proper response is made to any attempted action.
 

Joejoe00

Junior Member
If your 80 year old father has no assets and his only debt is those cards, then I don't think bankruptcy is even needed. As mentioned, he's going to get hounding calls and letters, but those can be ignored. He may get sued, but his money is protected from garnishment/levy, so long as the proper response is made to any attempted action.
Would sending letters from attorney to both credit card companies informing them of the situation help?
 

LdiJ

Senior Member
Would sending letters from attorney to both credit card companies informing them of the situation help?
No, it won't make a difference. They will still send/sell them to collection agencies and he will still get harassing phone calls.
 

Zigner

Senior Member, Non-Attorney
Would sending letters from attorney to both credit card companies informing them of the situation help?
Help with what? The creditors expect your dad to pay, as he agreed to do. They're not just going to shrug and say "Meh, keep it." They WILL send it to collections and the collectors WILL be persistent. Short of a bankruptcy filing, no letter from an attorney is going to change that.
 

Joejoe00

Junior Member
Help with what? The creditors expect your dad to pay, as he agreed to do. They're not just going to shrug and say "Meh, keep it." They WILL send it to collections and the collectors WILL be persistent. Short of a bankruptcy filing, no letter from an attorney is going to change that.
If your bills outweigh your income and cant make payments then what do u do? Things happen in life where it sets u back.
 

Zigner

Senior Member, Non-Attorney
Not sure what the best course of action is...bottom line he doesnt have the money to pay for bankrutcy.
You've been presented with two choices and he can't afford one of them.

Please keep in mind that the collectors will be relentless, sneaky, and possibly even break the law in their efforts to collect. Do your best to run interference for him so they don't trick him. Frankly, if the call is from a collector, I'd hang up.
 

Zigner

Senior Member, Non-Attorney
If your bills outweigh your income and cant make payments then what do u do? Things happen in life where it sets u back.
That is true, but that is also not the concern of the creditor. I am sympathetic, I really am. But when you're looking at this (or any) situation, you have to look at it from both sides so that you are better prepared for what is (or may be) to come.
 

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