Brain Tumor, Unpaid Credit Cards and Summons Received

[WhiteFlag]

What is the name of your state (only U.S. law)? Michigan

My friend had a brain tumor and is on SS disability. He defaulted on approximately $30K in credit card debt. One of the banks is suing him for the balance of $8K. He does not have a job, rents a home and leases an auto. (He can drive to and from places he needs to go but cannot drive anywhere unfamiliar.)

Should he file for bankruptcy or should he just let them win their judgment since he is virtually uncollectible? Finding a lawyer to take his bankruptcy case will be an issue since he has virtually no income. He receives $741 in disability. His rent is $500 a month. His mother used to help him with the credit card bills and most likely she ran up the account as well since he relied on her to take care of the finances. But she passed away a few years ago hence the inability to pay as well as new health issues related to the brain.

I was going to type a response to the summons and file it with the court just to buy some time but should I even bother? Can they collect on his SS or any tax returns he might receive?

Any advice will be greatly appreciated.

WF

 

[quincy]

What is the name of your state (only U.S. law)? Michigan

My friend had a brain tumor and is on SS disability. He defaulted on approximately $30K in credit card debt. One of the banks is suing him for the balance of $8K. He does not have a job, rents a home and leases an auto. (He can drive to and from places he needs to go but cannot drive anywhere unfamiliar.)

Should he file for bankruptcy or should he just let them win their judgment since he is virtually uncollectible? Finding a lawyer to take his bankruptcy case will be an issue since he has virtually no income. He receives $741 in disability. His rent is $500 a month. His mother used to help him with the credit card bills and most likely she ran up the account as well since he relied on her to take care of the finances. But she passed away a few years ago hence the inability to pay as well as new health issues related to the brain.

I was going to type a response to the summons and file it with the court just to buy some time but should I even bother? Can they collect on his SS or any tax returns he might receive?

Any advice will be greatly appreciated.

WF

Unless you are an attorney, you should not type a response to the summons and file it with the court for your friend. In what county in Michigan does your friend reside?

 

[WhiteFlag]

Oakland County.

It's with the 52-1 Court on Grand River in Novi.

ETA: I was going to have him file it pro per.

 

[quincy]

Oakland County.

It's with the 52-1 Court on Grand River in Novi.

ETA: I was going to have him file it pro per.

If your friend needs help answering the complaint, your friend should be speaking with an attorney and getting help from the attorney, not you. The attorney can go over your friend's financial situation and let your friend know what assets can be attached and what will be exempt from collection should there be a judgment against him, or whether bankruptcy is something to consider seriously given the facts.

Your friend can seek help through the Oakland County Bar Association. Have him visit the following website:
http://www.ocba.org/legalassistance-id.28.htm

Again for your friend's information, here is a link to the 52nd District Court:
http://www.oakgov.com/courts/dc52div1/Pages/civil/default.aspx

WhiteFlag, you have created several threads. In September of 2012, you created one titled "Brain Tumor." The questions asked then mirror the questions you are asking now. That thread also concerned a friend who had debt and a brain tumor. Is the friend you are writing about now the same friend you wrote about then?

You were provided advice from forum members at that time - some of it was good, some of it wasn't - but did you consider passing on to your friend any of the advice offered at that time (ie, checking with an attorney about filing a Chapter 7 bankruptcy)?

 

[WhiteFlag]

Yes. I just reworded. It's the same person with the same problem and I had told him MANY times to get advice from an attorney. He keeps insisting that he doesn't have the money for one which he probably doesn't. And now push has come to shove and he was served a summons. I knew this would happen eventually and told him so but, as you know, had a brain tumor and has another benign tumor that is causing issues. He's always had the short term memory problem since the first tumor.

So, when he called me about the summons I told him to CALL AN ATTORNEY! Well, he called THE attorney who is suing him! Sheesh!!! I honestly can't do much more since I'm working 6 days a week. I told him that I'd type up a answer to the complaint but I really don't want to do it. Frustrating. The main thing I need to know is can a judgment be attached to what little he gets from SS.

I want him to file bankruptcy and be done with the headache.

Thanks for your help.

WF

 

[Proserpina]

What is the name of your state (only U.S. law)? Michigan

My friend had a brain tumor and is on SS disability. He defaulted on approximately $30K in credit card debt. One of the banks is suing him for the balance of $8K. He does not have a job, rents a home and leases an auto. (He can drive to and from places he needs to go but cannot drive anywhere unfamiliar.)

Should he file for bankruptcy or should he just let them win their judgment since he is virtually uncollectible? Finding a lawyer to take his bankruptcy case will be an issue since he has virtually no income. He receives $741 in disability. His rent is $500 a month. His mother used to help him with the credit card bills and most likely she ran up the account as well since he relied on her to take care of the finances. But she passed away a few years ago hence the inability to pay as well as new health issues related to the brain.

I was going to type a response to the summons and file it with the court just to buy some time but should I even bother? Can they collect on his SS or any tax returns he might receive?

Any advice will be greatly appreciated.

WF

I'm not even convinced he needs to file bk at this point.

If he's only getting $740, he's on SSI and there is only one circumstance that allows SSI to be "garnished" and that's if there's an over-payment of benefits. If he is on SSDI, that can be garnished for most government-owed debts (federal student loans, child support and the like).

You mention taxes - what's he doing that creates the need for a refund?

 

[Proserpina]

Yes. I just reworded. It's the same person with the same problem and I had told him MANY times to get advice from an attorney. He keeps insisting that he doesn't have the money for one which he probably doesn't. And now push has come to shove and he was served a summons. I knew this would happen eventually and told him so but, as you know, had a brain tumor and has another benign tumor that is causing issues. He's always had the short term memory problem since the first tumor.

So, when he called me about the summons I told him to CALL AN ATTORNEY! Well, he called THE attorney who is suing him! Sheesh!!! I honestly can't do much more since I'm working 6 days a week. I told him that I'd type up a answer to the complaint but I really don't want to do it. Frustrating. The main thing I need to know is can a judgment be attached to what little he gets from SS.

I want him to file bankruptcy and be done with the headache.

Thanks for your help.

WF

No, non, nyet, nein, not at all

(As explained above - we cross-posted)

 

[WhiteFlag]

I'm not even convinced he needs to file bk at this point.

If he's only getting $740, he's on SSI and there is only one circumstance that allows SSI to be "garnished" and that's if there's an over-payment of benefits. If he is on SSDI, that can be garnished for most government-owed debts (federal student loans, child support and the like).

You mention taxes - what's he doing that creates the need for a refund?

Nothing that I know of! I asked him if he'd received a tax refund. He said he got about $800 in 2012 and $500 in 2013.

So you think he shouldn't bother filing Chapter 7? That's what I thought but I just want to be sure.

 

[Proserpina]

Nothing that I know of! I asked him if he'd received a tax refund. He said he got about $800 in 2012 and $500 in 2013.

So you think he shouldn't bother filing Chapter 7? That's what I thought but I just want to be sure.

I just can't really see what benefit it may have short of stopping collection letters.

With that said, SSI is not considered taxable income, and the income triggers are far higher than $740/month.

Have a look here: http://idaresources.acf.hhs.gov/page?pageid=a047000000DggvrAAB

 

[quincy]

... I asked him if he'd received a tax refund. He said he got about $800 in 2012 and $500 in 2013. ...

A creditor can garnish your friend's state income tax refund. The creditor will file a Request and Writ for Garnishment with the court, file the writ with Michigan's Department of Treasury, and serve a copy of the writ on your friend (although your friend could potentially file an objection).

Again, you should not be advising your friend on whether s/he should file for bankruptcy or not. The advice should be coming from an attorney who has had a chance to review your friend's personal finances.

I recommend your friend make use of the Oakland County Bar Association link I provided - click on "Legal Assistance" and then "Legal Aid." There are many resources in the area that your friend can, and should, look into.

 

[Proserpina]

A creditor can garnish your friend's state income tax refund. The creditor will file a Request and Writ for Garnishment with the court, file the writ with Michigan's Department of Treasury, and serve a copy of the writ on your friend (although your friend could potentially file an objection).

Again, you should not be advising your friend on whether s/he should file for bankruptcy or not. The advice should be coming from an attorney who has had a chance to review your friend's personal finances.

I recommend your friend make use of the Oakland County Bar Association link I provided - click on "Legal Assistance" and then "Legal Aid." There are many resources in the area that your friend can, and should, look into.

*facepalm*

Apologies. I live in WA, one of the 7 "no state tax" states.

Mea culpa.

 

[quincy]

... I live in WA, one of the 7 "no state tax" states. ...

Ah. I didn't know that.

My post was mostly to impress on WhiteFlag the importance of him not advising his friend on legal matters or helping his friend answer the complaint.

Although WhiteFlag is operating with the best of intentions, I am sure, the friend has apparently experienced financial difficulties since at least 2012 and, with the current $8,000 lawsuit filed against him, matters appear to be getting worse not better. It is time the friend saw a professional.

There are good resources available to low-income residents in Oakland County and the friend's income should make him eligible for free legal assistance. The friend should be able to find an attorney to handle the complaint and the court action, and/or to file for bankruptcy to eliminate the $30,000 in debt if, after the attorney's review, bankruptcy is determined to be the best course of action. But the friend should act soon to get the help he needs in time.

 

[TigerD]

I'd just add that in 2012 the OP was female: Lorri

https://forum.freeadvice.com/consumer-bankruptcy-2/brain-tumor-583806.html#post3097017

I think the OP isn't advising a friend. I think the OP is simply to embarrassed to admit that "she" needs the help. However, I have only a gut feeling to base that on.

Regardless, the OP has had two years to read up on her problem. I don't think she is taking or conveying advice.

DC

 

[WhiteFlag]

I'd just add that in 2012 the OP was female: Lorri

https://forum.freeadvice.com/consumer-bankruptcy-2/brain-tumor-583806.html#post3097017

I think the OP isn't advising a friend. I think the OP is simply to embarrassed to admit that "she" needs the help. However, I have only a gut feeling to base that on.

Regardless, the OP has had two years to read up on her problem. I don't think she is taking or conveying advice.

DC

No, debt collector. It's not me. I changed gender just so that she doesn't flip out when I show her this thread. She is deeply mortified and I wanted to convey to her that her anonymity is secure. Seriously, she does get wigged out by little things like that even though there's no way anyone would know who she is. Or care. LOL.

I, myself, filed BK in 2005. It was post divorce, completely different circumstances and it was a nightmare. (Long story, bad ex, worse attorney.)

I have been trying to get friend to a lawyer for the past few years now. She's reluctant because she's scared. She relies on me to handle her 'big' issues especially since her mother died.

Thanks for your response. I am advising her to get in touch with legal aid. Initially I simply advised her to stop paying on the credit cards which is what they advised here.

 

[WhiteFlag]

Thank you very much for all your advice!

I am directing friend to Legal Aid. I will let you all know how and when this gets resolved.

WF