Moore Law Group and Sears Debt

[lauragrim]

CA - My mother is 87 years old and only lives on 1400 in social security. She had a debt with Sears in the amount of about 13K that she stopped paying on about a year ago because it was basically between medical costs and food or paying the payment. She now has a notice from the Moore Law Group sueing her for over 14K. I was told that since she has no assets but an old car, mobile home and social security that we really didn't have to do anything because they had nothing to come after. Does she need to hire a lawyer or what is the step of action does she need to take if any. We figured worst case they would write if off and issue a 1099C.

 

[Taxing Matters]

She may well have no assets for the creditor to attach with whatever judgment it gets. Her Social Security cannot be attached for the debt, and she should make sure she keeps the Social Security in a bank account into which only Social Security is deposited. If her car and home are worth less than the exempt amount for those assets in California the creditor won't get those either.

 

[quincy]

CA - My mother is 87 years old and only lives on 1400 in social security. She had a debt with Sears in the amount of about 13K that she stopped paying on about a year ago because it was basically between medical costs and food or paying the payment. She now has a notice from the Moore Law Group sueing her for over 14K. I was told that since she has no assets but an old car, mobile home and social security that we really didn't have to do anything because they had nothing to come after. Does she need to hire a lawyer or what is the step of action does she need to take if any. We figured worst case they would write if off and issue a 1099C.

What did your mother purchase for $13,000 from Sears?

 

[Taxing Matters]

What did your mother purchase for $13,000 from Sears?

It may not be any one thing but rather a debt on a store credit card on which she bought a number of small things.

 

[quincy]

It may not be any one thing but rather a debt on a store credit card on which she bought a number of small things.

I understand that.

 

[Dandy Don]

This matter will permanently be on her credit report so she should at least make small, affordable monthly payments (can she afford to pay $25.00 per month) until the debt is cleared, and she can negotiate with them for a reduced total amount due.

 

[PayrollHRGuy]

This matter will permanently be on her credit report so she should at least make small, affordable monthly payments (can she afford to pay $25.00 per month) until the debt is cleared, and she can negotiate with them for a reduced total amount due.

What makes you think an 87-year-old woman with virtually no assets cares about her credit report or that a company that is suing her for $14K would accept $25/month or that paying $25/month would remove it from her credit history?

 

[quincy]

This matter will permanently be on her credit report so she should at least make small, affordable monthly payments (can she afford to pay $25.00 per month) until the debt is cleared, and she can negotiate with them for a reduced total amount due.

lauragrim's 87-year-old mom is being sued over the debt because she CANNOT make monthly payments.

In addition, a debt collector does not have to negotiate. A $25 payment on a $13,000 balance is not only unlikely to be acceptable to the debt collector, it would do nothing to eliminate the debt.

The mom, if what lauragrim says is true, is judgment proof. The only assets possibly attachable might be the Sears purchase or purchases - which is why I asked about this - or the car/house if these exceed the exempted amounts. The social security cannot be touched.

 

[xylene]

A mobile home could be quite valuable in CA.

It is best to not assume this will go away on it's own and not ignore any steps in the process.

 

[quincy]

A mobile home could be quite valuable in CA.

It is best to not assume this will go away on it's own and not ignore any steps in the process.

Agreed. If the mom is served with a summons and complaint, she should answer the complaint rather than wait for a default judgment.

I can't tell from what was said if the "notice" the mom received was just a threatening letter from the debt collector or a summons/complaint.

 

[PayrollHRGuy]

A mobile home is likely no more valuable in California than it is anywhere else if she doesn't own the land where it is located.

 

[quincy]

A mobile home is likely no more valuable in California than it is anywhere else if she doesn't own the land where it is located.

There is a lot we don't know.

One thing is fairly certain. An 87-year-old paying $25 a month on a $13,000+ debt is not going to pay off that debt.

 

[paddywakk]

A mobile home is likely no more valuable in California than it is anywhere else if she doesn't own the land where it is located.

Check again. I've seen many used ones for sale for over $100K, and they don't own the land it sits on.

 

[PayrollHRGuy]

Check again. I've seen many used ones for sale for over $100K, and they don't own the land it sits on.

That would be because of the value of the land that it sits on.

Go check prices where they have been moved off of the rental property. I doubt you would see much of a difference.

 

[quincy]

I believe the current homestead exemption in California for those over the age of 65 is $175,000.

I don't know of many mobile homes that would exceed that amount.