Please help my MIL!

[Snowey]

What is the name of your state?What is the name of your state?missouri
Hi ,I live in louisiana and my MIL lives in MO.
I have posted help for her before.
She is being sued by capital one and everyone claims in MO. that the SOL for CC's is 10 years.(does anyone have any case law to prove SOL is 5 years)they are claiming breach of contract.
We really do not know what happened but on her CR there are 4 more CC's waiting to sue her,she is 75 years old and owns her house worth about $60,000.
we are trying to find out if she can file chapter 13 so she can keep her house.
my MIL's income is only $1000 a month.
I have heard with chapter 13 they go by your income to find out what she would have to pay back.Is this correct?
My SIL talked to a MO. lawyer today and said that she would have to pay back a lot,more than she could afford.Is this correct?
it is unsecured CC debt ,probably around $78,000 that is with interest over 5 years
I read on the MO.bankruptcy site that with unsecured debt you could pay back .10 on the dollar.
Please we need your advice, her capital one lawsuit is Sept.12,2005.we cannot find any lawyers to help.

 

[bigun]

Your MIL is in a tough spot for a bk if, that $60K figure is the equity in the home. Mo. only exempts $15K worth of equity.

http://www.thebankruptcysite.com/bankruptcy-exemptions/missouri.php

The problem with a Chapter 13 is, a creditor can't receive less than if the petitioner had filed a Chapter 7.
What sort of payback was the lawyer suggesting? {Percentage wise}.

 

[Ladynred]

Her total income is $1000/mo but what is LEFT OVER after she pays all her normal living expenses ?? THAT is what would determine payments in a CH 13 or going with Ch 7. CH 7 would be tough if her house is paid for. Is the house deeded solely in her name ??

Have you checked into doing a reverse mortgage on her home ??? That would kill the equity and keep it out of the hands of judgment creditors. If her only income is Social Security, disaibility, pensions and the like, her income is untouchable by a judgment creditor.

 

[Snowey]

thanks for your replies!
I really do not know what kind of payback he was suggesting but he made it sound like$ 500 to $700 a month.
I did read they go by what you have leftover after expenses, so I was hoping she could pay around $130 a month for 3 or 5 years.It would get rid of all the lawsuits and CA's.
The house is deeded in her name.and I do not know what a reverse mortgage is.
I did read on the MO. bankruptcy site that unsecured debt usually is not all paid back(13) ,but the lawyer that talked to my SIL made it sound like she had to pay it all back.we are not having any luck with these MO. lawyers.

 

[Ladynred]

Here's some info from AARP on reverse mortgages:

http://www.aarp.org/money/revmort/

A Ch 13 repayment plan would be based solely on her disposable income. Its very doubtful she would be forced to pay off 100%, she probably doesn't have any way to support a plan like that. Minimum payback on unsecured is something like 5%, though I've heard of 1 & 2% plans. Definitely look for another lawyer, just keep calling. NONE of them can be even close to accurate w/o seeing her financial situation in some detail.

 

[Snowey]

Thank You Ladynred!
You are awesome!

 

[Snowey]

Hi!
just an update to let you know that I did talk to a very nice consumer lawyer.
he told me that MO. is NOT very consumer friendly.so if my MIL filed for 13 she would have to pay back the difference between the home exemption($15,000)and what her house is worth(probably $50,000).so she would have to pay back $35,000 in 3 to 5 years
MO. needs help!!
I found out that if you sign a CC application, that it is considered a written account and the SOL for this type of CC is 10 years in MO.
This lawyer suggested that I write to the State Representatives and explain my MIL's situation(she has early Alzheimers,she does not know anything about all 5 CCs that were charged in 1999.it could be identity theft we do not know.)
The good news is that he said he would take this case for her against capital one ,they do have some violations of the FDCPA.
Thank ya'll for your advice!

 

[Ladynred]

Is her house paid off, does she own it free and clear or does she have a mortgage ??

What I THINK the lawyer is talking about here is redeeming the equity in her house if she owns it free and clear. Secured debt, if there is a mortgage, must be paid back at 100%, but that doesn't necessarily mean all of the mortgage would be paid off in 5 years. Anything left at the end of the plan survives the bankruptcy.

Credit cards are NOT written contracts, the lawyer needs to read the Truth in Lending Act which clearly defines credit cards as open-ended agreements, NOT written contracts. Unfortunately, even with that some judges won't uphold the shorter SOL, but I'd give it a shot.

Since this COULD be an Identity theft issue, you need to get help in making Crap1 cough up the proof that these debts are, in fact, your MIL's responsibility.

 

[Snowey]

she does own her house free and clear and that is the problem.
We tried talking to alot of lawyers about the SOL issue ,MO. is completly different
the lawyer did say the same thing that cap.one has to show proof that she made those charges,so hopefully he will take care of it.
thanks