Can creditors sue if the only source of income is Social Security?

Follow
Share

My grandmother owes on a lot of freakin credit cards, plus Verizon is on her about returning DVR boxes, that were already returned, but can't find the receipt to prove it. Verizon can kiss my a** as far as I'm concerned, but she has a good $20k piled up on credit card debt. Can credit card companies, if they are successful in trying to sue her, garnish her Social Security? She has no other assets, I swear.

I WANT Bankruptcy to be an option, but her money is just leaking out of her bank account too quickly to save up for a lawyer. Yes, I've tried to open a separate account, but there's already a bankruptcy on my credit report, so I can't open one, and my grandmother can't open a 2nd account because she just foreclosed on a home :\

There's nothing I can do for her financially, except insuring her cell phone gets paid (as well as insurances)

What the f. I mean, really.

This question has been closed for answers. Ask a New Question.
Find Care & Housing
44

Answers

Show:
1 2 3 4 5
You should pay for an hour of a lawyer's time before you do anything, but from my personal experience, I'd advise taking away her credit cards, then checking to make sure they are all unsecured (they almost always are) and then, STOP PAYING THEM. If your grandmother has only her SS check as income and very little in the bank, the credit card companies send a lot of threatening mail and make a lot of annoying phone calls – all of which you can ignore – and eventually give up.

The credit card companies have no doubt have taken more in interest than your grandmother charged on them to begin with. That's what I discovered when I found out that my father had run up multiple cards. In fact, once someone has a lot owed on cards, opportunistic companies start offering them even more cards with even higher interest rates and more penalties and fees. It's a racket! They knew her income when they offered the cards. They calculated that they could squeeze more interest out of her than what she'd pay on her purchases.

Bankruptcy costs money. If your grandmother has no real estate to protect, why bother.
Helpful Answer (1)
Report

Guessing that is why crazy talk show host attorney says: "Do not confirm the debt".
Helpful Answer (1)
Report

Unless the loan is student or income tax no one should be able to do that. Find an elder atty that volunteers advice thru your local senior citizen agency's. Good luck!
Also look into law passed this year I think in May but at only be fla they cannot garnish ss acct.
Helpful Answer (0)
Report

Thank you all for all your comments. I don't think I have a choice, however I have decided not to do a bankruptcy but to send letters as to my not paying. Then after I am all caught up on medical, dental, etc. Maybe they will settle for a lot less in years to come. I want to pay I just can't stretch it anymore and bring myself medical and dental up to date so I am healthy enough to maybe even get a part time job, but that is not available to me right now due to catch up necessary for health......have a nice day.
Helpful Answer (0)
Report

freqflyer - in the case of the elderly, it was often not a case of unbridled shopping that got them into a credit mess. It's more often struggling to stay ahead of their ordinary expenses; groceries, prescriptions, etc... Credit card companies prey on people in this situation, offering them 'special' credit cards with crazy high rates and lots of fees. During the era of deregulation, they were able to profit from bad debt so they didn't care it you were able to pay or not. They'd make money from you either way.

Before they extend credit, the credit card company asks you how much money you make and how much debt you have. When an elderly person states that they have $20,000+ in debt and they make less than $20,000 per year, and the company still sends them a credit card. Who's to blame when they can't pay?!

Dementia often is at the root of the poor financial decision making. Sometimes, it's one of the first symptoms and it's often not recognized by family members until it's a real mess. I speak from experience.
Helpful Answer (0)
Report

When it comes to bad debt, it's us consumers who are paying for those bad debts with high cost for goods/services. I can understand and sympathize if someone is behind on payment due to unforeseen medical expenses, but those who shop until they drop they created their own worse nightmare.
Helpful Answer (0)
Report

So if. Even 15pcent that's still under 2000 yeah gonna go for it. Thanks
Helpful Answer (0)
Report

In a nut shell, if a business forgives someone a debt of $10,000 then that $10,000 becomes *income* in the eyes of the IRS, if the business reports it as a bad debt..... even though that $10,000 isn't in your wallet you would still need to pay income tax on that amount.
Helpful Answer (0)
Report

Someone sent me a question but it disappeared before I could read..it started may I ask u.... So I am guessing why.? I am 71. Have spent most of my life caregiving, raising 4 kids on my own and dropping everything, moving etc. when parents needed help. My dad passed 1980. My mom passed February 22 4 wks from her 101st bday. So now I'new finalized all.... I looked at my finances and said 'oh my God! I have not taken very good care of myself evidently. I am 70 lbs over weight. I need cataract surg both eyes. I broke my upper partial 1 1/2 yrs ago never replaced. I need knee surgery. eyelid surg not for cosmetic purposes. 7 teeth on top ans8 on bottom none meet to chew. I have 1500 just in dental in past year to save what's left. I need 3000 more for an extraction and 2 partials. March I landed in re with a fib probably from stress ang grief.... I am exhausted and have decided to let 13000 of debt sit of 16000. Pray they can't stop me.... I need health, rest and rehab......
Helpful Answer (0)
Report

You are only taxed on what you earn and not on what you owe.
Helpful Answer (0)
Report

1 2 3 4 5
This question has been closed for answers. Ask a New Question.
Related
Questions