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.
I am worried, after reading this thread, about myself. I am 69, unable to work, and living on a very small fixed income, which consists of $999 Social Security (after medicare payment which is supposed to increase significantly in 2014 due to Obamacare!), about $250 (reduced by half for pyament of Medicare supplement) from the state retirement, and an annuity from the federal government for retirement from the Postal Service in the amount of less than $400. I know Social Security if safe from garnishment, but I don't know about the other small government retirement. I don't know how I would get by without what I get now and really worry about the future rising expenses. Good luck with figuring out your grandmother's problems.
Medicare is the program provided by the state to cover medical expenses for up to 80% of the cost for the elderly. Premiums are automatically taken from the social security so you never see that money. That is parts A & B. Part D is the drug benefit which has to be paid separately. Medicaid is a program for those living below the poverty line and it pays for any and all medical expenses for that individual. It can be a bit tricky because some providers do not accept Medicaid It is based on household income and depends on the number of family members living under the same roof it is possible for some very low income seniors to qualify for both programs. Your area office on aging usually has volunteers who can help you understand this.
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.
Also look into law passed this year I think in May but at only be fla they cannot garnish ss acct.
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.