mother in-law-debt
Date: Fri, 05/08/2009 - 07:43
Collection agencies [CA] and recently attorneys [ per caller id] have been calling her.I have talked to many informed sources including a plaintiffs' lawyer [friend of friend] yesterday who advised to start responding to calls and letters from attorneys.Others have suggested just to ignore everything because there is nothing the lawyers and creditors can "touch" or do to my 75 yr.old mother in law.Her financial situation is as follows:
>Husband deceased for over 8 years
>Receiving social security check monthly
>Has IRA Annuity that disperses money every year for her to live on
>Owns 220k house and has completed Reverse Mortgage [2007] and has drawn money to live on and big portion re-invested in life settlement insurance products gathering interest but no income.
>Receives small misc.income from ex-husbands renewal commissions [he was insurance agent]
>As of last week,my wife [her daughter] and I are now managing her expenses and income.It looks like her expenses exceed income.
>Discover and AMEX just closed her credit accounts where she was current personally because they learned about all this delinquent debt her son created in her name
> She has bank account and debit card that I think is safe from closure and lawyers.
> We dont care about her credit score or restoration
>Her son, who created this debt ,has no money and terrible credit etc
> She has very little discretionary income to settle this debt.
I'm stepping in to help emotionally and help give her the best advice.She is scared to death as so too am I only becasue I dont know process,rights,laws,ramifications of evetually being sued,how to ignore,how to make it go away,how to settle etc
> Finally,if the last resort is settlement, the difference between settled amount and original amout in taxable to my mother-in-law and I dont have the nerve yet to tell he that
PLEASE HELP ME Thanks
hello, i just wanted to say welcome :) you have given a lot of
hello, i just wanted to say welcome :)
you have given a lot of information, which is great but i cannot really help.. :(
perhaps a mod could move this to a different board where it could recieve more attention?
Effectively, your MIL is judgement proof. Texas has very genero
Effectively, your MIL is judgement proof. Texas has very generous exemptions from judgement and since she is drawing SS, they can't touch that. She should still respond to any dunning letter she might recive from CA's and attornies and keep an eye on the Dallas County court websites if any are threatening suit. In Dallas, they like to use the JP Court (I think Judge Al Circone is in cahoots with them, IMHO) but they could file in district court if it significant.
www.dallascounty.org
All CA's and DC Attornies must file a $10k bond with the TX SOS, so check the SOS website and make sure they are bonded:
http://direct.sos.state.tx.us/debtcollectors/DCSearch.asp
Also, read up on Chapter 392 of the Texas Finance Code. She can request debt validation at any time, not just within the 30 day window outlined in the FDCPA:
http://tlo2.tlc.state.tx.us/statutes/docs/FI/content/htm/fi.005.00.000392.00.htm
As I said, exemptions are generous:
Quote:
In general, a debtor may claim exemption of his homestead and certain personal property from attachment and execution of a judgment. A debtor's homestead and one or more lots used for a place of burial of the dead are exempt from seizure for the claims of creditors. (Prop. C. 41.001.) If used for the purposes of an urban home or as a place to exercise a calling or business in the same urban area, the homestead of a family or a single, adult person, not otherwise entitled to a homestead, consists of not more than one acre of land which may be in one or more lots, together with any improvements thereon. (Prop. C. 41.002(a).) If used for the purposes of a rural home, the homestead consists of: (1) for a family, not more than 200 acres, which may be in one or more parcels, with the improvements thereon; or (2) for a single, adult person, not otherwise entitled to a homestead, not more than 100 acres, which may be in one or more parcels, with the improvements thereon. (Prop. C. 41.002(b).) Personal property of a debtor which may be exempt from garnishment, attachment, execution or other seizure may include property having an aggregate fair market value of not more than $60,000, exclusive of liens, security interests, or other encumbrances if it is provided for a family, or an aggregate fair market value of not more than $30,000, exclusive of liens, security interests, or other encumbrances if it is owned by a single adult. (Prop. C. 42.001(a).) These property may include home furnishings, including family heirlooms; provisions for consumption; farming or ranching vehicles and implements; tools, equipment, books, and apparatus, including boats and motor vehicles used in a trade or profession; wearing apparel; jewelry not to exceed 25 percent of the aggregate limitations prescribed by Section 42.001(a); two firearms; athletic and sporting equipment, including bicycles; a two-wheeled, three-wheeled, or four-wheeled motor vehicle for each member of a family or single adult who holds a driver's license or who does not hold a driver's license but who relies on another person to operate the vehicle for the benefit of the nonlicensed person; certain animals and forage on hand for their consumption; household pets; and the present value of any life insurance policy to the extent that a member of the family of the insured or a dependent of a single insured adult claiming the exemption is a beneficiary of the policy. (Prop. C. 42.002.) Other personal property, which may be exempt from seizure, may include current wages for personal services, professionally prescribed health aids of a debtor or a dependent, alimony, support, or separate maintenance received or to be received by the debtor or for the support of his dependent, qualified retirement plan, annuity or account. (Prop. C. 42.0021.) |
For the amount you mentioned, BK might be an option to consider.