My mother will be 63 this year – she just lost her job and is considering applying for Social Security. The amount she would get will just barely cover living expenses. She is carrying a little under $10000 in credit card debt – half of which as an APR of 31%. I am looking for options for her to relieve some of the debt and provide some light at the end of her tunnel.
What options are out their to reduce that APR. mid 600 credit score. But as stated before she is 63
When people come to see me who are senior citizens, only receiving social security income, and are otherwise exempt from creditors, I tell them they don’t have to do anything regarding their unsecured debt.
Usually, they will not need credit again in the future, so they can basically tell the creditor card companies to forget trying to collect.
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They aren’t judgment proof, but they are collection proof.
Social security income cannot be touched. And if assets are protected based on the state they live in, then the creditor has nothing they can get.
But some clients are not comfortable with letting the phone ring, or telling the creditors to “stick it”. So some of these clients end up filing bankruptcy anyway to get peace of mind.
In your mother’s situation, she might want to take the position that there is nothing you can get from me, so accept $X per month at X% or I won’t pay you anything.
My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.
Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.
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