Debt And The Elderly
Posted on July 1, 2009 at 2:00 am
I am concerned about my grandmother. Each time I visit, her fridge is empty, there's hardly enough food anywhere, and I suspect that she skips on medication too. I asked her about it and she said that she's paying credit card debts. Is there not any government provision on debts and the senior citizen?
Posted on July 1, 2009 at 2:06 am
I'm guessing that her only source of income is her Social Security? If you can convince your grandmother to seek legal help (file bankruptcy perhaps?) instead of using up her retirement income on paying off credit card debts (that are not going to go away anytime soon). She's probably using up more than 80% of her retirement income on paying off bills--because of her moral values.
Posted on July 1, 2009 at 2:22 am
I read somewhere that most elderly are judgment proof, meaning all that they have is protected by the law- if for example, she defaults on her payments, to the point that her debt is sold to scavenger collection agencies--and they serve a lawsuit, they are not going to get what they want.
Posted on July 1, 2009 at 2:25 am
I agree with them, senior citizens are protected by exemptions. I wonder if you can convince your grandmother to try settling her debts. It's probably not such a good idea to have her talk to the creditors herself, so you may have to take over the negotiation. You can ask the creditors about their hardship program.
Posted on July 1, 2009 at 2:29 am
They are judgment proof? That's a relief! ...What is judgment proof? And I hardly know anything with regards to her finances-I'm a minor...would the credit card people deal with me?
Posted on July 1, 2009 at 2:36 am
You are a minor? Oh I don't know if the credit card companies are going to talk to you--isn't there anyone else? Your parents perhaps? Ask them if they could help your grandmother enroll in credit counseling or debt settlement.
And a judgment is a court order that authorizes: 1) banks (if your grandmother has savings) to withdraw money from an account to pay the creditors 2) employers (for employed people) to take out a portion of the salary to pay the creditors 3) lenders (for those with land/home related properties) to put a lien (a right) on the debtor's property.
They do not apply to your grandmother.
Posted on July 1, 2009 at 2:40 am
Okay I will ask them about credit counseling and debt settlement...although you can also tell me..
And what is a hardship program?
Posted on July 1, 2009 at 2:45 am
Hi Wandering Albatross, a hardship program is basically the creditors willingness to negotiate the consumer's debt. That program differs from creditor to creditor and getting them to say yes, on proposals like: freezing or lowering the interest rates, extending the payment period and lowering the monthly amount, even cutting the amount of debt to half--might depend on the debtor's payment history with them.
Posted on July 1, 2009 at 3:04 am
I am curious about your grandfather, by the way you leave him out of the conversation, is it safe to assume that he has passed away? If so, your grandmother may also be receiving his Social Security...
Posted on July 1, 2009 at 3:38 am
Uh..I do not know about that..I haven't really met my grandfather. Anyway, can you give some advice on how to help her live better, she's alone..
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