my 72 yr old mother has a lot of debt

[debtisbadnews]

My 72 year old mother has about $15,000 in CC debt. I got her signed up for a Credit Counseling agency called Greenpath, seems to be going well. She has been with them for over a year now. She never has any money, she and my dad live on a fixed income of just SSI. Their retirement accounts have run out. My dad knows nothing about this debt, he would have a heart attack! He never uses credit cards and doesnt believe in them. What are my options for helping my mom? Thank you in advance.

[Denita]

Have you reviewed the actual payments made by your Mother and what is being paid to Greenpath? Generally speaking, there are large fees for these "non-profit" type organizations that are taken out before any payments are made to the creditors.

I am not a fan of using one of those agencies at all...most of them are scams. They are mostly designed to fail. If you search Greenpath complaints or reviews you will see they are designed pretty much to set the person up so they have to go through their own BK dept (at great additional expense to the consumer). You/she can work out hardship plans with each of the creditors so that funds paid go to the actual creditor without a large fee being paid to the middle man (in this case Greenpath).

The most important step is to find out WHY these accounts were opened. Have you spoken to your Mother about why the accounts exist in the first place? In other words, did she open up cc's to supplement their food and medical budget or to supplement a lifestyle? This makes a difference as to your next step. First find the reason behind the additional accounts, especially since she opened these without her husband's knowlege.

If the accounts were opened to supplement food and medicine the problem may be larger than just cc debt. Hopefully you can get this info to cure the entire issue. Naturally, if its a lifestyle issue its a little easier to fix.

[Coltfan1972]

I agree with Denita. I'd throw in it sounds like your mom might be judgement proof anyway. In other words, what are the creditors really going to do with a 72 years old that can't pay their cc debt and is judgement proof.

Sounds like there could be some flushing of money down the toilet at this point.

[BV80]

Originally Posted by Coltfan1972

I agree with Denita. I'd throw in it sounds like your mom might be judgement proof anyway. In other words, what are the creditors really going to do with a 72 years old that can't pay their cc debt and is judgement proof.

Sounds like there could be some flushing of money down the toilet at this point.

I'd be careful. If the OP's parents own their home and have equity in it, a creditor could sue, obtain a judgment, and try to force them to sell.

[Seadragon]

The problem is the credit repair companies tend to allow the one spouse to hide the fact away from the other spouse.

I believe that Coltfan is correct at this point firing the credit repair people and getting the AG involved is going to go alot better than the slow spiral down.

eventually the debt collectors are going to sue the OP's mother either because the credit repair people have backed them into a corner, or the statute of limitation looms.

Lets face the facts 15K in debt spread out over 5-8 cards means a lower risk of litigation than 1 card for 15K.

how many calls have they recieved that are violations and the credit repair doesn't keep track.

getting a credit repair company to hide credit over extension is a slippery slope eventually they all find out.

[nascar]

Originally Posted by BV80

I'd be careful. If the OP's parents own their home and have equity in it, a creditor could sue, obtain a judgment, and try to force them to sell.

Good point. Does anyone know the homestead exemption in Iowa? I think it's similar to Florida in that the entire homestead is exempt, but not sure.

[BV80]

Originally Posted by nascar

Good point. Does anyone know the homestead exemption in Iowa? I think it's similar to Florida in that the entire homestead is exempt, but not sure.

561.16 Exemption.

The homestead of every person is exempt from judicial sale where there is no special declaration of statute to the contrary. Persons who reside together as a single household unit are entitled to claim in the aggregate only one homestead to be exempt from judicial sale. A single person may claim only one homestead to be exempt from judicial sale. For purposes of this section, “household unit” means all persons of whatever ages, whether or not related, who habitually reside together in the same household as a group.

That should be a relief to the OP.

Despite the fact that it appears the OP's parents are probably judgment proof, he stated his father knows nothing about his mother's debt. If she were to stop paying, it would be a gamble as to whether or not his father might one day answer the door and have a summons handed to him.

[Torden]

Is the option of loaning your mother the $15k something you could do?

[mooredb]

Yeah that sounds like your best option.

[willingtocope]

Just out of curiosity, DebtIsBadNews....is there a mortgage on their property? Is it in both of their names?

[Lurlineme]

Oh my your problem is such a pain. However, there is always a way to solve that- either help her fix the bad credit the do-it yourself process of the other way around. The middle men would certainly have their share of profit, that's a sad fact. But you can always take something positive out from it. You just be careful.

[Seadragon]

could form a strategy for debt reduction like this

CC1 (biggest interest rate) - big payment to get the balance down, send a letter to the debt repair company that you are not happy with the progress and please send a report of all accounts, contact dates with creditors, a full accounting of the repayments to date, copies of any correspondence sent and any call notes to creditors.

CC2(next biggest interest rate) Minimum payment with an extra minimum payment every other month.

CC3(next biggest interest rate) Minimum payment with an extra minimum payment every other month on opposite months from CC2.

all other CC's minimums

If you want you can make the extra payment for your mom as needed that would help. I ate PBJ's for a whole year at lunch to help my mom keep her lights, heat and food going I know it is tough on children in your situation to help but those extra minimum payments work.

Back to the debt repair company. Request their payment plan particulars. If they are a good company they will not mind.

Think about getting your mom to allow you to recieve the billing at your place so the CC companies do not send letters to the house, also since if the debt company doesn't mind you could also if you have any other siblings make extra payments on the other CC minimums instead of getting tschokees If your other siblings don't know then there are other ways.

My mom knits scarves and hats and mittens and sells them for 30 bucks for a set(they are nice she makes them on a loom that you can get at a craft store KB brand 10" appprox.$19-25 dollars they are on sale right now and yarn initial investment roughly 10 dollars for a couple colors(this can also be a way of siblings supporting the repayment without them knowing by them gifting knitting supplies)) she then uses the money to pay down the CC payments. So the knitting becomes a cover for repayment of the debts. also it is "unreported" anywhere important and won't affect the SSI.

So think about those options. and for the record knitting on a loom is fun I learned and found it has lowered my stress level(and I am a guy a manly man but not a man in tights) so think about these seriously.

[emmabail]

You can suggest her to file a bankruptcy its a best legal way to get some relief from this worst financial conditions.

[workingpoor]

I guess the OP didn't care for any of the suggestions....

[tinimic]

Originally Posted by debtisbadnews

What are my options for helping my mom? Thank you in advance.

There have been a number of GOOD options presented. Further elaboration on any option awaits your response.