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Like to ask for some advise


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A man on Social Security borrowed about $25,000 cash the last few months since August, with two Credit Cards he has.

He's made about 2 or three payments on the one loan, and two on the other.

Yada, Yaya, Yada...

He can not pay the loans now which are way high, payments of like $700 a month.

Should he just go ahead and send $5 or $10 a month which I think he can.

Or should he not bother since I think the CC Co.s would just swamp him in late charges, and a bunch of other charges anyway?

I told him to try at least to make 3 payments. But he can not. :(

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If you go 60-90 days, the CC companies will talk to to you. He may be able to enter their hardhip program. Thi is not a permanent solution, but it is a way to cut payments or interest down to a mangeable size, and buy him some time to figure out what he wants to do.

If his incomce is SS and he hasn't a house or other assets, I'd go BK and be done with it.

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If he's judgment proof, then I'd just let it go to collections and not answer the phone.

I was thinking this too. He does have a house and old car but both are things he can keep in WA State. He has very little.

He is on SSD, so I know his funds can't be garnished. But I was not sure if I should advise not to pay.

Guess I should tell him if he gets a phone to make it unlisted.

Thank you all for the advise. I'll check back now and then to see if anyone else can think of something I am not aware of. (That could be a lot.- Hehe)

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SSD funds cannot be attached. But once they hit a checking or savings account, they could be attacked. You may want to set up a POA account or an account for yourself and let him have signing privelges and have the money go there, so it is disguised and protected that way.

What is a POA?

How could they find out where his checking account is? He never made any payments with that account. It only deposits his SSD, and is used to pay his rent, food,...

Also he has a safety deposit box, can that be in danger? He has some cash for emergencys there. :shock:

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POA = Power Of Attorney

If a judgment is rendered against him they can make him reveal ALL sources of income and assets - that includes the safe deposit box.

If his SSD funds are automatically deposited, they should be protected as it is pretty easy to prove the source of the deposit is untouchable.

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They don't have to know where the checking account is. There are ways for a judgment creditor to find a checking account.

I have always operated under the assumption that SSD money was exempt from garnishment , ie, a creditor can't force the feds to send it teh money instead, but that the $$ was vulnerable once it hit the account. Often, creditor's will not know the money is exempt until you tell them, so watch for restraining notices.

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Thanks Recovering Attorney.

This person is has a personality disorder. The old term is MPD, the new term is DID. So it's quite a task to get the full scope of his problem and various accounts etc...

I am upset that these creditors tempt him, give him credit he can not handle and them zing him when he takes the bait. :evil:

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GhostWriter, If his account is in Washington State I think he may be well protected. I seem to remember a court decision not long ago where a creditor attached funds in an account which had only SSD deposits into it in a Washington State bank. The bank paid through the nose for attaching protected funds and the collector got nailed with a fine also since their records showed his income as only SSD.

Don't count on my memory though, research along those lines. I can't seem to find the original article about the case. Washington State is a very consumer friendly state.

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