Credit card question

[Onmomsbehalf]

What is the name of your state?California

 

[quincy]

More information would be helpful. Thanks.

 

[Onmomsbehalf]

My mom is 80 years old and has a discover card bill that the payment is more than she can afford to pay. Between her prescriptions and her assisted living rent this bill she has no money left. I called discover to try to do a settlement but they don’t offer one. I think her only option is to stop paying the bill. What are her options?

 

[quincy]

What is her source of income?

 

[Onmomsbehalf]

Her social security and my dad's pension, about $1900.00 a month

 

[quincy]

Her social security and my dad's pension, about $1900.00 a month

Your mom’s social security income cannot be garnished and many pension plans are also exempt from collection actions.

 

[Onmomsbehalf]

Ok, so right now she is having the payment automatically withdrawn from her account. So if she stops the automatic payments and doesn't pay anymore she will be ok?

 

[quincy]

Ok, so right now she is having the payment automatically withdrawn from her account. So if she stops the automatic payments and doesn't pay anymore she will be ok?

She could be sued if she stops paying on the debt. She would need to show at that time - or now - that her income is exempt.

 

[LdiJ]

Ok, so right now she is having the payment automatically withdrawn from her account. So if she stops the automatic payments and doesn't pay anymore she will be ok?

She should stop the automatic payment even if she intends to keep paying the bill or a portion of the bill. She needs the flexibility to decide when she makes the payment.

 

[quincy]

I agree that the automatic payments should stop.

 

[Onmomsbehalf]

How do we show that her income is exempt

 

[quincy]

Financial records. Bank deposits. Tax returns.

 

[Taxing Matters]

Financial records. Bank deposits. Tax returns.

I would not provide those records to the credit card company now, and certainly not without good reason to think that the company would actually be willing to settle the amount due if the information was provided. If the creditor sues and gets a judgment, it will simply be unable to attach exempt income and assets. While the judgment might ding her credit record, if her income is low and she can't afford to make even minimum credit card payments then she should not be borrowing anyway in which case the ding on her credit isn't a big deal. With that in mind, I'd be inclined not to give the credit card company any sensitive financial documents.

 

[Onmomsbehalf]

I'm inclined to tell her to stop payment. She gets less money monthly than what it costs for her to stay where she lives. She pays a portion of her monthly bill there and my brother and myself pay the difference. I leave just enough in account to pay for her prescriptions. By the time she pays those when her payment comes out for the discover bill it puts in the negative.

 

[Onmomsbehalf]

You cant squeeze blood out of a turnip