Credit card debt question

[shanine]

What recourse does a cc co. have when someone is around 80 years old and they can't make their payment (minimum pymt over 200.)?
Can they have their checking account frozen? their very small pension? even smaller social security? There are no assets. Appreciate any advice. thanks:-(

[datasuspect]

1. depends on the state

most states allow for wage garnishment or seizure of bank accounts.

i think federal entitlements are exempt.

how far is the debt cycle? are any creditors suing yet?

[shanine]

2. It's Mass

not over due yet. thanks ds
I will google

[datasuspect]

3. dig this

Debt and Bankruptcy Laws -- Massachusetts
WAGE GARNISHMENT EXEMPTION: $125 per week


MAXIMUM INTEREST RATE: Legal: 6% Judgment: 12% Contract: 12%


STATUTE OF LIMITATIONS ON ENFORCEMENT:


Open account (credit card): 6 years
Contract: 6 years
Domestic Judgment: 20 years
Foreign Judgment: 20 years


Debt Kit includes sample letters and techniques used to negotiate with debt collectors


BAD CHECK LAW DAMAGES: Amount due, plus litigation costs and protest fees plus $100 to $500


BANKRUPTCY PROPERTY EXEMPTIONS (Massachusetts General Laws Annotated):


The State of Massachusetts has exempted the property and income below from seizure by the bankruptcy court to pay creditors. Massachusetts allows you to use either the state exemptions below or the federal exemptions.


Real Estate: Property used as residence up to $100,000; if over 62 years of age or disabled, then up to $200,000 (must officially record homestead declaration before bankruptcy filing) <188-1, 188-1A and 188-2>

Personal Property: Cash or bank deposits to $125, bibles and books up to $200 total, boats, tackle and nets of fisherman up to $500 total <235-34>; burial plots, tombs and church pew, unlimited amount <235-34>; cash for fuel, heat water or light up to $75 per month <235-34>; cash for rent up to $200 per month in lieu of real estate exemption <235-34>; food or cash for food up to $300, furniture up to $3,000, and automobile up to $700 <235-34>; beds, bedding and heating unit, unlimited amount <235-34>; clothing, amount needed <235-34>; tools, implements, fixtures used in business up to $500 total and materials used in business up to $500 total <235-34>; sewing machine to $200 <235-34>; cooperative association shares up to $100 <235-34>; two cows, 12 sheep, 2 swine, and 4 tons of hay <235-34>

Insurance / Annuities: Life insurance annuity contract if contract states it is exempt, unlimited amount <175-125>; fraternal society benefits, unlimited amount <176-22>; disability benefits to $400 per week <175-110A>; group life insurance policy, unlimited amount <175-135>; life insurance policy if beneficiary is married woman, unlimited amount <175-126>; life insurance proceeds if policy prohibits proceeds from being used to pay creditors, unlimited amount <175-119A>; group annuity policy or proceeds, unlimited amount <175-132C>; life or endowment policy, proceeds or cash value, unlimited amount <175-125>; medical malpractice self-insurance, unlimited amount <175F-15>
Pensions / Retirement plans: Private retirement benefits, unlimited amount <32-41>; public employees, unlimited amount <32-19>; retirement benefits, unlimited amt <235-34A and 246-28>; savings bank employees, unlimited amount <168-41 and 168-44>

Public Benefits / Entitlements: Veterans' benefits, unlimited amount <115-5>; workers compensation, unlimited amount <152-47>; aid to families with dependent children, unlimited amount <118-10>; aid to aged and disabled or general public assistance, unlimited amount <235-34>; unemployment compensation, unlimited amount <151A-36>
Wages: Earned but unpaid wages to $125 per week <246-28>; seaman's wages, unlimited amount <246-32(7)>

Miscellaneous: Business partnership property <108A-25>

[Iris]

4. You should check clarkhoward.com. He's a consumer advocate based in Atlanta.

Don't be put off by the fact that he's on the same radio station as Neal Boortz and Sean Hannity.

Also, there are probably agencies that assist the elderly in your state. Like a Council on Aging or something. They often offer free legal services.

You could also try to call the credit card company and negotiate new terms. Or contact a consumer credit counseling organization (but check out Clark Howard's info. on those before you pick one.)


http://clarkhoward.com/

[Darth_Kitten]

5. Can one file a consumer proposal in the U.S. ?

:shrug:

[Gormy Cuss]

6. I think we don't have the equivalent, but there are credit counseling services

and they can suggest ways to negotiate with creditors.
In the OP's case, it sounds like the credit company may be forced to write off a bad debt because the person has negligible assets.

[dajoki]

7. As far as I know...

Social Security can't be touched, but other income and assets can.

[Maineiac]

8. My ex wife buried us in CC debt

and we went to one of those debt management companies. They worked out a plan so that the interest was reduced, we could pay the thing off and we weren't getting called every day. How did this person get so far in the hole?

[cathandler]

9. I used to work for bankruptcy attorneys in Colorado.

What credit card companies don't want you to know is that credit cards are "unsecured" debt. Credit card companies can make one's life hell by calling on the telephone every three days, but there really isn't anything they can do to someone living on Social Security. And by all means, make sure that secured debt is paid -- home mortgages, car loans, etc. -- most of all -- make sure to buy food and pay the utilities. A credit counselor or an attorney, once hired, can make the credit card companies stop calling.