questions & answers

Question: I am sending this for my mother. My dad left her his retirement to her but nothing else. She has about $25,000 in credit card debt (they bought a vehicle using a credit card with a 2% interest)and has an income of about $4,277 including retirement, veterans benefits and ss. Everything was fine until ill health made it impossible for her to live alone. She sold her mobile home, put the $$ in savings and moved into a senior apartment. She has recently moved into a more expensive assisted care living. Her income is enough to pay her rent but we still have to pay her $600 a month credit cards bills that my dad left her with. She only has about $1,100 in saving so either she files for bankrupcy or she just doesn't pay her credits cards anymore. She does use her credit cards so bad credit will not hurt her. I am sure that her current living location will not kick her out as long as she is paying her rent. What will happen if she doesn't pay her credit card bills anymore?

Answer: Regardless of a person's age, defaulting on credit card debt can have troublesome consequences. Apart from unforeseen financial problems and continual debt collection calls and mail, the debt normally passes to a person's estate after death. Negotiating with credit card companies often has positive results, such as lower payments over a longer time period or even reduction of the balances owed. [REFER TO AZLawHelp “Dealing With Debt”. http://www.lawforseniors.org/articles_info.cfm?sc=80&mc=8&articleid=120] Incidentally, bankruptcy filing is neither easy nor free. However, if it is your preference, seek a reputable bankruptcy attorney http://www.azb.uscourts.gov/