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Ray
Ray, Lawyer
Category: Bankruptcy Law
Satisfied Customers: 38937
Experience:  30 years in civil, probate, real estate, elder law
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My Mom has 35,000 credit card debt she is ill and she has a

Customer Question

My Mom has 35,000 credit card debt she is ill and she has a non qualified annuity of 97,000 I want to know what we should do she can' t afford her cc payments any longer, should we just stop paying them or file BK, we are also applying for Altec (not sure the correct spelling) in AZ which is long term health care program which allows family members to be paid for providing in home care for aging people, will Credit card companies go after her annuity? I need to protect my moms money her health is not good.
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Ray replied 1 year ago.

Hi and welcome to JA. I am Ray and will be the expert helping you today.

The credit card companies cannot go after her annuity unless the terms allow for it.Most annuities cannot pay off sooner.You may want to check with annuity company to verify it cannot be terminated.

She may want to explore Chapter 7 here to se if it works for her and what terms of annuity are in regards ***** ***** termination.Again most annuities cannot be touched0 by the person even for debts.So if that is the case with her annuity then Chapter 7 to discharge the debt may make sense here.

Talking to the annuity company and getting terms of the annuity is a first step.

Lawyer referral for her to see about Chapter 7.

http://www.avvo.com/bankruptcy-debt-lawyer.html

These would be the nest steps to see what is best for her.Thanks again for the chance to help.

Customer: replied 1 year ago.
You did not address if she could just stop paying her credit cards. Which was one of my questions. Are there any repercussions to just stop paying them. Please answers then I will rate the service.
Customer: replied 1 year ago.
Can we just stop paying on the credit cards or do we need to file bk?
Expert:  Ray replied 1 year ago.

Sure if she stops paying here they are likely to sue and get judgment.They cannot touch her social security and she may be judgment proof if she doesn't have anything here.

Expert:  Ray replied 1 year ago.

At this point in her life this might be uncollectible from the creditor.They might just end up writing it off, they might not sue here if they see they aren't going to collect.

Thanks again.

Customer: replied 1 year ago.
Should I contact her credit card companies and explain her situation
Expert:  Ray replied 1 year ago.

Yes I would write them and tell them she is destitute and moving into assisted living and that the debt is uncollectable.Ask them to close out their account and write if off that way.Hopefully they cease the harassment here.You might get them to agree there is nothing to collect against here and move on.

Thanks again.