In Debt, Retired and Living on Social Security
My question involves collection proceedings in the State of: Texas
My 75yo mother is being sued for CC debt of $10,000, she's retired living on SS and a part time minimum wage job to help make ends meet. She has a mortgage with no equity and a car. She can't afford a bankruptcy lawyer or any of the fees involved. How should she go about answering his suit?
Tia,
Zeek
Re: In Debt, Retired and Living on Social Security
If you want to know how to handle the defense of a lawsuit without a lawyer, go to the county law library or a law school library and find a practitioner's guide to civil procedure before trial.
Your mother should explore whether she can get legal assistance through an elder law service or legal aid. Start here.
Re: In Debt, Retired and Living on Social Security
Thanks, we're going to look into legal aid, her best bet is probably Bankruptcy, it used to be you could do it yourself, but it doesn't seem that way anymore.
Re: In Debt, Retired and Living on Social Security
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Quoting
zeeg
Thanks, we're going to look into legal aid, her best bet is probably Bankruptcy, it used to be you could do it yourself, but it doesn't seem that way anymore.
There's several things you should consider.
First, if she owns her own home, the best a creditor can do is put a lien on her home. Check into the Homestead laws of TX:
http://www.dallasrelo.com/homestead.html
Check to see if there are bank accounts out there creditors can seize. Also note that SS monies deposited into the bank accounts are exempt from seizure as well.
So if you are going to do some research, it appears your grandma is essentially judgement proof if she does not have large bank accounts laying around which she doesn't. Creditors may try to freeze the checking accounts, so you'll have to be ready to show them that funds in it are exempt funds.
Then, under TX law, current wages are exempt from garnishment. See:
http://boringdetails.wordpress.com/2...ent-texas-law/
Re: In Debt, Retired and Living on Social Security
Thanks SchinFChin, that's good information. Thanks or no thanks to the economy, it wiped out any savings and pensions long before she defaulted on her loan, so she doesn't have to worry about any money in other accounts.