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  1. #1
    Join Date
    Aug 2011
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    3

    Default 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

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
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    98,846

    Default 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.

  3. #3
    Join Date
    Aug 2011
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    3

    Default 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.

  4. #4
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: In Debt, Retired and Living on Social Security

    Quote Quoting zeeg
    View Post
    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/

  5. #5
    Join Date
    Aug 2011
    Posts
    3

    Default 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.

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