71 year old mother buried in debt

Hi all, I am going to try and help her settle the following accounts
From reading threads here I can expect to settle these at:
120-180 days
Chase (4 accounts) 23,700 20-25%
Citibank (2) 20,000 20%-30%
American Express 24,000 30%
Pottary Barn 1,500 ?
Sears 2,000 ?
Cap One 3,000 ?

Do not plan on any phone communication until receive settlement offers in mail/email.

9 Answers

Be patient - your mother's creditors will eventually settle. But, don't always believe the percentages you see online. Banks change their guidelines all the time. For a very long time Bank of America was accepting 15% of the balance, and then they made a change and wouldn't go below 20%. It happens constantly in the credit card industry.

If you don't receive settlement offers from the creditors, you can call them when the accounts are 150-180 days delinquent to see what they can do for you. If you don't reach what you consider to be "good" settlement agreements, it's perfectly okay to wait until the accounts are transferred to a collection agency.

Good luck!

Marie Megge


Check your state's "debtor exemptions" laws

google( Your State "name DEBTOR EXEMPTIONS"


Debtor Exemptions per above will tell you what other exemptions you are entitled to claim.

I don't mind talking to the CC's. They won't intimidate me since I'm the one with the money...

GO very quickly to your local Credit Counseling Service Center in your area. The payments may have to be late, but they can negotiate a payment plan with the Companies.

You didn\'t say how she got into this mess, but you are noble in trying to help her, although I am not so sure this can be done in 6 mths and if her only income is soc sec, she may want to consider bankruptcy just to get out of the situation.
Good luck to you both...

71 and on social security but owns house...so plan is to send email or call at 90 day mark...

You should be at least 90 days past due. We were able to get Sears to drop my mother's account because she was 83 and on social security - didn't own any property. If your Mom's situation is the same, you should tell them she can't afford to pay them.

If not, then you'll have to negotiate a settlement.

While I emailed them all offering 30-35% on March 9 but will lower offer after deliquency...they all rejected by email. Since they are only a little past due that is not surprising. Based on what I read here they really won't consider offers until at least 90-120 days past due. When should I initiate another offer??

They will not negotiate thru the mail. You would need to call to negotiate any settlement... then get the settlement offer faxed to you. Citi, Cap One and AMEX are very agressive...they are the ones most likely to sue.

How to Deal with Illegal Loans..OhioGal's Primer
PDL's are ILLEGAL in the following states...
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states

If you do not initiate settlement talks with them, they will eventually be turned over to a collection agency or to an attorney for legal proceedings. Should your Mother own a house, they could put a lien against it. If your Mother's sole source of income is social security, then they wouldn't be able to garnish it.

Just wanted to advise you if you ignore calls.

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