I apologize if this is not the correct forum to post this question but I'm hoping someone might have some insight into the problem and advice on what to do.
My father past away in November 2007. He had a Master Card and a Home Depot Card that my mother thought was in both of their names. They carried insurance on the Master Card so when he passed away the balance was paid in full, but they left the account open and raised the credit limit. Since my mother assumed that it was in both of their names she used the card. She managed to accumulate about $9000 and was paying the minimum on time every month. In September 09, the card was declined. She contact the company and they stated that they closed the account because my father was deceased (2 years ago??) When my mother inquired why they didn't leave it open since she was on the account they informed her that she was not a joint account holder just an authorized user. If my mother would have known this she would not have used the card after my father's death.
The Company first demanded payment in full from my father's estate (which has been closed for over 18 months). When my mother explained she did not have the balance in full they offered to open a line of credit in her name and transfer the balance. My mother agreed and sent in the required paperwork.
She just received a letter from them stating that her credit application was denied. It made no mention to the original account. Home Depot made her a verbal offer to settle that account at 50% but they have yet to send an official written offer.
My mother is on Social Security and gets a very small pension from my father's employer (total of about $1000/month). Her house is reversed mortgaged with no equity available.
My questions:
Since the account was in my father's name only, is my mother legally responsible for the debt? She did make charges after his death (thinking she was a joint account holder). She would still be making on time monthly payments but they closed the account to any active. She doesn't have the full amount owed and they have refused to open an account in her name and transfer the balance.
Would the company have to sue her to prove that she made the charges and is responsible for the debt?
Since her only income is SS and a small Pension is she judgement proof? Again the house is reversed mortgage with no equity. She owns a 2001 Saturn (completely paid for) and has less than $1000 in savings. Could the CC company come after the car or the little savings she has?
My mother doesn't want to run away from this debt, but she doesn't have the money to pay the balances in full and the CC company doesn't seem to want to offer her other options other than settlement for a lesser amount- which she still doesn't have.
Any suggestions to what her course of action should be?
My father past away in November 2007. He had a Master Card and a Home Depot Card that my mother thought was in both of their names. They carried insurance on the Master Card so when he passed away the balance was paid in full, but they left the account open and raised the credit limit. Since my mother assumed that it was in both of their names she used the card. She managed to accumulate about $9000 and was paying the minimum on time every month. In September 09, the card was declined. She contact the company and they stated that they closed the account because my father was deceased (2 years ago??) When my mother inquired why they didn't leave it open since she was on the account they informed her that she was not a joint account holder just an authorized user. If my mother would have known this she would not have used the card after my father's death.
The Company first demanded payment in full from my father's estate (which has been closed for over 18 months). When my mother explained she did not have the balance in full they offered to open a line of credit in her name and transfer the balance. My mother agreed and sent in the required paperwork.
She just received a letter from them stating that her credit application was denied. It made no mention to the original account. Home Depot made her a verbal offer to settle that account at 50% but they have yet to send an official written offer.
My mother is on Social Security and gets a very small pension from my father's employer (total of about $1000/month). Her house is reversed mortgaged with no equity available.
My questions:
Since the account was in my father's name only, is my mother legally responsible for the debt? She did make charges after his death (thinking she was a joint account holder). She would still be making on time monthly payments but they closed the account to any active. She doesn't have the full amount owed and they have refused to open an account in her name and transfer the balance.
Would the company have to sue her to prove that she made the charges and is responsible for the debt?
Since her only income is SS and a small Pension is she judgement proof? Again the house is reversed mortgage with no equity. She owns a 2001 Saturn (completely paid for) and has less than $1000 in savings. Could the CC company come after the car or the little savings she has?
My mother doesn't want to run away from this debt, but she doesn't have the money to pay the balances in full and the CC company doesn't seem to want to offer her other options other than settlement for a lesser amount- which she still doesn't have.
Any suggestions to what her course of action should be?
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