Please don’t pass judgement on this.
I incurred significant debt helping my son with his expenditures while I was still employed. I joined a debt relief program because I could no longer afford my credit card bill. Despite my bad credit, I don’t really care at this point in my life. My spouse and I rely only on his social security income; my contributions are used to settle our credit card debt. Although we have paid off our house and car, we do have a reverse mortgage line of credit in both of our names. Can the credit card companies attach this money, I wonder? Should we use some of the funds from our reverse mortgage to decrease the debt relief plan’s repayment time, which is now estimated to be four years?
Credit card payments made with reverse mortgage funds should never be made.
Bank attachments would not take place prior to a judgement, if at all. Many of these individuals receive judgements and bide their time until the debtor requires their credit for some reason.
That is absolutely subject to a lien by the IRS. The legal systems could carry it out. However, I don’t think credit card corporations have that authority until they take legal action.
In your golden years, make the most of your life while you can. To support your love, you have taken out the equity in your house. Make minimum card payments.
Your assets will cover your debts in full upon your death. Whatever remains will be distributed to the people named in your will.
Why would the creditors be pursuing you if you are enrolled in a debt reduction program? They negotiate a reduced debt with your creditors on your behalf, and they take care of the payment portion while you make the payments. But the IRS views the debt they include in this as taxable income, which is why. After it’s ended, you ultimately receive a 1099 for it.
Consult a competent lawyer, as you may be judgment-proof. It might be possible to let them sue without any major consequences.
If your debt settlement plan involves saving money and offering settlements, that’s often a red flag. These plans frequently lead to lawsuits, with the creditor who sues first taking the money you’ve saved.
Social security is protected from non-government creditors, and a portion (or all) of your home equity might be as well. However, turning that equity into cash could remove that protection. Bank accounts can also be levied. A good lawyer can guide you through the best course of action since each state handles judgment exemptions differently. Best of luck—it’s a tough situation.
Why you continued to assist your son rather than teaching him he needed to be independent is beyond me.
You’ve been there for him for so long that he hasn’t learnt how to support himself.
This is far from ideal. Given that you claim you got into this issue by supporting your kid, why would you take out a reverse mortgage? I’m sure he would have preferred a free roof over his head eventually to receive from his parents since you two are so poor with money.