My Mom who is retired and 77 years old is in about 70K in credit card debt. She is current right now, but it won't be long before she is unable to make the minimum payments anylonger. She does own a home with approximately 250K in equity. Should she file chapter 7 to get out from under this debt, or should we attempt to negoiate with the credit card companies for a reduced settlement. I have about 20-25K that I can use to pay off her debt if the credit card companies will settle for 1/3 what is owed. Where would you go from here?
Seriously, you are a long way away from liens. Is your mother on a fixed income? What state is she in?
She lives in California, and she is on Social Security and her pension, approximately $3100 per month.
They are many months away from putting liens on the home, if your going to answer a question, at least have valid advice. Believe me, before lien one goes on that house, I will put a second deed on it that far outweighs any equity that the house has and then forgive the debt in the future.
