One of my friends called me today, very upset about a situation going on with her mother.
I can’t really go into much detail, since I don’t know much. I do know that her father passed away five years ago and there wasn’t any retirement money.
Her mom’s health is failing, she is in her seventies, with no retirement or savings. Her mother nets about $1400 since $400 of it is being garnished by one credit card company. Another is pursuing her for collection.
Last year her mom had $20,000 in debt with this one company that is garnishing her wages and today she opened a piece of mail from the company and the interest has jacked the debt up to $25,000. So although she paid $4800 in monthly payments, she is still $5000 more in debt.
My friend doesn’t know what to do. Her mom is losing her home, the car was already repossessed, and she has these massive credit card debts.
I don’t like the idea of filing bankruptcy. I feel if you charged up all that debt, you should be responsible and pay it off. In my teens I knew a family where one of the adult sons had about twenty credit cards. He still lived at home and they went crazy charging a whole bunch of stuff, then he just filed bankruptcy. I thought it was despicable, and vowed that I would never do such a thing.
But I think my friend’s mother’s case is different. She won’t be able to pay off the debt she’s incurred in her lifetime and if things keep going the way they are now, she could end up homeless. Well, I’m sure my friend would never let things go to that point, but really what can the mother do? She could move in with her daughter, keep working and even if she paid every bit of her paycheck to the debt she probably couldn’t pay it off in the years she has remaining.
The kicker is the mom can’t even afford at this point, to file bankruptcy. I told my friend she may have to find some way to come up with the money to help her mom file bankruptcy.
I don’t see any other solution. This is one case where I have to say I approve of filing bankruptcy. What say you?