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Mom lives in California and on fixed income SSi $500.00 a month. She no longer could pay her payments and has ben sue by Capitol One. She did not respond to summons. Owes Target $8,000.00 and other creditos. Is it best to ignore creditors or file BK?
Hi Mungi1,
Welcome to Credit magic,
It is always a better option to go for BK instead of hiding from creditors.As your mom is old enough (I guess) she may not try for a new big loan.So it is always advised to file a chapter 7 bankruptcy.
Feel free to ask any further query if you have.
Ensure
you can sit down with a non profit credit counseling agency. NOT one of those scams where they promise to cut your debt in half.
http://www.nfcc.org/
this is required by the bankruptcy court and it will help you decide what to do.
Confused on what is best option
Thans for your suggestions. I forgot to mention that mom is on Section Housing through County of Los Angeles ad is afraid if she files BK this will jeopardize herSection 8 assitance. I know Housing randomly checks credit reports but not sure what is the purpose.Thanks.
she should just ask them about it. she is not the only one with debt problems. if they have been checking her credit report then they already know she has money problems.
Confused on what is best option
Thanks again for your suggestions. This makes it easier to decide on what to do. I have seen my mom stressed out and only want to her help her. She wanted to be responsible and make payments to Target but then not pay rest of creditors. I suggestd to her to stop paying Target when in reality only has $500.00 a month to take care of her needs. She already is being sued by Capitol and is scheduled for court in December. Your right as aweful as i souns BK it is probably her best option otherwise they will continue to harass her at home with phone calls. Creditors are even calling me too. Thanks again.