Forums
Mo mother is on a fixed income in the Stae of California. My mother receives SSI and is in debt. Recently she received a summons for a judgment and getting so many phone calls from creditors. My mother would like to settle with creditors but with $400.00 income it is impossible. Should she ignore the creditors or consider bankruptcey?
ssi
Hi mungi,
Welcome to this community :)
As your mother have received a summons, she needs to answer to that within the stipulated time. Else, the creditor will win a default judgment against her. Even if she wants to settle with the creditor, she should answer to the summons.
While settling, she should also request the creditor to stop the court proceedings, and request him to provide a written settlement agreement, mentioning about the court proceedings getting canceled.
If she can negotiate a settlement with the creditors then their's no need to file bankruptcy. Debt settlement does hurt the credit, but bankruptcy hurts your credit all the more. It is better to avoid bankruptcy if possible.
Thanks,
Aaron