My Friend is being sued by CC company.

[technoreid1]

My Friend is being sued by CC company. He just got served. He lives with his mother and he is on SSI. HE gets direct deposit into a joint bank account that is in his and his mothers names.

Also his mother is considered by SSI to be his "caretaker" so I think the checks have his mothers name on them because he has been deemed "mentally unstable" by the state.

Just the other day he and his mother closed their joint account down and re-opened a new account only in the mothers name.

He has also cancelled his direct deposit so he will now get paper checks.

He has also transfered their home into the mothers name only.

He is planning on NOT FILING AN ANSWER TO THE summons/complaint.

Can the CC company take anything or get anything from him or his mother in anyway shape or form?

thanks, techno

[HHM]

Probably not...

If the creditor was particularly aggressive and the house had equity, "conceivably" the creditor could attempt to undue the transfer of the house as a fraudulent transfer and place a lien on the home. (BK trustees aren't the only ones with the "look-back" power).

But, I think that is unlikely to happen.

Other than that, the SSI money is exempt so there is not way they can touch that.

[technoreid1]

Yes his house is fully paid off for (or should I say trailer), they live in a senior trailer park. He lives in a 1974 mobile home in a senior park (with his mother)

He is going crazy about this whole thing and is afraid they might come after him for his SSI money and/or his trailer which ARE BOTH NOW now in his mothers name.

Also I am sure SSI money cannot be attached, but thats not to say the CC company could get a default judgment and put a levy on his bank account...
On top of this he owns nothing. And I mean nothing. No Car, No bank account, No nothing....

Please correct me if I am wrong but the bank would not have any say so as to where the funds in his account came from. Or would that be the judges decision when the CC company tries to get a default judgment against him? (he plans not to answer the summons/complaint) Would the court/judge look at my friends situation and see that he is not working and has no other income other than SSI and then NOT GRANT a default judgement?

Do you think he should answer the summons/complaint.... He has been diagnosed with depression/Bi-polar/ --- can he use the excuse in his answer/defense (if he chooses to answer) that
he was in a state of mania and went on a spending rampage.

thanks, techno

Probably not...

If the creditor was particularly aggressive and the house had equity, "conceivably" the creditor could attempt to undue the transfer of the house as a fraudulent transfer and place a lien on the home. (BK trustees aren't the only ones with the "look-back" power).

But, I think that is unlikely to happen.

Other than that, the SSI money is exempt so there is not way they can touch that.

[EveryDayAdam]

The SSI checks can't be touched. There is no way they can garnish those. If he puts them in a bank account in his name, then they can go after it, but you can still fill out the exemption form and get it all back.

Since the mother's name is on the checks, and she is depositing them in to an account that has only her name on it, then they can't touch the money at all.

He is basically judgement proof...and it seems like he will stay that way indefinitely. So, if they get a judgement there isn't much that they can do...Let them pound the sand.

It may be worthwhile to file for BK anyway, then you can have the calls and collection attempts stop. You should have an open & shut case for chapter 7...You'll probably need to wait a little bit of time since the trailer was just transfered in to his mother's name, but once you do that it's easy...It'll cost about $1000, but it might be worth it for the peace & quiet, and absolute legal assurance that you can't be collected on for the debt. It will never go away, when they have a judgement...and they can continue to call you, send letters, etc.

[CindyLou]

He should not be keeping his check in the bank at this time. He should change his check to a paper check, cash the check and give the money to his mother to put in her account in her name only. Once the money hits his account it can be taken and will take much paper work and possiblly an attorney to get back. Even though it is exempt he will have to prove it to get it back.

He should be safe and not keep money in his name. Once he does that he will be judgement proof and he should stop worrying for good! No more credit cards, no more worry. The won't touch the trailer, I'm sure.

I think a BK would be a waste of money time and effort at this point. BTW, how much is the debt?

[technoreid1]

The debt is for about 5k.

Thanks, techno

He should not be keeping his check in the bank at this time. He should change his check to a paper check, cash the check and give the money to his mother to put in her account in her name only. Once the money hits his account it can be taken and will take much paper work and possiblly an attorney to get back. Even though it is exempt he will have to prove it to get it back.

He should be safe and not keep money in his name. Once he does that he will be judgement proof and he should stop worrying for good! No more credit cards, no more worry. The won't touch the trailer, I'm sure.

I think a BK would be a waste of money time and effort at this point. BTW, how much is the debt?