Expert: Jason Shear, Esq. - 10/2/2008

Question
My elderly mother in law has 3 credit cards that she has not been paying.  She is on a very limited Retirement and Social Security which barely pays her utilities, food and medications.  She has been ill and cannot pay these bills and I am not in a situation to help her.  Can these credit card companies seize her bank account which her retirement and social security are automatically deposited. She lives in Texas.

Answer
Nora:

Hope all is well, sorry to hear your mother has to deal with this stress while she is ill.  The credit card companies can not just seize her bank account.  They would have to get a judgment against her from the courts.  If in the future there is a judgment against your mother, her income that is derived from Social Security can not be attached by creditors.  I am not sure specifically the other retirement you are referring to.  Texas may have different laws regarding which other retirement sources are exempt.  In NY most retirement sources such as 401K plans and IRA funds are exempt and TX is a much more consumer/debtor friendlier state then NY.  

If her creditors get a judgment against your mother, my advice would be for her to keep one account for direct deposit for the Social Security funds and another in your name for the other income or savings.

If these three credit cards have been turned over to outside collection agencies or sold to debt buyers, look at their actions to see if they have violated the FDCPA, as you might be entitled to money damages.  To get an idea about what might constitute FDCPA violations, take a look at some of my other posts on this site as well as other websites that explain the FDCPA which is a law that protects consumers such as your mother.  

Good luck, hope this was helpful.   If you have any other follow up questions please do not hesitate to ask.

Jason Shear
NY Consumer Attorney
(716) 566-8988