Legal Question in Credit and Debt Law in Massachusetts

Re: collecting from elderly

First, it depends on the nature of the debt. Second, it depends on what stage the debt collection is at, and third, it depends not only on her income, but her assets.

Social Security income is exempt from most commercial debt collection (credit cards, personal loans, etc.), but not from SS overpayments, taxes and a few other exceptions.

Her real estate, if she owns any, may be subject to attachment but if she has a homestead declaration that predates the debt, the real estate may be safe from execution and sale.

Her personal assets (bank accounts, CDs, cars, antiques, anything of value) can be seized and sold to satisfy a judgment.

If the debt is disputed, but she failed to respond to legal action so a default judgment was entered, the debt is no longer disputed. She will have to have the default removed and go to trial.

If she had a trial and lost, it is not disputed.

If the creditor is harrassing her, there are both regular and elder abuse regulations that protect her from harrassment, but not from legal debt collection procedures.

If she retains a lawyer, the creditor cannot contact her any longer after she informs the creditor of the name and telephone number of the lawyer. The creditor can still pursue legal collection avenues.

She can file for bankruptcy, Chapter 7 if she meets income limits, Chapter 13 if she does not. Most people who only have SS meet the income limits.