Legal Question in Credit and Debt Law in New York

My mother needs help. She let my sister-in-law borrow 2 credit cards about a year ago. Mom then tried to refinance her house after she retired back in January. Bank said no because she owed $7,000 on the cards. Now....it's up to $33,000! My sister in law is unable to refinance her house to pay it off. What legal options are available to my mother?


Asked on 8/22/10, 5:35 pm

1 Answer from Attorneys
Carol Ryder Law Office of Carol Ryder PC

Unfortunately, since the CC were in her name, she is responsible. IMMEDIATELY close the accounts, and contact the CC companies and let them know she authorized only $X amt and she cannot afford to pay $33K. They might say too bad or they might pursue the wild spender. Of course, her credit rating may be affected and this may cause family turmoil, as well as massively reduce your mother's credit rating.

See if the deadbeat will do a balance transfer or something for $33K into the holder's account(s) and pay it off. However, I suspect the deadbeat has bad credit and no assets.

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Answered on 8/28/10, 6:46 pm


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