Legal Question in Credit and Debt Law in North Carolina

What you say is not possible. I do not know of any creditor who refuses to work with a debtor. Almost all will settle or make a payment plan. However, there is no law that says a creditor must settle a debt and they a re free to sue if they wish.

So what if they do? If the facts are as you say, Social Security is exempt from garnishment. If there are no assets that exceed the exemptions, then there is nothing a creditor can do but wait. And most creditors will settle, although not necessarily for what your mother is offering.

I suggest that you pass along my contact information to your mother if she in NC. I charge a reasonable fee for a consult to review her assets and discuss her situation with her. If there are no defenses to the lawsuit, my advice would be to NOT fight this in court. I would let judgment enter. When your mother is served with notice of rights and motion to claim exempt property, I will review with her, again for a small fee. In our discussions, we can see what is owed and to whom and I can give her an idea of how much she will need to resolve the debt. That way, she can save up and when she has enough money, I can settle for her at a later time. Please email me at [email protected] if interested.