Legal Question in Credit and Debt Law in Pennsylvania
My mother is 83 years old and just had a stroke and is very hard of hearing. She owes money to Sears (Citibank) for around $8,000. She stopped paying January 2011 because it was either pay the credit card or don't eat. She is from Pennsylvania. I sent Sears a Cease and Assist to stop calling her and either call me or send correspondence to me ( I am from North Carolina). I sent them a Power of Attorney and they accepted it. They gave her an option to make a payoff of approx. $3,500.00 by a certain date. She is not able to pay that either. I offered them $1,000 out of my own pocket to settle. They never got back with me. This August I received a letter stating if I don't respond for my mother within 30 days they will pursue a Judgement against my mother. Is it correct that an attorney from North Carolina contact me when my mother is from Pennsylvania. I am not liable for the bill and was told that by Sears. Shouldn't it go through an attorney from Pennsylvania? Also, can they do anything to collect the debt since it is unsecured? Please give me some advice as to what I should be doing to help my mother.
1 Answer from Attorneys
I don't understand what you received. Was it a lawsuit? Or merely a letter?
Citi is well withing their rights to sue if they have a mind to do so. However, they should be suing in Pennsylvania if that is where she lives not North Carolina. If they try and sue in North Carolina, you can hire a lawyer and object to the legal action here.
Given your mother's age and circumstances, I would not worry too much about paying, but it depends on the assets that your mother has.
I am admitted in both Pennsylvania and North Carolina and may be able to assist your mother, for a reasonable fee. I would need to see the documents however.
In answer to your question, since the debt is unsecured, the answer is that the creditor first has to get a judgment against your mother before they can take action. After judgment, there is not much they can do in either Nor Carolina or Pennsylvania, depending on what assets your mother has. I assume that your mother gets Social Security or retirement benefits. This is all exempt from garnishment or levy. Any judgment would constitute a lien on any real property, but if they sue in North Carolina and your mother has no funds or other property in North Carolina, the judgment is virtually meaningless. Pennsylvania has no homestead exemption (unlike North Carolina) and it depends if your mother owns land and whether it is owned free and clear or is mortgaged.
If you do not want to hire an attorney, I would write a letter to the North Carolina attorney and send it certified. You are not personally liable for your mother's debt and quit making offers to settle out of your funds. The creditor does not need to know. Tell the lawyer that you are POA for your mother and provide another copy. Explain that your mother lives in Pennsylvania, not North Carolina. Explain that while you live in North Carolina, you are not personally liable for your mother's debts.
If you want to resolve this, explain that your mother is 83 and has no assets (if this is true) or little assets. Offer to settle outside of court for 20% of the debt. Can you afford to pay this at once? If so, they may go for it. If not, how much could you make as a down payment and how much could your mother afford to pay on the rest?
See if you could still pay 20%, but pay some down and the rest over 1-6 pays. Make this offer and see if Citi will accept.
If you wish me to provide assistance, please contact me at [email protected] if you are interested.
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