Mom Has $150,000 In Debt!

Kristen is with us in Green Bay hi Kristen welcome today Ramsey show hole in the surrounded thank you for taking my call sure what's up about 177 thousand dollars in debt I just got the power of attorney so that I'm taking care of her bills one of her three creditors has transferred over her debt to a lawyer and I I've heard you talk about creditors and how to deal with them but I don't know how to deal with a lawyer on it now okay well it's a collections attorney which is basically a collector okay it's they're bottom-feeders so what kind of debt is the 177 thousand fifty eight for the mortgage I have about six thousand for their cars seven thousand for one medical bill four thousand for another medical bill and one thousand for another medical bill okay how old is she sixty-three why are you now power of attorney she's starting to forget stuff she tried getting checked out for dementia she's in the process of doing that and she hasn't been paying her stuff so I put her on a budget and so now I'm taking care of her stuff what is her income she makes about twenty eight thousand years mm-hmm okay and what is the house were hired sorry what's the house worth my sister lives in it now and she's kind of destroyed it I'm so much where's your mother running an apartment your mother is paying rent in an apartment so that your sister can live in the house yeah so what's the house worth I'm guessing 65 okay okay so how fastest are you throwing your sister out and selling the house I can't throw her she's on the deed I can't throw her out are you on the deed I'm not how did she get on the deed my sister has child with needs so my mom wanted to make sure my niece had a place to live so she put my sister on it are you paying that is your mother paying the mortgage yeah I told my sister I was not anymore yeah everything everything's in my mom's name all the utilities everything is Tyco Maui yep I can't turn the heat off I can't turn the utilities off because the winter's coming your sister can put the utilities in her name she says that she can't because her deposits too high mmm-hmm because she doesn't tend to pay her bills so they rate for deposit too you know compensate for that but you can cease to pay the bill right yes okay she needs to pay the bill yep and that's it and cease to pay the mortgage today okay I just got rid of 58,000 of the debt good and one hundred and one thousand and student loans passes away when your mom passes away yep okay so we don't worry about those quit paying those the student quit paying the student loans so now I gots eleven thousand dollars in some medical bills yep his the rest of it we're just not paying your mom doesn't have any money she's broke she's apparently got dementia she has $28,000 a year she's 63 years old she live in an apartment we have to make sure she's cared for first and that's food shelter clothing transportation and utilities she doesn't need transportation did you say there was a car in here does she need to be driving I say no you're the power of attorney yeah I know that I've tried to convince her to sell her car and get a thousand-dollar car because fifty eight hundred dollars is a lot for a car so it's not a lot for a car but it's a lot for a car for somebody that has dementia and I'm not sure they need to be driving right you can't remember to pay her bills can she remember how to get home I'm scared for her that was one of the poems she forgot how did you get home that's what started it is it responsible on your part to let her drive the answer is no right she I loved her you loved her you don't want her to be hurt or to hurt someone for God's sakes she could she could go driving off and end up in Tennessee from Wisconsin and we'd have one of those silver alerts or whatever they call them right yeah yeah no I think we're gonna I think we're gonna do away with cars period oh okay now we're down to medical bells these are very hard decisions for you okay but you have to do your job as the power of attorney and as a loving daughter is do things that are good for your mom regardless of who it upsets your sister is upset your mother's upset I don't care it's very hard for you to make those decisions but we're only going to do things that are good for your mom none of this you are doing is out of greed for yourself okay so tell the student loan people they get zip nothing nada okay tell your sister she gets nothing not a zip sell the car now I'm down to just a few medical bills and I think you can work your way through those with her income or at least get some kind of a payment plan going that's very small and you can let that attorney's office know that basically she has no money what women what is the $28,000 coming in from she has a pension annuity and Social Security okay then what I probably would do with these medical bills is let them know they're probably not going to get paid either except if I have a little extra money here they're after taking care of mom because I paid 50 on it last month on each one it's okay if you won't pay 25 or something or if you can work out some kind of slump some and you know 500 bucks settles a whole debt or something like that clears them up that's fine but here's the thing if they were to sue her do you know what they're going to get nothing because you know what she has nothing all of the income that she has they cannot attach you can't attach pension income you can't attach social security income and you can't attach an annuity and so that she's what we call judgment proof because she's broke and so that puts you in a very strong position to talk to mr. or mrs. collections bottom-feeder attorney when you do talk to them and just go here's situation she's 63 she's got dementia she has no assets and her only income is pension and Social Security she's judgment-proof tell him I said that only talking in a financial coach and he said they're judgment-proof okay and so what we'll do is we would like to clear this up but we're gonna do it for pennies on the dollar so make me a ridiculous offer because that's the only way you're getting any money and play hardball with them because we got to take care of mom here yeah I'm not trying to I'm not trying to beat him by up I'm not trying to hurt anybody I'm trying to protect your mom and the last thing I needed she gets her food paid her lights and water her rent and she is taken care of only then do we deal with a couple of medical bills sell our car sister gets nothing student loan gets nothing so I'm I'm saying this real kind of like because I want you to get a little that down inside because I know these are gonna be hard conversations for you yeah but you gotta be are cuz it's your mom you're protecting okay exactly you can do it you can do it if you need some help you call me back but just just play hardball with them tell them she's my proof my goodness what a story Wow there's a reason to save for retirement right there did you want not want to retire bro save for retirement there's a reason right there you just security is right there that's why you want to have half a million dollars in your 401k when you get to retirement right there it is instead of buying that stupid car yeah hello hey guys thanks for watching if you enjoyed this video click the subscribe button to get the latest content and check out these other great clips from the show [Music] [Applause] [Music]

Channel: The Dave Ramsey Show

Views: 199,095

Rating: 4.8942499 out of 5

Keywords: mom is in debt, debt, my mom is in debt, Mom Has $150, 000 In Debt, money, dave ramsey, dave ramsey show, dave ramsey live, the dave ramsey show, dave ramsey debt, dave ramsey going broke, dave ramsey mom

Id: NdE3iX41YtE

Length: 9min 18sec (558 seconds)

Published: Fri Nov 24 2017