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Ok, So at the start of this Summer, my Dad went off to Jail, leaving my Mom to support me (college student), pay rent for the apartment we live in, pay the mortgage for a MLTF house we rent to others, and pay various bills.
On top of that, my dad left various credit card unpaid, and a huge montly cell phone bill my Mom cant change, because only my dad is authorized to change the plan.
The banks called, saying that if we didnt pay up, they would bring in attorneys, and most likely, take away our house.
We would gladly pay their quota, seeing as how we arent starving already, except, that what they ask us to pay is too much for my us.
So is there a way that the bank, credit cards, and phone payments can be, frozen for a while, at least until dad is back? Or is my mom left to pay everything because she is legally married to him?
Well first, the cell phone... if she can't change anything on it, she's not on the bill at all. It's solely under his name... so in essence she's not liable for it, unless it went as far as collections and they went after joint assets.
Have you spoken to the bank about your current situation? Foreclosure is very expensive, and lenders will often times do what they can to avoid it. Search online for "how to avoid foreclosure" and you will find a great many articles with some ideas.
As far as payments go... I've always felt the house payment is the most important payment, especially if you have equity in the house. You don't want to lose that big chunk of money. If you do have equity, it really could be time to consider selling as well...
jmho . . . You all need cash -- a lot. Financial Winter is hitting you and it can get far worse ahead. Cash protects you from much hardship and gives you options on how to deal with problems. Cash and college are not friends. I would suspect you might want to dump the Fall semester and get two jobs. That saves supporting you and brings cash in.
Among your bills -- if you stop paying the cell phone it will be shut off with some early cancellation fee, like maybe $250. That ends that.
If you do not pay the credit cards, they will lock up, as well, but their effective reaction is very slow -- 3 to 6 months before they are turned to collectors, who then will dink with them for a year or so before attempting a lawsuit for collection -- which they rarely do. Then you can wait out the Statue of Limitations. btw, what state are you in?
Is the rental house paying for itself? If so, that can be "sold" to you other third parties before collections hit.
That leaves your food, utilities, and rent. Cash handles those nicely.
I don't think they're going to just set aside the debts because your dad is in jail. I suspect your mother will need to sell the home she owns. Her other options would be to increase her income (via a second job, asking for a raise, etc.), reducing bills (cancelling cable TV, cancelling cell phone, etc.), selling possessions (jewelery, electronics, etc.), asking a relative or friend for financial help, or taking out a loan (probably a bad idea). The above answer is very good IMO - don't stop making payments on the home, your rent, or your utilities.
The thing to find out is the rental house just in her name or jointly with your dad?
Are his credit cards just in his name or joint with your Mother ?
You can tell this by how the bills come addressed, if they come in just his name it is probably not a joint account.
Just because they are married if the credit cards are not jointly held and the rental is only in her name there is nothing really the credit cards can do. They can only collect from the party that has the accounts.
Now if the house is jointly owned it is a different story.
Credit card companies will sue if you have equity in the house and the State you are in allows this.
So we would need some more information.
Why can't your dad call the cell phone company from jail, is he allowed to make phone calls?
If he is able to send mail out he can send a letter to the phone company giving them permission to speak to your Mother. That way she can change the account.
Again if the cell is only in his name and none of the assets are in his name they can't go after your Mother. They will try, but actually "disclosing debt" to a spouse that is not on the account is illegal in some states.
Is there any way you could refinance the mortgage? You may be able to lower the monthly mortgage with a good interest rate. If you are having trouble making the mortgage and you rent the property, it seems like a bad investment. Good luck to you and your mother. Like the post by Phillip T, you will survive this and here is always other options.
No, he doesn't need to drop out of school. He has his own life to take car of. His parents have made their choices in life. Take care of yourself, kid.
If his mom is not on the bills/credit cards in question then she is NOT responsible for the debt. She may need to have help drafting a letter to that effect to all the debtors in question but once notified they have to leave her alone and they have to leave her credit alone. And it has to be done IN writing. Certified mail.
IF she is not on the mortgage, they may have to move. Because the house may go into default on the loan and into foreclosure and not much she can do about that.
Any houses that your parents own jointly, she will either have to continue to pay the mortgage or get him to sell his interest to her so she can sell it or sign a POA so she can sell it.
The cell phone, if they will not let her change anything, she is NOT on the account. Let it go. Get a new one in her/your name.
Talk to his lawyer but I suspect you can forward all the bills addressed to him to jail. Let them/him sort it out.
Your mom and you need to move forward without him hanging around your collective neck.
Sit down with your mom, collect all the bills and go over everything with her...see where she actually stands.
If it's not addressed to her, have her call the company. If they will not talk to her without his authority, she is NOT on the account and is not liable for the bill. HE is. Liz
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