Question for my mother Re: BOA

[kstmommy]

Hi guys. I need advice for my mother. She has an old account from Bank Of America for approx $11k. They've harrassed and harrassed. She said the last payment she made was May 2011. She finally agreed on a payment arrangement, of $100/mo directly with BOA. They agreed on 0% interest and no service charges, as long as she pays on time every month.The payment is due tomorrow. She's not sure she can keep up this obligation for the long haul.

I've been reading here and learning and I want to make sure she's doing the right thing here. She's scared to death it will turn into a judgement. I haven't pulled her CR, so I don't know if it's on there yet.

What do you experts think?

[guiness56]

Was the account charged off or gone to collections?

Was the agreement in writing? 

Whether or not she is paying they can still get a judgment.  It is kind of a low thing for them to do but they can.  They can also continue to report her late each month until it was paid off.

What state are you in?  If she hasn't made a payment yet she may not have restarted the SOL.

[kstmommy]

She's not sure if it has gone to collections or not. It doesn't sound like it since she's working directly with BOA. The payment in 2011 was a normal payment that was due, and it was the last one.

This agreement was not in writing, only verbal. She thinks they recorded it.

We live in Indiana

[pizzadude]

What is the approx balance remaining ~ how many payments does she have left?

[kstmommy]

The balance is approx $11,000 and the agreed payment is $100/mo for NINE years.

eta - she's 72 years old and in bad health

[guiness56]

SOL is 6 years for CC debt.  Unfortunately she is still within SOL.

Is there any way she could offer them a settlement amount?

[kstmommy]

There's no way she can settle, even for 50% since it's such a large amount. Because of her age, health, and stress level over this, I'm half tempted to tell her just to screw it for now. I just don't want to make it worse. It sounds like this 108 month payment plan is the only choice. What do you guys think would happen if she just didn't follow through?

[guiness56]

They would probably file a judgment. 

What is her income, Social Security, Retirement?

[kstmommy]

Their only income is Social Security (both parents) and approx $10k in rental income property.

[guiness56]

The rental income would probably be garnishable but not the social security.