I have been managing my elderly mother-in-law’s finances for a year now, after her husband passed away. He did the majority of the bill paying so I took over the job to help her out. They had no savings and were both reliant on social security as their sole income. With his passing, she now only makes about $950 from social security each month.

She drains her bank account to zero whenever the social security payment hits each month and barely squeaks by. For Christmas, she decided to buy us and several family members gifts from the Montgomery Ward catalog using their credit. My mother in law is a very nice woman, but I guarantee she was lured in with a “Buy Now, Pay Later” scheme without thinking through the details of interest rates, etc.

Since we manage her finances, we asked to see the bill so we could get it paid for her and balance her monthly budget. She charged nearly 500 dollars to this credit account. She also did not hand over the info until we asked and she already missed this month’s payment due date. Apparently they want her to pay 25 a month plus 25.99% interest for the next 17 months or so. Honestly, her budget is down to zero each month- she cannot even afford the 25 a month. 

I would imagine the bill goes to collections eventually if she doesn’t pay. (I am pretty clueless with this as I have never carried a balance on a card or anything like that) Can a collection agency garnish her social security? She has a bank account that she basically only uses to cash out her social security…she doesn’t own a car or any property. What are the consequences if this bill goes unpaid? (We don’t care if her credit is trashed- we don’t want her in another situation like this.) She claims she did not provide her bank account/debit card info when applying for the credit but not sure what to believe- she will fib to us sometimes. Unfortunately she believes it’s the Montgomery Wards of the past and doesn’t believe us when we tell her it’s an overpriced/scammy online company now.
Firstly, I'm sorry to hear about your situation. It's challenging, especially when dealing with financial matters for the elderly. 

To answer your question, typically, Social Security income is protected from most creditors. According to the U.S. Department of Health & Human Services, these benefits are protected from garnishment, arrest, or attachment under the law. However, there are some exceptions for certain debts like federal taxes, child or spousal support, and some types of student loans. But in general, debt collectors, like those that would be collecting for Montgomery Ward, can't take Social Security benefits.

That being said, if the Social Security money is directly deposited into her bank account, the bank is required to protect 2 months' worth of benefits from garnishment. If she has more than 2 months' worth of benefits in her account, the bank could potentially freeze the account and allow the creditors to take funds above that amount. 

In terms of consequences of not paying the bill, it can lead to damage to her credit score, increased interest and late fees, and potentially legal action. However, as you've mentioned, if she doesn't have any assets and her only income is Social Security, she may be considered "judgment proof," meaning even if a creditor sues and obtains a judgment against her, they may not be able to collect anything.

It would be best to consult a financial advisor or an attorney who specializes in elder law to guide you through this process, so you can understand all potential consequences and options. They may recommend options like negotiating with the creditor, setting up a debt management plan, or in extreme cases, considering bankruptcy.

In the future, to prevent situations like this, it might be helpful to have a conversation with her about her financial decisions, and potentially consider a financial power of attorney if she's agreeable to it. This will allow you to make financial decisions on her behalf and prevent her from falling into such traps.
### Human
I have been managing my elderly mother-in-law’s finances for a year now, after her husband passed away. He did the majority of the bill paying so I took over the job to help her out. They had no savings and were both reliant on social security as their sole income. With his passing, she now only makes about $950 from social security each month.

She drains her bank account to zero whenever the social security payment hits each month and barely squeaks by. For Christmas, she decided to buy us and several family members gifts from the Montgomery Ward catalog using their credit. My mother in law is a very nice woman, but I guarantee she was lured in with a “Buy Now, Pay Later” scheme without thinking through the details of interest rates, etc.

Since we manage her finances, we asked to see the bill so we could get it paid for her and balance her monthly budget. She charged nearly 500 dollars to this credit account. She also did not hand over the info until we asked and she already missed this month’s payment due date. Apparently they want her to pay 25 a month plus 25.99% interest for the next 17 months or so. Honestly, her budget is down to zero each month- she cannot even afford the 25 a month. 

I would imagine the bill goes to collections eventually if she doesn’t pay. (I am pretty clueless with this as I have never carried a balance on a card or anything like that) Can a collection agency garnish her social security? She has a bank account that she basically only uses to cash out her social security…she doesn’t own a car or any property. What are the consequences if this bill goes unpaid? (We don’t care if her credit is trashed- we don’t want her in another situation like this.) She claims she did not provide her bank account/debit card info when applying for the credit but not sure what to believe- she will fib to us sometimes. Unfortunately she believes it’s the Montgomery Wards of the past and doesn’t believe us when we tell her it’s an overpriced/scammy online company now.

### Assistant
Firstly, I'm sorry to hear about your situation. It's challenging, especially when dealing with financial matters for the elderly. 

To answer your question, typically, Social Security income is protected from most creditors. According to the U.S. Department of Health & Human Services, these benefits are protected from garnishment, arrest, or attachment under the law. However, there are some exceptions for certain debts like federal taxes, child or spousal support, and some types of student loans. But in general, debt collectors, like those that would be collecting for Montgomery Ward, can't take Social Security benefits.

That being said, if the Social Security money is directly deposited into her bank account, the bank is required to protect 2 months' worth of benefits from garnishment. If she has more than 2 months' worth of benefits in her account, the bank could potentially freeze the account and allow the creditors to take funds above that amount. 

In terms of consequences of not paying the bill, it can lead to damage to her credit score, increased interest and late fees, and potentially legal action. However, as you've mentioned, if she doesn't have any assets and her only income is Social Security, she may be considered "judgment proof," meaning even if a creditor sues and obtains a judgment against her, they may not be able to collect anything.

It would be best to consult a financial advisor or an attorney who specializes in elder law to guide you through this process, so you can understand all potential consequences and options. They may recommend options like negotiating with the creditor, setting up a debt management plan, or in extreme cases, considering bankruptcy.

In the future, to prevent situations like this, it might be helpful to have a conversation with her about her financial decisions, and potentially consider a financial power of attorney if she's agreeable to it. This will allow you to make financial decisions on her behalf and prevent her from falling into such traps.<eos_token>