My mom, 85, stopped paying her credit card and is already $25K in debt — but will the impact of her freefall pass to me?

Core Insights - The article discusses the financial challenges faced by an elderly woman, Marie, who has accumulated $25,000 in credit card debt after receiving a terminal diagnosis, raising concerns about asset protection and debt collection [2][4]. Financial Situation - Marie receives approximately $1,300 monthly from Social Security and $1,600 from her late husband's pension, totaling $2,900 per month [3]. - Her house is valued at around $100,000 but is held in an irrevocable trust under her daughter Jean's name, complicating asset seizure by creditors [3][6]. Debt Collection Process - Debt collectors must obtain a court judgment before pursuing assets, and protections vary by state law [5]. - In Marie's case, most of her assets are protected from creditors due to their ownership structure [5][6]. Asset Protection - Social Security benefits are protected from garnishment by federal law, with exceptions for federal debts [6]. - The house in an irrevocable trust and the car owned by Jean's brother are not eligible for creditor claims [6]. - Non-exempt valuables, vehicles, bank accounts, and real estate owned in the debtor's name may be pursued by creditors, but specific protections apply [7].