by Claire
I found out at noon yesterday that I had to appear in person for a hearing in Brownsville, Texas at 9 am this morning. A repeat of last week’s trip! I flew out last night at 6:25, went to Houston, then arrived Harlingen at 9:50. I just returned after leaving on a noon flight, again going to Houston and landing San Antonio at 6 pm. I’m not whining really because I know how fortunate I am to have a very good job but I share that because travel in Texas is pretty unique. Other people in my company cannot get their brain around that much flying and staying in one state.
I sat in the courtroom this morning waiting for my case to be called. The Judge asked for any uncontested matters to be heard first so I heard an uncontested divorce prove up, some property tax judgments being taken, a friendly suit (which is when a minor receives money and the law required the Judge to approve) and then there was a matter that I had not seen before. An attorney announced that he was seeking an approval of a structured settlement pay out for a woman who I’d put in her mid 50’s. She was Spanish speaking only so an interpreter was used. It seems that this woman had received a settlement for the wrongful death of her son back in 1991. At that time a structured settlement payment was entered into and certain amounts were guaranteed for a certain period of time. This obviously increased the value of her settlement because the then present day value of the settlement increased over time as it was invested and payments were structured. She was asking the court to basically release $85,000 of a settlement that would have been worth $140K. With that money she needed to pay off her $55,000 mortgage and part of her credit card debt. That’s right…just part of it. She was carrying another $50K in credit card debt.
The Judge was obviously moved by the situation. He took a lot of time to explore her situation and asked to see her many, many credit card statements. All of her credit cards were at 19% interest and above. Then he asked her about her mortgage and she testified that the interest is 24%! That blew all of us away and after a few more questions it became evident that hers was not a traditional mortgage (obviously!) and the Judge opted to stop inquiring as that went beyond the scope of what he was being asked to do at this time. I’m not sure what that 24% interest rate is about–maybe a contract for sale? It’s been years since I’ve done any property law so I have no real idea. The Judge sternly cautioned her that if she doesn’t change her spending habits, she will be right back in this mess. Even after “selling” her interest in the settlement she still faces $25K in credit card debt. He agreed to the pay out and she left the courtroom.
Clearly I have no idea what this woman’s circumstances are but based upon what I did hear and observe I was very sad! I am also disgusted by the creditors that extended her this amount of credit! Her spending habits and choices certainly come into play but what a tragedy to have to use money from the loss of your child to get you out of debt. It made me think though of the many parents with their children alive and well that are doing a huge disservice to their kids by being in inexcusable consumer debt. Just food for thought.
That was my sobering day in court today.
Born and raised in Texas. I’ve at least driven through every state in the US courtesy of a roadtrip loving Dad.
I’m single with two children and a good parenting relationship with their father.
I am a “life is just half full of funny” kinda gal. Humor is my saving grace and I am thankful for it every single day. I have a strong Catholic faith and am thankful for that foundation.
I read a lot for a living but still enjoy a good book. I love biographies but in recent years have found the need for fun fictional books–sadly, for a long time I just didn’t enjoy fiction!
I love live theatre of any kind–from local productions to Broadway.
I love to scrapbook and pride myself in my kids’ albums.
I love being a mom but also love my career. I’m blessed to have found a balance allowing me to be at everything my kids need and want me to be at–while also having a career.
Favorite Quotes: Well behaved women rarely make history.
Behold the turtle. He makes progress only when he sticks his neck out. -James Bryant Conant
What a terribly sad story. I truly hope this woman is able to get herself out of the debt cycle, I really do.
I would suspect that in her grief, this poor woman is trying to feel better by spending. I have been that person with money and food, both of which I am getting control. I, too, pray that she gets help with her finances.
24%?!?!?!?!?!?!?!?
I wonder if she got snagged by a very predatory lender…. Very sad, indeed. I hope she’s getting good financial advice, and following it.
Very sad. I am glad the judge at least warned her to be more careful with her spending in the future. I don’t suppose there was much else he could legally do. I hope the high interest rates were a result of her own bad choices and not that she was taken care of because she is an immigrant.
I think it’s a case of:
– Depression from the loss of her son
– predatory practices (seeking financial help, english as a second language, getting the bait & switch)
– Experiencing a financial windfall and lacking the know how to handle that amount of money.
Just very sad overall.
Wouldn’t it be better to pay off her credit cards first rather than her mortgage? You can write off mortgage interest and at least it is something of value. Credit card debt just accrues interest and she will never get it paid off with the amount she owes on it!