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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.