Many people live on a minimal amount of income. Many have sacrificed food in order to pay debts. Many have other necessary expenses that does not leave them enough money for an adequate diet. It is distressing that after a life of hard work, many seniors are forced to sacrifice something as basic as food. But there is help available for many.
You may have heard of food stamps. This program is now called Supplemental Nutrition Assistance Program or SNAP. This is a federal program administered by the states that provides supplemental income to persons for the purchase of food. Unfortunately, many seniors who qualify for SNAP do not take advantage of this program.
Lets go over the basic qualifications. Remember: it is easier for someone over the age of 60 to apply and qualify for help.
1. A member of the household where you live normally needs to apply in person. However, if you are unable to go, the interview can be done by phone or a home visit made.
2. There is a limit on your assets. Your home does not count! You can have a car worth up to $4,650 per adult household member. A car necessary to transport a household member that is physically disabled is not counted. Other household assets are limited at $3,000 for a household with a senior or disabled person. Remember, we are talking about auction value and most persons assets don’t exceed this. Many people over-value their assets. Do not do this!
3. Income qualifications vary by state but again the rules are more generous for seniors. For example, in Oregon a household of two earning $1,500 from Social Security with rent of $500 and medical expense of $250 would receive $153 in food assistance.
4. You can use this online pre-screening eligibility tool
Thankfully, we live in a country that provides for those of us that have need for food. There should be no shame or embarrassment in seeking and obtaining assistance with food. If you need help please consider applying.
For HELPS Clients:
You can turn to HELPS if you need questions answered and we will try to point you in the right direction. If necessary we will even get the right agency on the phone with you.
To learn more about HELPS visit our website: http://www.helpsishere.org/
HELPS is a nonprofit law firm for seniors and disabled persons on a protected income who are being harassed for debts they can't pay. We're committed to educating people about their financial rights so they don't needlessly pay their collectors with money that should be used for food, heating, medicine, and other basic necessities.
This blog will be updated every Friday with articles and relevant information.
Friday, April 25
Friday, April 18
How HELPS Worked for Ron M.
Transcript: "Yeah once you have this, man, it's like somebody come and lift a burden off you. I mean lets face it, you know? Then the bill collectors would keep after you after this started, but boy after HELPS sent out the letter and said "hey if you have anything coming up, don't talk to him you talk to us, we're his attorney." Boy I tell you after that got down to, aw maybe one or two. What would happen is they would change collection agencies. They would have ABC collection one week and ABC I guess would turn in back in to them and say "hey, we can't do anything." They turn it over to XYZ collection agency so they'd call you the next week and so then again you go to HELPS and they contact them and these people just go away. Because they know that they can't harass you because HELPS will sue them if they keep doing that you know? Because you're at a disadvantage when you owe them money and stuff because you don't know what to do, you're not an attorney, you don't know what your rights are. You just know I owe them money and I can't pay it. But these guys, the attorneys at HELPS boy they really take the burden off you. Life really becomes a lot different after, a lot better."
A big thank you to Ron M. for taking the time to talk to us!
A note about HELPS:
We do not sue collection agencies, if you continue to have trouble with an agency we will help refer you to an attorney who can help. For information on what HELPS can legally do please look at the FAQ on our website.
Friday, April 11
Online Payday Loans
An online payday loan is similar to one you would receive from a lending store: a short-term, unsecured loan that you pay off your next payday. Lenders profit from trapping you in a cycle of debt. You may pay the loan, but then need to renew it to deal with your other financial obligations.These loans provide quick money, but their high interest rate (we've dealt with some near 500%) makes them difficult or impossible to pay back.
Online payday loans present their own unique problems because it’s difficult to locate and regulate online lenders. Companies can anonymously create websites, and locate themselves where there are limited regulations on lenders. Some of these companies are located overseas, and often have no physical address making it challenging to contact them, resolve complaints, and enforce consumer rights. We have had some HELPS clients come to us with payday loans. Even when we have a physical address and can send notices to the payday loan lender they often ignore our contacts and harass the HELPS client. They do this because they know they cannot be sued because they move around too fast and are based overseas (even though it may appear they are in the U.S.).
Lenders hide not only their personal information, but facts about the loan, including the annual percentage rate (APR). It’s important to consider the APR instead of just the fee on the loan, because the creditor will attempt to force it to roll over. In fact many lenders will require you to decline to refinance or your loan renews automatically. They utilize the banks system of direct deposit/ withdrawal; the automatic renewing can go unhandled resulting in more debt.
We strongly advise everyone to avoid or discontinue any use of payday loans.
For our clients:
If you continue to be harassed by a payday loan company, please advise us. We will take every step available to stop them. Resist the temptation to answer their calls or engage them in conversation. They often make false threats that scare people; including arrest and jail. It is best not to even speak with them.
To learn more about HELPS visit our website: http://www.helpsishere.org/
By Reese Tozier
The Debt Cycle
Online payday loans present their own unique problems because it’s difficult to locate and regulate online lenders. Companies can anonymously create websites, and locate themselves where there are limited regulations on lenders. Some of these companies are located overseas, and often have no physical address making it challenging to contact them, resolve complaints, and enforce consumer rights. We have had some HELPS clients come to us with payday loans. Even when we have a physical address and can send notices to the payday loan lender they often ignore our contacts and harass the HELPS client. They do this because they know they cannot be sued because they move around too fast and are based overseas (even though it may appear they are in the U.S.).
Lenders hide not only their personal information, but facts about the loan, including the annual percentage rate (APR). It’s important to consider the APR instead of just the fee on the loan, because the creditor will attempt to force it to roll over. In fact many lenders will require you to decline to refinance or your loan renews automatically. They utilize the banks system of direct deposit/ withdrawal; the automatic renewing can go unhandled resulting in more debt.
There are ways
to defend against predatory online lenders. The easiest is to find
other borrowing options: legitimate overdraft protection, borrowing
from credit unions who offer safer alternatives, or from friends,
family, or a religious institution. If you are going to take out a
payday loan find one without an interest rate in the triple digits, avoid very short term loans (e.g. two weeks). Avoid sharing
personal information with unfamiliar companies; above all, do not
give your banking information to internet lenders. If you
do, it is possible you will have to change banks to stop them from
withdrawing from your account.
We strongly advise everyone to avoid or discontinue any use of payday loans.
For our clients:
If you continue to be harassed by a payday loan company, please advise us. We will take every step available to stop them. Resist the temptation to answer their calls or engage them in conversation. They often make false threats that scare people; including arrest and jail. It is best not to even speak with them.
To learn more about HELPS visit our website: http://www.helpsishere.org/
By Reese Tozier
Friday, April 4
What Happens to my Assets When I Pass On if I Have Debt?
As a general rule, when you pass on, property that is owned jointly with a surviving spouse will become his or her property. What about when you are the survivor of the marriage or are single, what happens to your property when you pass?
When a person dies, their assets or "estate" first pays for the cost of their passing, funeral expenses and the like. Next, any outstanding debts are paid, and finally (if there is anything left) it will be distributed to the heirs. Often the person passing leaves little, if any, assets and nothing needs to be done. Family heirlooms and keepsakes have been gifted long before. For those that leave property, many states have a small estate proceeding to distribute property of minimal value. This process is simple and inexpensive, normally without attorney involvement.
Sometimes people will put their children on their bank account or add names to a car title so when they pass on, the property automatically goes to the survivor. If someone is buying a home and there is no equity, the home can simply go back to the bank. The heirs will not be responsible for that debt – only assets of the deceased will be used to pay the debt.
If there is equity in a home, there might be a reason to file bankruptcy- to eliminate the debt so when the person passes, the equity can go to the heirs. Sometimes people will add children to the deed so it automatically goes to the children upon death. Others deed the property to their children reserving what is called a life estate, which allows them to live in the home while they are alive. Then when they pass, the property goes automatically to the children. There is no probate or estate.
For our clients:
HELPS does not engage in estate planning. However, if you don't know who to speak with, you can talk with us and we can try to help you find an expert for you in your local area, with whom you can speak with for no charge.
To learn more about HELPS visit our website: http://www.helpsishere.org/
When a person dies, their assets or "estate" first pays for the cost of their passing, funeral expenses and the like. Next, any outstanding debts are paid, and finally (if there is anything left) it will be distributed to the heirs. Often the person passing leaves little, if any, assets and nothing needs to be done. Family heirlooms and keepsakes have been gifted long before. For those that leave property, many states have a small estate proceeding to distribute property of minimal value. This process is simple and inexpensive, normally without attorney involvement.
Sometimes people will put their children on their bank account or add names to a car title so when they pass on, the property automatically goes to the survivor. If someone is buying a home and there is no equity, the home can simply go back to the bank. The heirs will not be responsible for that debt – only assets of the deceased will be used to pay the debt.
If there is equity in a home, there might be a reason to file bankruptcy- to eliminate the debt so when the person passes, the equity can go to the heirs. Sometimes people will add children to the deed so it automatically goes to the children upon death. Others deed the property to their children reserving what is called a life estate, which allows them to live in the home while they are alive. Then when they pass, the property goes automatically to the children. There is no probate or estate.
For our clients:
HELPS does not engage in estate planning. However, if you don't know who to speak with, you can talk with us and we can try to help you find an expert for you in your local area, with whom you can speak with for no charge.
To learn more about HELPS visit our website: http://www.helpsishere.org/
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