ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Monday, February 24, 1997 TAG: 9702250141
SECTION: MONEY PAGE: 6 EDITION: METRO
COLUMN: MONEY MATTERS
SOURCE: MAG POFF
Q: Last year I had to declare bankruptcy. Two of my credit cards had my dad's name on them. Is there any place I can go to get a loan to pay off these two credit cards? I want to get my dad's name off this credit problem. I want the loan even if the repayment has to come off my paycheck so my dad wouldn't be responsible if something should happen to me.
A: Virginia Garretson, president of Consumer Credit Counseling, said getting a loan depends on how quickly you can restore your credit. That, in turn, depends on what caused you to file for bankruptcy in the first place and the type of debts you had. Usually it takes time to regain your financial footing, she said. You must work to show your credit habits have changed before anyone will lend you any money.
If you have a joint account with your father, or if he co-signed your credit card account, the bank will look to him for payment now that you have bankrupted your debt. Garretson said your father is equally responsible for the debt, so he can expect to be called upon to make payment soon. It has nothing to do with something happening to you because he is responsible in his own name if he was a joint owner or co-signer.
Garretson said you and your father both need financial counseling, which her agency can provide. There is no charge to you.
Consumer Credit Counseling has an office at 7000 Peters Creek Road in Roanoke. It also has branch offices in Bristol, Christiansburg, Lynchburg and Martinsville in Virginia and at Johnson City and Kingsport, Tenn.
You can arrange for an appointment by calling 366-2227 in Roanoke. If you live outside the Roanoke Valley, call 800-926-0042.
Banker acting as lawyer is illegal
Q: I am a widow and 70 years old. I have some money in a savings account, money market account, certificate of deposit and an Individual Retirement Account. I have only one child, and his name is on all of my accounts.
My banker drew up a will and a power of attorney for me. Do I need to go to a lawyer to draw up another will and power of attorney? Some people say my son gets all of my estate anyway without any problems.
A: Your banker appears to be engaging in the unauthorized (and illegal) practice of law unless he also is a lawyer. You can write your own will, but a person holding out legal services to another is supposed to be a lawyer.
Regardless of that factor, with only one child, your estate would appear to be a simple one. Your son would inherit your assets. But suppose you should outlive him? Or perhaps you might be disabled before his death and unable to deal with the problems that this would cause. Your grandchildren might be too young to handle an inheritance or they might be spendthrifts. A lawyer can help you deal with questions that might not have occurred to you.
The accounts you share with your son should pass to him directly at your death outside your will if you have set them up properly. But what happens if he gets into financial trouble and his creditors start looking for his assets? Suppose he becomes involved in a bitter divorce and his wife decides to claim a share of that inheritance.
You should also have a power of attorney prepared so that your son can handle your affairs if you should suffer a disability.
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