What to Do With Uncollectible Senior Leads?
I sat down with Eric Olsen of HELPS Law Group to talk about seniors and disabled clients who live on protected income and get hammered by collection calls. Here are three takeaways:
- Many seniors and disabled clients are judgment-proof, so bankruptcy is unnecessary and unaffordable.
- Ongoing representation that stops calls and explains protections solves the real problem: fear and harassment.
- Referring to HELPS gives clients lifetime relief at a minimal cost while you keep your practice focused.
Check out the video of this episode of the 720 System Strategies podcast, or keep reading for frequently asked questions.
Frequently Asked Questions
- What makes a senior or disabled debtor judgment-proof?
- What does HELPS do for clients who are uncollectible?
- How much does HELPS cost and how long does coverage last?
- How does HELPS screen and enroll a new client?
- Will collection calls and letters actually stop?
- What happens if a client is sued after enrolling with HELPS?
- Can banks still garnish protected Social Security funds?
- When should a debtor attorney refer to HELPS instead of filing bankruptcy?
- Can HELPS handle cases in every state and explain exemptions?
- Can seniors keep a small credit card while ignoring others?
- Can HELPS help with taxes, student loans, or credit rebuilding?
- Why is this better than telling a senior to file a low-cost Chapter 7?
FAQ: What makes a senior or disabled debtor judgment-proof?
A debtor is judgment-proof when their income and basic assets are legally protected and creditors have no practical way to collect. For many seniors and disabled clients, Social Security, pensions, VA benefits, disability, IRAs, and 401(k)s are protected, and state exemptions often cover modest assets. In those cases, filing bankruptcy is unnecessary and unaffordable.
The real pain is not garnishment. It is the constant harassment and fear. Helping clients understand their protected status and putting a barrier between them and collectors solves the problem they actually feel.
FAQ: What does HELPS do for clients who are uncollectible?
HELPS represents seniors and disabled consumers so collectors must talk to HELPS, not the client. Under the Fair Debt Collection Practices Act, once an attorney represents a consumer, third-party collectors have to stop calling and sending demand letters to the consumer.
HELPS also sends cease and desist notices to original creditors. Most stop contact after that. Clients keep a direct line to HELPS for ongoing questions so the next letter or call does not trigger panic.
FAQ: How much does HELPS cost and how long does coverage last?
HELPS charges a small monthly fee with delayed start, and never turns anyone away for inability to pay. Typical paid plans are about $20 to $40 dollars for a period, then the fee drops, and after several years the service becomes free.
Some clients pay nothing from the start. Either way, representation continues for life. The model is built to be accessible for fixed incomes.
FAQ: How does HELPS screen and enroll a new client?
HELPS gathers basics up front, including state, age, marital status, home ownership or rent, vehicle, income sources, banks or credit unions, suit history, and approximate unsecured debt.
They also ask about taxes, student loans, and any small credit the client hopes to keep.
That snapshot confirms protected income and assets, surfaces risk areas, and sets expectations. Enrollment can begin immediately, with the first payment typically 30 to 60 days out.
FAQ: Will collection calls and letters actually stop?
Yes, once HELPS represents the client, third-party collectors must stop contacting the consumer and route communications through HELPS. Original creditors often stop after receiving notice as well, though billing statements can continue.
If a new collector appears months or years later, the client forwards the notice to HELPS and the process repeats. The point is steady, ongoing peace.
FAQ: What happens if a client is sued after enrolling with HELPS?
If a client is sued, HELPS notifies the opposing attorney that the client’s income is protected, that the debt will not be paid, and that a judgment changes nothing about collectability. HELPS also reminds counsel about the protected status of relevant bank funds.
Clients get coaching on what to expect. Most of the time the suit ends in a paper judgment that cannot reach protected income or exempt assets.
FAQ: Can banks still garnish protected Social Security funds?
Federal rules require banks to protect an amount equal to two months of direct-deposited federal benefits in an account when a garnishment order arrives. For example, if monthly Social Security is $1,500, the bank must automatically protect 3,000 dollars in the account, regardless of other deposits.
Credit unions can be slower to apply these rules, but departments that handle garnishments generally follow them. HELPS educates clients and notifies counsel as needed.
FAQ: When should a debtor attorney refer to HELPS instead of filing bankruptcy?
Refer when the client lives on protected income, owns only exempt assets, and has no realistic exposure to collection. Also refer when a bankruptcy would create unnecessary complexity, such as pushing equity into a Chapter 13 the client cannot afford.
This referral frees your team from long reassurance calls and gives the client a permanent solution that matches their reality.
FAQ: Can HELPS handle cases in every state and explain exemptions?
Yes. HELPS works nationwide and helps clients understand general protections and common state exemption issues. They also flag when a true bankruptcy referral is appropriate and connect the client.
The goal is practical guidance that fits the rules where the client lives without sending them in circles.
FAQ: Can seniors keep a small credit card while ignoring others?
Often they can keep a small card if it is not tied to a bank where they will default on another account. Unlike bankruptcy, which usually leads to accounts being closed, HELPS does not trigger that automatic cutoff.
HELPS screens for bank relationships and advises how to avoid unintended closures.
FAQ: Can HELPS help with taxes, student loans, or credit rebuilding?
HELPS advises clients on options like currently not collectible status for IRS debts and gives practical guidance on student loans. After clients stabilize, HELPS can point them to credit rebuilding resources such as 720 Credit Score for Seniors.
The aim is steady recovery. Clients learn what matters, what to ignore, and when to seek a targeted bankruptcy.
FAQ: Why is this better than telling a senior to file a low-cost Chapter 7?
It is better because many seniors do not need a bankruptcy, and a filing can backfire if nonexempt home equity or other issues force a Chapter 13 that the client cannot sustain. The cheaper option is not cheaper if it creates new risks.
With HELPS, the calls stop, the income stays protected, and the client keeps a guide on speed dial for the next letter or lawsuit.