Bankruptcy

jatflaFebruary 16, 2005

Anyone here familiar with this procedure? My parents are in such debt. They will never be able to pay off their creditors. Right now they have 7 collection agencies that they are paying. Mom is in low income housing (it's nice) and Dad is in a nursing home. All they have is their SS and not a pot to pee in. (Well, there is the one at the house.)

As things are going, Dad will probably pass away before Mom (they are 76 & 74) and every bit of their income is spent each month. There will be even less later. Just trying to think of something to relieve her stress.

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PeaBee4

check out this site. I think that Chapter 11 is the best route for her to take. Nothing will help unless she cuts up her credit cards and quits using them.

Here is a link that might be useful: Bankruptcy Laws

    Bookmark   February 16, 2005 at 8:44PM
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lasershow

What kind of debt do they have? Is it credit card, back taxes, healthcare costs, etc.? As an FYI, if you owe back taxes, bankruptcy does not wipe that out. Is your father on Medicaid for the nursing home costs?

Have they tried negotiating with their creditors? I think we need a bit more information before we can offer substantial advice.

    Bookmark   February 16, 2005 at 9:56PM
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momj47

Maybe you should start with the Consumer Credit Counseling Service, they are very reputable, and can probably help. I'd hate to see your parents victimized by an unscrupulous lawyer who has them declare bankruptcy if they don't have to.

Take away those credit cards, and get control of the bank accounts.

Good luck.

    Bookmark   February 17, 2005 at 5:35PM
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jatfla

It's all credit card debt. I think I'll take the advice about the Consumer Credit Council. Dad has no access to the money and Mom is fairly good about spending. There is nothing left when the bills are paid. They are just never going to get it all paid. The phone calls drive her crazy and I've told her to give them my number and not to talk with them. Get this....several have tried to intimadate her into charging their debt onto another credit card!!!!

    Bookmark   February 17, 2005 at 9:18PM
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pfllh

I don't know about Fl law but to get them to quit calling, check with the Attorney General's office about creditor harrassment. In some states you can advise them not to call as it is harrassment and a lawsuit can be filed if they continue.
If you can help your mom, what about a non listed telephone number. It cannot be given out even if people call the operator.
You said your mother is fairly good about spending. Put her on a budget and close the accounts where no more can be charged but payments can be made. THEN cut up all the credit cards. Does she qualify for food stamps to be sure she has the necessities? You may want to check into that. Hopefully your name is not on any of the accounts as if she passes away, you will be responsible for the bills.
I wish you the best in trying to resolve this problem.
Lynn

    Bookmark   February 19, 2005 at 12:22AM
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cathyid

Concidering the debt they have you should talk to an attorney. Not one that has these big huge ads to draw you in. My guess , and it is only a guess, is that they can probably get the debts forgiven or at least reduced. There should be a referal agency or an agency that can give you the advice for free or at least at a very low cost. Once bankruptcy is filed, it can not be filed again for 7 years. In the case of long term care for one or both parents, filing now may not be the best way to go. I was able to have my Mom's debt discharged, without any further payments. Once she had used all of her funds and assets, she was on medicaid. Medicaid uses all of their benefits, except for a small amount, for their care. It leaves the creditors no choice but to write it off. You say your Mom is in low cost housing, but is she on a SSI or a retirement policy or still using her own funds. For anything to happen, her personal funds need to be exhausted.

    Bookmark   March 2, 2005 at 1:31PM
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puc13

I read here often and think the link below (I hope it works, never posted a link here before) might be useful to you (and anyone else with credit questions).
There are a lot of "tools" available regarding harrassment by creditors and recourse suggested.
If your question is not answered in one of the existing posts, ask...they seem to be really helpful (even if a little more honest than we want to 'hear').
I am not affiliated with nor know anyone affiliated with the site, just found it very helpful and educational and want to pass it on.
My thoughts are with you
puc

Here is a link that might be useful: ArtofCredit

    Bookmark   March 10, 2005 at 12:17AM
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jatfla

With Dad in the nursing home and on Medicaid, she is using his check to pay their bills...and part of hers now. I've mentioned bankruptcy to my husband but I think both of us are just stagnant. We're getting through our days, doing what we need to do. Attorneys cost money and require *time*; our most precious comodity.

She is not on Medicaid because I have not sought to do the paperwork. She has independant Health care coverage, Meals on Wheels (though the food is kinda' yucky; really bad for you). Medicaid would take everything away; meaning her freedom to use their money how she chooses. They own nothing, but silly as it sounds, paying the bills helps her think she's still *in charge*. I've talked with 4 of the creditors and they are finally getting the message. $25.00/$50.00 a month will never pay their debts, but she's showing *good faith* intent. I feel terrible that I can't seem to muster anymore interest in pursuing anything.

Mom had surgery on her "bad" hand last week. 4 trips to the Doctor, but she is doing ok and I think she's glad she had it done. But this week I've noticed that I was more sharp and insensitive towards Dad when I took him home. Everything about him aggrevates me and for the first time, I realized that I could, by my *hurrying/rushing* to get things done, cause hurt to him. That really jolted me. That's another topic, I guess.

    Bookmark   March 11, 2005 at 8:38PM
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jatfla

With Dad in the nursing home and on Medicaid, she is using his check to pay their bills...and part of hers now. I've mentioned bankruptcy to my husband but I think both of us are just stagnant. We're getting through our days, doing what we need to do. Attorneys cost money and require *time*; our most precious comodity.

She is not on Medicaid because I have not sought to do the paperwork. She has independant Health care coverage, Meals on Wheels (though the food is kinda' yucky; really bad for you). Medicaid would take everything away; meaning her freedom to use their money how she chooses. They own nothing, but silly as it sounds, paying the bills helps her think she's still *in charge*. I've talked with 4 of the creditors and they are finally getting the message. $25.00/$50.00 a month will never pay their debts, but she's showing *good faith* intent. I feel terrible that I can't seem to muster anymore interest in pursuing anything.

Mom had surgery on her "bad" hand last week. 4 trips to the Doctor, but she is doing ok and I think she's glad she had it done. But this week I've noticed that I was more sharp and insensitive towards Dad when I took him home. Everything about him aggrevates me and for the first time, I realized that I could, by my *hurrying/rushing* to get things done, cause hurt to him. That really jolted me. That's another topic, I guess.

    Bookmark   March 11, 2005 at 9:50PM
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momj47

You need to look at those credit card statements and see how much interest she is being charged. It could be as much as 25% to 30% and will far outrun her minimum payment. The balance will increase very fast and quickly end up being double or triple what she really owes. A service like Consumer Credit Counseling Service can probably stop that interest and balance increase and get a fixed balance to pay off. Those debts will have to be paid, sooner or later, by someone (probably you), so keep a close eye on those balances, so you know what's coming.

    Bookmark   March 12, 2005 at 8:08AM
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