need some help with my parents BK

[jessegirl]

Hi everyone - Well, at the ripe age of almost 80 years old my parents will
need to file bankruptcy....Its really sad. They are devistated about it. They
are old school and think it is really bad to file.

Anyways, they live on a fixed income of no more then 27K a year between the 2 of them. They get social security and my dad just gets a small pension.
Does the SS count as income? I believe they are way under for income. Also,
they probably cannot even afford an attorney so I am calling all over the place looking for one with a reasonable price. I would not recommend mine as the are really expensive - cost me 3800K.

They also live in a co-op. There house is paid in full. But my dad says that they really do not own the land that the hosue is on and they do not own the house....I am confused about that one, maybe hes right cause its a co-op??

They have no money to speak of only a cd with well under 10K, Thats there life savings at 80. Do you think the trustee would try an take the house, being its paid off, but partially owed by the co-op? Also, they have life ins policies that they had from when they were young. Would the trustee try to take that? They need it when the time comes to take care of things.

Its really sad at this stage of the game to go thru this. Its really depressing them. The creditors just raise there interest rates up triple and now they cannot afford to pay. They have never ever been late in 60 years on anything. They called cap one and they didn't want to know nothing. I guess all of these creditors are jumping on the band wagon before the news laws go into effect.

What do you think about some of my questions?

[nodollarsnomo]

Please make sure this is something that would be in their best interest. At their age they should just stop making their cc payments and not worry about it effecting their credit.

My dad made some bad credit choices a few years ago after bypass surgery. I had them stop all payments. They got a few phone calls, but I sent out C&D letters on their behalf. They own their home and they also receive SS and nothing has ever happened. They even got a reverse mortage a few years back even though they had bad credit.

Of course talk to a lawyer, but I think they may advise not to proceed with a BK.

[jessegirl]

But what about after one of them goes won't the credit companies try to sue the estate?

They cannot handle all the calls. My dad has alot of things wrong with him, inlcuding heart and numerous other things and i think that the phones calls will make him sick. They donot have caller id either. They do not like modern technology, if you know what I mean...LOL..

I know what they are going to have to go thru cause I am already discharged, but i think theres will be cut and dry, I just am worried with them going to the 341. But, I think this is there best bet. They have about 40K in cc's and dont make over 26K a year. and thats not including paying for medicare.

I am just wondering if they can lose there house, being its paid off. It is a co-op though and not sure how that works.

[willbfree]

I would take them in (and go with) for a free bk atty consultation and see what advice the atty gives. A good bk atty maybe can even help them become judgment proof with some planning and thus avoid the need for a bk. If a bk is necessary maybe cash in one of their whole life insurance plans to pay the atty fees. Without the debt they may have more left in the estate overall to deal with final arrangements.

[nodollarsnomo]

I wish I had the answer for you. I know that it has been several years since my parents defaulted on their cc's. They gave the collectors permission to speak with me about their debt and I just told them that they could not pay and they would not be getting any money from them. Mom & dad do have caller id, and if they do not recognize the number they do not answer.

I know how hard it is having elderly parents. I not only worry about their health, but I worry about them living on a fixed income. Just a few months ago I was able to help them pay for perscriptions, groceries and their home and auto insurance. Since my husband and I started having our own financial problems we have not been able to help and it just breaks my heart.

Is there an elder care advocate in the state where they live? They may be able to offer some advice.

[music12]

many states have legal aid with a specific department for the elderly. they may be able to help. call them or better yet find their office and walk in (if your parents can't come with you, maybe take their ID with you). good luck.

as far as i know, SS is exempt from absolutely everything.

[LuciluS]

O Jesse! Bless your heart! I know you've been thru the 'wringer' already and now your parents?

My father will be 90 in Dec. and he cannot remember what I told him yesterday. I know how you feel about the phone calls would 'affect your Dad'.

I think you've received some really good advice. Hope you will be able to set up some interviews and go with your parents. I know it worries you. Hang in there Dear!

Luci

[SuzieBK]

So sorry to hear about your parents' situation. I can't offer any advice, but in terms of their home, it sounds right to me. In a condominium or co-op situation, you own your walls on the inside, but not the walls on the outside, or the land. So, for instance, when we owned a townhouse in a condominium community, if the roof leaked, the homeowners association needed to deal with it. However, if the ceiling leaked, it was our responsibility. Make sense?

Good luck to both you and your parents.

[JRScott]

Since they live in a co-op, I'm assuming they own shares in the co-op?

I think you've gotten some good advice here.

Even though your own lawyer was expensive, and assuming your parents are in the same area, you might contact him and ask if he knows anyone that does pro bono work and explain your parents situation.

Otherwise calling the local governments branch on the elderly whatever it is called near where they live might possibly be able to recommend affordable legal aid for them

[dingdong]

Have you looked in to their state exemptions to make sure their assets are covered, like the CD and the equity in the Co-Op?

Also, you may have them look into a reverse mortgage. There is no qualifying credit wise, you just basically have to have enough equity in the property to borrow against. They would get a monthly payment based on the amount of equity in their home. It might make things easier on them, increase their income for a bit- it is basically using the equity in your home as income while you are still living. My mom has one, she is 74.

They probably wouldn't want to do it until after BK, but it could make their lives more comfortable , give them a little extra spending money, take a trip.

You know what they say, you can't take it with you.

[jessegirl]

thanks everyone for the really great advice. I am going to call the senior services in our area and see if there is any help for leagal services.

They do own shares in there co-op, so I am not sure if the trustee can take the house. I am going to ask my attorney.

thanks again.

[JRScott]

Good Luck Jesse