Hospitalized with brain tumor . Should he file bankruptcy?

[anyadvise]

Hello,
My father in law has just recently been hospitalized with an inoperable brain tumor. He still has more testing to do, so we're really not sure how serious his condition is but the probability of him being able to care of himself seems pretty slim.

His children are trying to get his finances in order and are tossing around the idea of him filing for bankruptcy. He lives in Massachusetts and we all live in Colorado - Am not sure about Massachusettes BK law yet, but will be researching and any information you have would be greatly appreciated.

He has a townhome that he rents out a room. Tenent rarely pays rent and is always borrowing money, so currently he owes my FIL around $6000. Sister in law booted him out when FIL was admitted into the hospital.
He is a little underwater on his townhome and has $30,000 in credit card debt. He owns a 10 year old Ford explorer and a motorcycle (not sure of the value) Other than that he has no other assets.

Was wondering if anyone has any advise for us. If he files BK can they go after his social security ? His $14,000 life insurance annuity?

Thank you for any of your suggestions, insights and advise.

[frogger]

I wouldn't even consider thinking about bk right now. Too many unknowns, too many potential medical bills, etc.

Keep the thought in the back of your mind, but now is not the time. Keep us posted.

[SMinGA]

I am 99% certain that life insurance proceeds 'belong' to the beneficiary when paid out, not to the policy holder. As such, creditors of the policy holder cannot go after the life insurance policy benefits when they are paid out.

Filing BK would probably be a waste of time & effort right now. As Frogger mentioned, medical bills will continue to come in. Beyond that, it does not appear that your FIL really has much of an estate for creditors to pursue.

[blockhead]

Hello,
My father in law has just recently been hospitalized with an inoperable brain tumor. He still has more testing to do, so we're really not sure how serious his condition is but the probability of him being able to care of himself seems pretty slim.

His children are trying to get his finances in order and are tossing around the idea of him filing for bankruptcy. He lives in Massachusetts and we all live in Colorado - Am not sure about Massachusettes BK law yet, but will be researching and any information you have would be greatly appreciated.

He has a townhome that he rents out a room. Tenent rarely pays rent and is always borrowing money, so currently he owes my FIL around $6000. Sister in law booted him out when FIL was admitted into the hospital.
He is a little underwater on his townhome and has $30,000 in credit card debt. He owns a 10 year old Ford explorer and a motorcycle (not sure of the value) Other than that he has no other assets.

Was wondering if anyone has any advise for us. If he files BK can they go after his social security ? His $14,000 life insurance annuity?

Thank you for any of your suggestions, insights and advise.

Whatever he does it costs $35 to get a MA Homestead Exemption for up to $500K - wouldn't hurt at all to do that whatever he does

[sunshinepa]

Anyadvice

So sorry to hear about the cancer.....understand as I just lost my father to pretty much the same thing. At this point, do nothing except notify everyone he is hospitalized.........they certainly cannot come after your family for any debt he owes.

Your family has enough to worry about right now......taking care of him and seeing he gets the best care/treatment available are your priorities.....debt should be the least thing you worry about right now.