Does my Mom NEED to file?

[demismom]

I asked a question yesterday, but didn't really get much help because I think I asked the wrong question.

She's getting divorced. Surrenduring her home that is in a park. It's a very nice double wide with cathedral ceilings manufactured house. She can't afford it AND the lot rent so we found her another place to go. It's a retired community (apartment still though) where my Inlaws live as well.

Anyway, I talked with the management yesterday and they told me that if she has any civil suits and/or bankruptcies on her credit report (she filed 20 years ago) they won't lease to her. Sooooooooo, I think it's best she NOT wait until the house gets foreclosed on her, am I correct? I was hoping she COULD stay until she got evicted, but I don't think that would be prudent in her case.

Also, she only gets $653 a month from Disability and her SS check. That's it, that's all she has to live on. She does get food stamps of $150 a month, she has medicare and medicaid.

If she stops paying everything except what's necessary does she sound pretty judgment proof? I mean, I realize they can get a judgment, but will they be able to garnish ANYTHING?

She currently lives in Michigan, but will probably be moving to Indiana.

Thanx so much in advance!

[lrprn]

Sooooooooo, I think it's best she NOT wait until the house gets foreclosed on her, am I correct? I was hoping she COULD stay until she got evicted, but I don't think that would be prudent in her case.

Sounds like this new place in Indiana pays a lot of attention to credit reports. It's obvious they don't like bankruptcy - likely they won't feel good about a foreclosure either.

If she stops paying everything except what's necessary does she sound pretty judgment proof? I mean, I realize they can get a judgment, but will they be able to garnish ANYTHING?

I believe that SS and disability are judgment- and garnish-proof, but state laws often determine that. Best option is to ask a Michigan and an Indiana bk attorney to be certain.

Also with a divorce in the mix, that could complicate things too. Be sure that your mom gets a signed affadavit from her ex about who is responsible for which debts because the divorce decree alone may not be enough to protect her.

[JRScott]

As for the bankruptcy for your mom, she wouldn't need to necessarily file until after the foreclosure, so there might be time to get her into the new place.

What would happen at this new place if she was renting there and then found herself in bankruptcy?

I believe her income is judgment and garnish proof. Some of the low lifes might hit her bank account to tie up the funds for a while until she could prove it though.

[spell]

From your post I see:

1. She's in a house she can't afford.
2. She has a low income.

Unless there's more to the story, to the tune of an enormous amount of debt she'll never be able to pay off, I'd say "no" she doesn't need to file bankruptcy.

She needs to sell the mobile home.
She needs to get a job.

Have her sit down with the folks at Disability. They have lots of programs to rehab people back into appropriate jobs.

[Minnymouth]

If you mom can no longer physically work - you might suggest to her living in "assisted living" which is usually condos that are very nice............ and it's based on your income level.

Her being on limited income opens doors that some cannot use!!

I'm assuming that she has very little equity in the mobile home that she now lives in - thus resale is not an option.

You did not say how old you mother was......?? Any chance of her rehabbing and going back to work?

If not, then "look into" all her options available before you just go out and rent an apartment for her.....

If you can save her extra money by getting one based on her income it will help her financially.

[demismom]

Resale is not an option - it's been refinanced so many times. I wish she could work, that would solve alot of problems, but she physically just cannot work. Dialysis drains every bit of energy she has. She is 62 years old. I will call the County and see if there's anything we can do for her, but it'd be great to get her into the same complex my Inlaws live at. It's no longer based on income (it once was), but rent is inexpensive AND she'd probably qualify for Section 8, she already gets medicare, medicaid and foodstamps. I'm just worried about waiting too long to get her into something before anything else shows up on her credit.

[Minnymouth]

Don't misunderstand, assisted living quarters is not really a nursing home though some think it is.....

They are apartments (usually condos) for people who have medical problems, and often lower incomes.

If they have medical problems, someone will check on them daily to make sure they are okay....

Otherwise they leave them pretty much alone to lead their own lives.

And it is based on their income.... but its not like the old "low-income housing" where there used to be so many problems, etc.
Most of the people are retired and around the same age, so she would make friends of her own.

Yes, I would make the "move" before the bankruptcy hits the credit report..... you don't want any problems preventing her from finding a reasonable place.

[demismom]

Thanx Minny, I'll look into those as well.

[Granny]

Demismom,

Before you move mom to another state, double check the benefits she would receive. Different states have different types of welfare benefits. Her food stamp allotment could go up or down. The cost of her meds could go up or down, depending on the medicaid program, which is state run.

Also, Volunteers of America runs retirement centers here for seniors. Usually there is a waiting list, but they are usually very nice apartments. My uncle pay $100.00 a month some of his neighbors pay $25.00 per month. Unc's SS checks are larger than his neighbors, so he pays more. The rent is adjusted yearly based on HUD calculations. Their rent just went down, adjusted for increased utilities.

[demismom]

Thanx Granny - I did call Indiana and was told that her case in Michigan has to be completely closed before they'll help her and he wouldn't give me much info. I gave him her info (as much as I could remember) and he said it sounded like she'd qualify for food stamps and Medicaid. He gave me the number to the Housing Authority, and I've left a message, but haven't gotten a return call. I'll check out the VofA too!

You guys are all so wonderful.