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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2901
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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My 76 year old father is in financial trouble. He has $30K

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My 76 year old father is in financial trouble. He has $30K in high interest credit card debt. He lives in California in an assisted living facility and has a teachers retirement pension of $5000 and receives about $270 in Social Security per month. The monthly cost for the facility he lives in is about $3700 per month. I am wondering if a chapter 7 bankruptcy is possible in his situation? I understand that the rules have changed and it's more difficult to qualify.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 6 years ago.
Hi and thank you for your question. In the future, you can request me to answer any further questions. He can file chapter 7 if he passes the means test.
The means test calculates disposable monthly income when looking at the 6 months leading up to the case.
For a 1 person household, he would be above the median. Since the assisted living is so expensive, you would need to use a special deduction (up to the court) to see if they would include this into medical care, since there is a set amount for residence. Medical expenses are deductible. Talk to a local bankruptcy attorney for a free consultation to see if he can qualify for the ch7. if not, then he would need to repay a portion of the debt in chapter 13. Good luck to him. thanks
Customer: replied 6 years ago.
What portion of the debt would he pay in ch 13?
Expert:  Terry L. replied 6 years ago.
That depends. The end calculation of the means test spits out a # XXXXX when multiplied by 60 would be the amount required to repay to his unsecured creditors. Generally, can be from 10%-100% based on this calculation.
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