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Category: Estate Law
Satisfied Customers: 2579
Experience:  Estate planning and wealth preservation attorney.
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I live in , TX. I moved my parents, xx, to , TX last

Customer Question

I live in xxx, TX. I moved my parents, xx, to xxx, TX last May. My father passed away on 5/3/2015. I have researched all of my mother’s remaining debt. My father’s social security has stopped arriving. I am still working on resolving if there is any monies coming from them but have no resolution. They called my mother and said she had her xxx retirement and her own SS so she made too much money and would receive none for my father’s SS . My mother is living on half what they were recieving, together. Her income is $1,500/mth, and her expenses for mortgage and bills in $2,000/mth and that does not include doctor’s bills, food or medications.
The only assets they have is an car and the house they xxx, xx, TX xxx.
Her monthly bills are $913.80 for loans and credit cards (7) with a total due of $32,512.83.
Her VA mortgage and bills (xxxx) are $1,023.45/mth with a total of $87,816.00
Her total debt is $120,328.83.
My brother and I are covering her lack of income in the interim but I am recently divorced (5/6/2015) and will not be able to assist for much longer. I am seeking some guidance in what my options are to take care of my mother. I do have signed affidavits/poa’s from both of my parents to make medical and financial decisions for them.
Is personal bankruptcy and option for my mother? Are there any other options? Any guidance/options would be greatly appreciated.
Submitted: 2 years ago.
Category: Estate Law
Expert:  Attorney2020 replied 2 years ago.
Personal bankruptcy is definitely an option as a chapter 7 would discharge all of the unsecured debt such as credit card bills so that your mother can keep up with her expenses. Here are some Pros and Cons of bankruptcy: CONS PROS Bankruptcy will ruin your credit for some time to come. A Chapter 7 bankruptcy can remian on your credit report for up to 10 years. Although a bankruptcy stays on your record for years, the time to complete the bankruptcy process under Chapter 7, from filing to relief from debt, takes only about 3-6 months. So, the trade-off is a lasting mark against your credit in exchange for freedom from most debt. If you decide against Chapter 7 when it may be the right decision for you, your missed debt payments, defaults, repossessions, and lawsuits will also hurt your credit, and may be more complicated to explain to a future lender than bankruptcy. You will lose property that you own that is not exempt from sale by the bankruptcy trustee. You may lose some of your luxury possessions. Most state exemptions allow you enough so that most things you own will be exempt from bankruptcy, sometimes allowing more coverage to keep your property than you need. Additionally, you will get to keep the salary or wages you earn and the property you buy after you file for Chapter 7. You will lose all your credit cards. Your credit cards probably got you in this mess to start with, so it's hard to see that as a bad thing. You may also be able to obtain new lines of credit within one to three years of filing bankruptcy, although at a much higher interest rate. Bankruptcy will make it nearly impossible to get a mortgage, if you don't already have one There are lenders who specialize in lending to "bad risks," although that is an unfair characterization to make of someone who has taken a major step to solve financial difficulties. Declaring bankruptcy now might make it harder to do later if something worse comes along. For instance, if you complete the bankruptcy process under Chapter 7, you cannot file for another Chapter 7 bankruptcy for six years. The six years is counted from the date you last filed for bankruptcy. Declaring bankruptcy now can get you started sooner on rebuilding your credit. Although, you can only file under Chapter 7 once every six years, you can always get a Chapter 13 plan if there is another disaster before you are entitled to file for Chapter 7 again. You may file for a Chapter 13 plan repeatedly, although each filing appears on your credit record. Bankruptcy will not relieve you of your obligations to pay alimony and/or child support. Short of a court order from family court, nothing else will relieve you of your alimony and child support obligations. At least bankruptcy will alleviate many of your other financial obligations Bankruptcy will not get rid of your student loan debt. Nothing will get rid of student loan debt, and at least bankruptcy will prevent your lenders from aggressive collection action. You will have to explain to a judge or trustee how you got into a financial mess. Both judges and trustees have heard far worse stories than yours. You cannot file for Chapter 7 bankruptcy if you previously went through bankruptcy proceedings under Chapter 7 or Chapter 13 within the last six years. If, however, you obtained a Chapter 13 discharge in good faith after paying at least 70% of your unsecured debts, the six-year bar does not apply. You cannot file for Chapter 7 bankruptcy if a previous Chapter 7 or Chapter 13 case was dismissed within the past 180 days because: you violated a court order, OR you requested the dismissal after a creditor asked for relief from the automatic stay You can avoid these harsh limitations against refiling for bankruptcy by observing all court orders and court rules, and by not asking to have your case dismissed when a creditor asks for relief from the stay. Even if these limitations apply to you, they don't last forever. You're only prevented from refiling for six months. It may make sense to at least consult with an attorney prior to filing for bankruptcy to avoid limiting your bankruptcy options in the future. You may still be obligated to pay some of your debts, such as a mortgage lien, even after bankruptcy proceedings are completed. If you don't owe money on the type of debts that survive bankruptcy, the amount and number of debts that a bankruptcy court can relieve you from paying is potentially unlimited. If you file for Chapter 7 relief, but you have a certain amount of disposable income, the bankruptcy court could convert your Chapter 7 case to a Chapter 13, thus changing your plan to be free from most debts within four to six months, to a plan requiring you to repay your debts over the course of three to five years. Chapter 7 does not require that you have debts of any particular amount in order to file for relief. However, even if your case gets converted to Chapter 13, it can still improve your financial situation by obtaining more favorable terms to pay off your debts. With Chapter 13, you get to keep all of your property as well. I hope that helped.
Expert:  Attorney2020 replied 2 years ago.
Please ask any follow-up questions. Please rate my answer as that is the only way I will receive credit for my time and efforts.
Expert:  Attorney2020 replied 2 years ago.
I hope that helped. Please ask any follow-up questions. Please rate my answer so that I may be credited for my time. Thank you.
Thank you in advance for your cooperation.
Customer: replied 2 years ago.
You cost me 33 bucks for a cut and paste. OK, I get that. Sending me to the actual information on how to file myself... or the documents and process required.. oh, and remind me to wait until the hospital bills from the death comes in... might have been more informative... i did not rate you for i knew what you sent, already... because i don't think you want a "1" rating....anyway... would have taken you 15 minutes to send me a real response.. next time, maybe use this link: don't know... cut and paste google people should not be allowed on any "advice" sites without looking at the details of the situation... i am a perfect candidate to do this on my own... after i wait for the hospital bills... so, use this info next time and earn your money..sorry, very bitter daughter of a dead man....
Expert:  Attorney2020 replied 2 years ago.
With a request such as "Any guidance/options would be greatly appreciated." That is exactly what you got. Alternatively, you could negotiate with the creditors to reduce the debts owed under the premise that your mother intends to fie BK and the creditors will receive nothing if that happens. Good luck to you.