How to Get Out of Debt With the Get Out of Debt Guy » dying

My Husband is Dying and Can’t Pay the Student Loans. – Connie

Steve Rhode — Sun, 23 Oct 2011 13:22:04 +0000

“Dear Steve,

Our son has about $70,000 in student loans, my husband is the co borrow on all the loans. Our son is in the army and can’t pay them off. My husband has a rare brain disease and is dying, but for now he is still working but we have so many medical bill and other bill we can pay the student loans. We do not know how much longer my husband can work.

is they a way to get read of the student loans because my husband is dying, we have medical records that shows he is dying.

Connie”

The Answer:

Dear Connie,

There may be she options but the most important question I need an answer to first is if these are government backed or private student loans.

Post you answer in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Drive-Thru Funeral Home Offers Convenience But No Beer or Fries With That

Steve Rhode — Tue, 19 Apr 2011 22:08:39 +0000

From How to Get Out of Debt

If you live in Compton, California and you recently lost a loved one, this funeral home offers a unique approach for those that that want to have a viewing, “doesn’t she look good,” and make it very easy for people to attend.

I have to admit, it is an unusual approach but what the heck.

So for the ultimate option of saying goodbye to a recently departed, the drive thru viewing might just be the ticket. Of course maybe we’ll have webcam viewings next. At least they are more ecologically friendly since we don’t need to use expensive gas and more people can attend.

@GetOutOfDebtGuy

Will I Be Responsible for the Mortgage When My Husband Dies? – Barbara

Steve Rhode — Thu, 18 Nov 2010 14:33:47 +0000

From How to Get Out of Debt

My husband and I are in our late 50s and live in Florida. He gave up his home in a divorce settlement and then bought it back from his x-wife a few years later, before we married in 2009. The home remains in his name only, it is right side up, and he wants the home to revert back to his family members if he should pass. Although I would be allowed to stay in the home until I die, I could not afford the mortgage, taxes, and insurance so it is not an option. (His family members could not afford it either.) His health problems prevent him from qualifying for life insurance so I will get nothing in the event of his death, but I do have my retirement and I would relocate closer to family in Tennessee.

Could I be held accountable for the mortgage if my husband passed away, even though my name is not on the mortgage?

Barbara

Click here to help people to get out of debt.

This reader question was submitted for site members to answer.

This is your chance to be a hero and help out this person by providing your feedback and answer to the question. Post your response in the comments section below.

If you have a credit or debt question you’d like to ask just use the online form.

@GetOutOfDebtGuy

My Father Has End-State Renal Disease. Should He File Bankruptcy? – Nicole

Steve Rhode — Wed, 17 Nov 2010 03:10:27 +0000

From How to Get Out of Debt

“Dear Steve,

My dad has had a great paying job for years but has recently gone through a health situation that has rendered him unable to work at this point. He has end stage renal disease and other problems affecting his heart. He has $61,000 in credit card debt. When he was first hospitalized I called every creditor hoping that they would suspend payments for 2-3 months until we figured out the severity of his situation (my dad has always been very proud of his credit score) and could come up with a repayment plan. Well, of course, no one would help.

My father has a line of credit against his house and he owns a car. The house is worth $80,000 and he owes $62,000. I want to make sure that he will not lose his house. The lawyer I spoke with said he would not because he owes too much on it. All his taxes are paid for 2010 (property and school).

When should I file for him…..at the end of this year or beginning of next and how will this affect his tax return?

Nicole”

The Answer:

Dear Nicole,

I’m so sorry to hear about your father’s illness and his medical situation.

When you say he has “end-statge” renal disease I’m not clear if the prognosis is that he may not live much longer. If the estimate is that he may pass away in the next six months then he may not have to do anything. His debt will end with his estate and if the house is held in joint tenancy the other party will take possession of the property.

However, if you wanted to eliminate the stress from his end days by discharging this debt with bankruptcy then the question is really if he was expecting a big tax refund or not. But that’s kind of immaterial since if his days are limited you’d want to give him the best opportunity to put the debt behind him now and give him the best chance to enjoy what time he has left. In that case he should file bankruptcy tomorrow.

If you want, you can click here to find a local bankruptcy attorney and if you’d like a second opinion, contact Damon Day.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

My Husband Has Aggressive Advanced Cancer and Our Debt is Killing Us. – Gina

Steve Rhode — Thu, 11 Feb 2010 15:57:36 +0000

From How to Get Out of Debt

Gina

“Dear Steve,

We have a lot of debt and serious medical issues that are generating medical bills we won’t be able to pay.

We bought a new house 2 years ago and haven’t been able to sell the old house. It is rented for just enough to cover the first mortgage payment. We have a maxed out equity line on that house as well.

The new house is in a neighborhood in which the values have fallen some and there are many houses on the market that aren’t moving (NC).

We have $25,000 in student loans, $15,100 car loan, $58,000 in unsecured debt and a loan on the 401k of $7700.

We are paying everything on time but have no savings. My husband has very recently been diagnosed with an aggressive, advanced cancer and has just begun treatments.

We have health insurance but it is a high deductible plan with an HSA that we just started about a year ago so this first round of bills will wipe it out. The hospital that is doing the treatment is out of network so we will have to pay 50% after we meet the annual $12000 out of pocket maximum.

We have considered walking away from the mortgage and keeping other things current or just filing bankruptcy and trying to start over. Right now we make about $98000 annually but the loan on the 401k eats up $600 per month and we can not get them to let us discontinue the payroll deduction as some of the money is company contribution and they tell us that we can’t have access to that prior to age 55 except through the loan. We really don’t know what to do and the stress is awful.

Especially in light of dealing with my husband’s serious diagnosis.

Given our situation, what is our best course of action. Is there any legal way we can stop the payroll deductions so that we don’t have to file bankruptcy or lose the house?

Gina”

The Answer:

Dear Gina,

First off, my prayers and hopes go out to you and your husband to beat his cancer.

I am so sorry that you have to deal with the financial pain at a time of emotional and physical pain. Unfortunately, it is a situation faced by many.

Now my suggested course of action is from a holistic point of view and individually the parts might not seem sensical but as a whole I think they make sense.

You’ve said that your husband has advanced and aggressive cancer. Not that I know anything more about his medical condition, but for the sake of this discussion, while I hope that he has a full recovery, sadly I’m going to assume the worst.

If your husband were to pass away his payroll deduction for the loan would cease and the plan would be paid out.

Additionally, if he were to pass away, I suspect that you will have some amount of life insurance coming to you, either from an individual policy you may have or an employer sponsored group insurance policy.

Probably one of the most important areas to keep stable at this time, is the house in which you both currently live. I would image that not having to deal with moving right now, would be a blessing for the both of you.

My primary goal at this point is to set you up with a plan that will minimize the stress to help you to deal with the cancer, and to prepare you in the event that he were to pass away.

I think the most logical approach in that case is for you to seek legal protection under chapter 13 bankruptcy. Why a chapter 13? This should allow you to regroup your finances to what you can afford in the situation. It will also protect you from any collection activity at a time when you least need that stress.

But I think it is imperative that you immediately find a local bankruptcy attorney and discuss this situation openly and honestly from the point of view of the life you need to live under the circumstances you have. The attorney will see that with the massive out of network bills still coming that more debts will be piling up from that so a chapter 7 bankruptcy probably does not make sense right now. A good plan of action and coordination with your bankruptcy attorney is going to be just as important as good medical right now.

Using this approach you will also be able to stay in your house and keep your car so you can get back and forth for medical treatments.

You may want to think about handing the rental house back to the bank and including any debt from that in your bankruptcy.

His student loans will not extend past his death if they are government backed loans. In the meantime if he is totally or partially disabled you could apply for a discharge under that program. Here is the form.

In bankruptcy, any life insurance proceeds should not be attached by your creditors. If it does appear that your husband will regrettably pass away, then talk to the bankruptcy attorney about converting your chapter 13 bankruptcy to a chapter 7 bankruptcy at that time and include the remaining medical bills that can’t be paid.

I can only steer you based on what you’ve shared with me. I strongly suggest that you print out this question and answer, contact a local bankruptcy attorney, schedule a free appointment to go in and talk, and discuss this approach and your situation with the attorney.

I just want for you to understand, that bankruptcy in this situation is not a failure route. It is a route that will allow you to minimize your stress, get the most consumer protection, allow you to make your time left with your husband the best it can be emotionally and without the stress of this financial situation, and prepare you for debts to come.

Big Hug!

@GetOutOfDebtGuy

Get Your Prostate Checked to Avoid Debt. – Robert

Steve Rhode — Fri, 22 Jan 2010 19:16:45 +0000

From How to Get Out of Debt

“Dear Steve,

I am a 49 year old male who was diagnosed with prostate cancer eight years ago (Guys…..get your prostate checked early and often! I know that men hate the exam….but if caught in time, it is one of the most curable cancers…..so much for my soapbox).

When mine was discovered, it had metastatized to my bone, spine and brain…..and I was given 6 months. After many long years of chemo/radiation/etc….I am still kicking. However, I lost my beloved job in the airline industry, and even though I am fortunate to have insurance, the years of treatment and medications put me in remission, and into debt to the tune of $70,000.00 (credit card).

It was not the wisest move….but one of desperation. Having run through my 401K/savings, I finally rented out my home for the income and to be closer to my treatments. Long story short…..my cancer has moved to my liver and lungs. I have managed to pare down my debt by $36,000 through debt reduction. I still have around $34,000 of debt left.

My question is…i can no longer afford the $1,250.00 per month I was pumping into reducing my credit card debt. I am not extravagant….but do have a funeral to arrange, and would like to travel a bit in my last days. I cannot declare Chapter 7 since I have a home over the exemption in Arkansas.

What can the banks do to me (besides place a judgement on my house) if I just stop paying. I realize this sounds selfish (and probably is), but this debt is making me more ill and unable to enjoy the time God will give me.

I have tried to work, but my treatments eventually get the best of me. My income is strictily SSDI, pro-rated pension and a private LTD policy. I have no family….and thus responsible for no one but myself in this matter.

Any opinions would be greatly appreciated.

My best to all of you. Robert”

The Answer:

Dear Robert,

Stop paying the cards and go enjoy the final days of your life. Once you fall behind the creditors are going to try to collect and may sue you but it is what it is. They can’t toss you in jail or take anything from you. It does not sound like you’ve got a big account full of cash sitting out there. So what if they put a lien against the house, right?

Unfortunately it sounds like it is time to plan the death cruise. So many people I’ve worked with over the years have done exactly the same thing. They’ve seen the end is nearing and they plan a last big trip, and it’s typically a cruise, thus the death cruise reference.

If I could wish any one thing for you it would be for you to find acceptance that the debts are going to be past due, and put that aside in your head, focus on what you need to do in your upcoming last days. Not a single compassionate and reasonable person is going to blame you.

Rest easy my friend.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Can’t Afford to Save My Life And Pay My Credit Cards At The Same Time. – GPOT

Steve Rhode — Sun, 17 Jan 2010 23:31:48 +0000

From How to Get Out of Debt

GPOT

“Dear Steve,

I have more than 10 credit cards. I am self employed and up to today, I have been able to meet all my payments. Because I’m self-employed I have to health insurance. I have just been diagnosed with prostate cancer and I have been given no hope. As you can imagine my family doesn’t want me to give up, but since I have no health insurance all my medications and doctors visits are coming out of my wallet. I am now in a situation where I can’t afford the two things. Do I save my life and keep working for my family or do I pay my credit cards?

What will happen to my wife and I, if we do not pay our credit cards?

Any advice is very appreciated.

GPOT”

The Answer:

Dear GPOT,

The answer is clear, you should stop paying the credit cards and use the money to attempt to pay for medical treatment.

For more information if your wife will have to pay your bills, see Will My Family Have to Pay My Debts From My Life Insurance After My Death? – John.

If the debts are joint, in the name of you and your wife, she will be responsible for the balances due, now and after your death.

It is unclear if you do currently have health insurance, if you do, keep up those payments. Keep the health insurance current before you pay any credit card bill.

It is very possible that your wife may have to consider bankruptcy to deal with the legacy debt after you pass. This is common and a way that many people deal with the residual debt that is no longer sustainable.

I would strongly suggest that you and your wife go now and meet with a local bankruptcy attorney. Not with the intention of filing bankruptcy now but to plan for bankruptcy when the medical bills get to be too much and if your estate will not pay your bills when you die.

With some planning in advance now it will leave your wife better prepared to deal with the financial issues that may come latter and it will help you to have some peace of mind that the money problems are going to be resolved with a plan after you pass away.

The bankruptcy lawyer can also better advise you if bankruptcy might be in order for you now if you have joint debts, depending on your current assets. Meeting with a bankruptcy lawyer now may not be on the top of your fun list but it is logically prudent to deal with this squarely, now.

Big Hug!

@GetOutOfDebtGuy

I Have No Job and Just Diagnosed With Terminal Cancer. – Carrole

Steve Rhode — Tue, 22 Sep 2009 23:10:09 +0000

From How to Get Out of Debt

Because of the volume of submitted questions, I am behind in personally answering every single one. I need your help. I am publishing the question below for you to answer. Please help this person by adding your response and advice in the comments section of the original question. Click here.

“Dear Steve,

Own a home with 30000 equity, have no job and have just been diagnoised with terminal cancer. No liquid assets. No insurance. I have no family to borrow from. I am 55 years old. Took early retirement. Rolled over retirement to funds I can not touch for 5 years.

Can i save my house? can i gain access to my investment and is that the right thing to do? where can i go for emergency help?

Carrole”

Read the full article at GetOutOfDebt.org, click here: I Have No Job and Just Diagnosed With Terminal Cancer. – Carrole

We Are Sinking Fast And Using Credit Cards For Daily Purchases. – Valerie

Steve Rhode — Sun, 01 Feb 2009 21:20:27 +0000

From How to Get Out of Debt

URGENT QUESTION!

Valerie

“Dear Steve,

I cried all through writing the question. Situation is that we’ve always paid our credit card bills and always been on time and lately our credit score keeps getting worse and worse. Our mortgage/taxes/insurance costs $3000.00 per month so I don’t want to default on that. Yes, we have remortgaged too many times. Presently, I’m making more-than-minimum payments on all (maybe 20?? credit cards) We only buy groceries, gas and Christmas on our cards now. We are both working 40+ hour weeks and are 54 and 55.

We are getting tired and old and feel, like we’re not running as fast as the treadmill is rolling. We would gladly sign up to pay off all of our cards and NEVER use them again, but right now, we need them just to buy our normal daily supplies so that we can pay our bills with our paychecks.

We feel like we are fighting a losing battle. If we stop swimming for one second, we will drown. Is there any credit card consolidating things that are legitimate.? None of them ever wanted to help my daughters until they were already several months overdue.

I don’t want to make things any worse. Electric bills and oil bills are the only things that are getting paid out of pocket and oh yes, doctor office co-pays. I could go on for days. I just need some relief and don’t know where to turn. Also, we have life insurance payments that are falling behing which means that those will close soon and then we will not be able to leave anything to each other, which will mean that the house will go; as it won’t be paid off till we are 80 something! HELP! Any good ideas?

We’ve really lived a good life and now I feel like some kind of bum!

Valerie”

The Answer:

Dear Valerie,

As an outsider I probably have a different point of view since I’m not right in the middle of what feels like a crumbling life. So let me offer some observations and suggestions.

All debt problems can be resolved in one way or another. Now that might not mean that you can wave a wand and get everything you want, but we can put a plan in place to allow you to move past the fear and pain you are experiencing now.

What I ‘hear’ when I read your question is someone who is slowly drowning under growing debt. Unless you’ve had a reduction in income, I would bet that your debt has been growing, slowly, over time. You debt has finally reached that level where you are forced to deal with it. Imagine it like this, it is a lot like a room that is filling slowly with water. You don’t begin to really panic until your head is bumping against the ceiling and the air pocket is getting smaller and smaller. That is when you freak out because you are convinced you are going to drown.

The best way to attack this situation is to prioritize your obligations first, so let’s see what we can get to fit within your family income. Whatever does not fit, will have to be dealt with.

So let’s first pay housing, utilities, food, life insurance, medical insurance, transportation expenses, etc. and factor in $100 a month to put into a boring old savings account for emergencies. And when I say to save the money each month, I mean it. Save! You’ve got to put your safety and security first. Nobody else will and if you just let your creditors continue to take from you, you will be homeless and older, with less chance to save.

Now, once you prioritize your expenses I bet you will find that you don’t have enough leftover to make minimum payments on your credit cards. How can I be so sure about this? Well the clue was when you said you had been using the credit cards to pay for “normal daily supplies” and that your credit score had been getting worse and worse. Your credit score is sinking because you are becoming a higher and higher credit risk with escalating debt and maybe a missed payment here or there.

And while you had the best of intention in paying a bit extra each month, it might have helped emotionally but it really only sinks you more. You send $20 to the card but have to charge $20 to get by. I’m not blaming you, just pointing it out. There is no reason to waste a perfectly good mistake if we can learn from it.

Is credit counseling or debt management legitimate you asked. Well, it is legal but it is not the best approach is you are slipping under the strong riptide of overwhelming debt. It is better to turn to credit counseling if you are behind now due to some event that just put you behind and now you need to get caught up. That’s not your situation. Yours was not a one time event. It is a recurring monthly event.

Sadly I think we need a more formal intervention here and you need to seriously consider bankruptcy. There is a way that you can go bankrupt, in a Chapter 13 bankruptcy, where you can keep your house, so don’t worry about that.

Just about now your heart is beating fast and those old feeling of being a bum or a failure are racing through your mind. Those feeling are not reality. They are emotional thoughts in response to a difficult situation and those feelings are normal, just not logical.

We have all been conditioned over all our lives to repay our debts, honor our promises, and make at least the minimum payments. If we don’t then we are supposed to fear what will happen to our credit report and credit score. We are supposed to feel like a loser for being in collections and we don’t want the debt collector calling us and judging us.

So to avoid all those feelings and emotions we keep doing what we think is expected of us. We make the minimum payments by any means possible and we hope that things will get better tomorrow. But that does not mean that is the right thing to do.

Valerie, if you stay on your current path you will increase you stress and your chances of being ill or dying from this debt stress. You’ll die without life insurance that you dropped to make the credit card payments and the remaining spouse will not be able to afford the house and they will lose it. And guess what, the credit cards are not going to get paid anyway.

Let me ask you this. Do you have a greater responsibility to yourself to fix the past or fix the future so it is safer? The right answer is, the future. We can regret choices and decisions we’ve made in the past but that does not change where we are going to rest our head tomorrow, how we can going to stay warm or cool, and what we are going to eat.

So Valerie, if you are not prepared to honestly face a bankruptcy attorney and consider bankruptcy, then click here for debt management information. You can go on a debt management plan if you like, try it for a few months and see if you are able to afford it and get ahead. Then, if you discover that you are still sinking, you can go see the bankruptcy attorney for a free bankruptcy consultation and hold your head high knowing that you tried everything before filing bankruptcy. Some would criticize me for saying that. They would feel that I was encouraging you to throw good money after bad in a credit counseling program but I don’t look at it like that. If you go into a credit counseling program and fail, then you’ve simply made an investment in knowing that it’s not going to work for you. You won’t be able to look back with regret and knowing that has some value to everybody.

If you decide to try the debt management route I would still urge you to click here to get a free bankruptcy consultation so you can be more informed about what bankruptcy really means for you without assumptions and emotional fear. Only once you have fully explored both options will you be able to make a good informed decision that is right for you.

Valerie, don’t cry. There is not one logical reason for you to live in fear of your debt from this point forward. Now is the time to take action, implement it and make every day from this point forward, safer.

I’m sending you an extra big hug.

Steve

How to Get Out of Debt With the Get Out of Debt Guy » dying

My Husband is Dying and Can’t Pay the Student Loans. – Connie

The Answer:

Other Related Articles to Read

Drive-Thru Funeral Home Offers Convenience But No Beer or Fries With That

Other Related Articles to Read

Will I Be Responsible for the Mortgage When My Husband Dies? – Barbara

Other Related Articles to Read

My Father Has End-State Renal Disease. Should He File Bankruptcy? – Nicole

The Answer:

Other Related Articles to Read

My Husband Has Aggressive Advanced Cancer and Our Debt is Killing Us. – Gina

The Answer:

Other Related Articles to Read

Get Your Prostate Checked to Avoid Debt. – Robert

The Answer:

Other Related Articles to Read

I Can’t Afford to Save My Life And Pay My Credit Cards At The Same Time. – GPOT

The Answer:

Other Related Articles to Read

I Have No Job and Just Diagnosed With Terminal Cancer. – Carrole

We Are Sinking Fast And Using Credit Cards For Daily Purchases. – Valerie

URGENT QUESTION!

The Answer:

Other Related Articles to Read