How to Get Out of Debt With the Get Out of Debt Guy » husband died

My Husband Died. How Can I Get Creditors to Stop Calling Me?

Consumer — Sat, 14 Apr 2012 19:47:58 +0000

Hi ! MY NAME IS LILLIE, In the state of Tex. old bills 4 yrs. or more should be desolved. and a lot of those bills was here when my husband was living. My husband took care of the bills, In 2001 he got colon cancer & he died in 09. how can I get the creditiors to stop calling me. I change my number and that do not help……. I have no money, my husband was my support…WHAT CAN I do . PLEASE HELP ME……

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My Husband Passed Away. Can I File My Taxes as Single Now? – June

Jim Buttonnow — Tue, 06 Mar 2012 19:34:27 +0000

From How to Get Out of Debt

“Dear Jim,

my husband passed away

we always filed jointly..can I file as being single this year? will I have to file his income tax…what is the best root to pursue?

June”

The Answer:

June:

Thanks for your question.

First of all, I am sorry for your loss.

Your first question: Can I file jointly with my deceased husband for 2011 (i.e. the year he died)? The answer is yes. If your spouse died during the year and you did not remarry during 2011, you may still file a joint return with that spouse for the year of death.

Your second question: Is it more advantageous to file jointly or separately for 2011 (i.e. the year of your husband’s death)? In most circumstances, it is more advantageous to file jointly as the tax rates are lower for joint filers. If you do decide to file separately for 2011, your deceased husband’s return would be filed also using the “married filing separately” filing status. For 2012 returns, you may file qualifying widow with dependent child if you qualify or head of household or single, depending on your circumstances.

The best bet for the lowest overall tax bill is filing jointly.

I hope this helps.

Jim

Jim Buttonow is one of the resident debt experts here at GetOutOfDebt.org that helps people for free. Jim is a licensed CPA who spent 19 years with the IRS coordinating large compliance teams of IRS agents and specialized personnel. In the last 5 years, Jim has invented consumer and practitioner software and treatises on how to address many different tax issues. He has also represented many people before the IRS examination, collection, filing, and appeals functions. He currently assists taxpayers on an active pro bono tax practice aimed at serving people in need. He can be reached at IRSMind.com.

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

Husband Died. No 401K. No Life Insurance. Should I File Bankruptcy? – Patty

Lewis Roberts — Tue, 31 May 2011 16:04:55 +0000

From How to Get Out of Debt

“Dear Lewis,

i lost mt job in feb 09 did not find work until sept 09. though my husband worked we where not able to make ends meet.

we have still been struggling to make ends meet even after i found a job. but in jan 2011 my husband died, no life insurance, no 401 k.

now in may i lost mt job. i get 1300.00 a month unemployment. i am not able to pay all my bills, credit cards, student loans, and other loans. more or less just mt living expenses.

should i file for bankruptcy?

Patty”

The Answer:

Dear Patty,

I am sorry for your loss. I am also sorry for the debt issues that you need to address as well.

Nowhere in your post does it say how much debt you have. Credit cards? Student Loans? And I am not sure what “other loans” means or how much that category totals.

But whether someone should file bankruptcy is almost always on a case by case basis. Some people don’t make too much money, but should not file bankruptcy because they don’t have much debt (it is relative), or debt they cannot shed in bankruptcy (like student loans or certain tax debt).

But with your income, and just meeting basic needs, I would think bankruptcy might be a good option. But I would still like to know some of your debt amounts to better understand your debt issues.

You can post your answers and updates in the comments section below.

My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.

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

Can the Creditors Force My Mother to Sell Her House? – Leigh Anne

Steve Rhode — Fri, 27 May 2011 19:43:03 +0000

From How to Get Out of Debt

My step-father recently died and my mother is living on disability and now only a small portion of his social security and retirement. He only has 41K left in retirement. The company he worked for went bankrupt. She has no other income. They have a house payment which she can still make. She can afford her utilities and groceries with around $200 dollars left each month if she has no unexpected expenses.

She cannot afford her two credit card payments. They are now in collection with companies that say they are attornies (and may be). Can they take her to court and force her to pay the debt? She has no other income then what I mentioned. Can they take her house or force her to sale it?

They have no equity in the house because it is not old enough, and they haven’t made enough payments for it to matter. I have been speaking with the two collection agencies and they are horrible people. My mother is afraid of them, and when she speak s to them she becomes extremely distraught. She is still grieving over the loss of her husband as his death was unexpected, and she has just realized the financial mess they were in. I don’t know how to handle these collectors. Any advice would be appreciated. Thank you

Can the credit collectors take my mother to court. Could they force her to sell her house?

Leigh Anne”

I’m currently backed-up on answering questions so I’m posting some of the questions here for you to help answer.

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

@GetOutOfDebtGuy

My Husband Died With Debt in His Name. Do I Have to Pay It? – Teresa

Steve Rhode — Wed, 16 Jun 2010 20:03:49 +0000

From How to Get Out of Debt

“Dear Steve,

Married 25 yrs. & my husband always paid the bills, he died on 25 Apr.2010. I live in Ca., no life ins., he was unemployed for over 1 yr. Our house is almost in foreclousure, & I’m trying to catch up on the payments right now, so that I’m not out looking for an extra lg. cardboard box to call home. Needless to say I am not prepared to pay his credit card bills, that I just found out about. They were in his name only & I was not a signer on the acct. Am I responsible? As soon as I have the house payments current I plan on filing chapter 7.

This is a 2 part ? (1.) My husband died & he had credit cards ($23,000.) only in his name & I’m not listed as a signer. Am I required by Ca. law to pay them? (2) Right now I’ve got a garnishment on my paycheck from a debt collector who didn’t even bother serving me papers for court until the judgement was granted. I owed 3500.00 to orgin. creditor & G.C.F.S were granted 10,700.00 that I’m paying, they have collected 10,302.00. I contacted the sheriff & they said I still owe 2,500.00, How can that be? And is there a fast way to get them to stop now? I even have the irs billing me because he didn’t take taxes out of his unemployment.

Teresa”

The Answer:

Dear Teresa,

The issue here that complicates the situation is that you live in California, which is a community property state. It is my understanding that in California you may be held jointly liable for debt incurred by either partner during the marriage.

The bottom line here is you should not rely on what anyone has to say about this, including myself. Find a local attorney and ask them about the status of his debt. Community property states make a clear answer very muddy.

If it turns out you would be responsible for his debt, talk to your bankruptcy attorney about resolving it in the bankruptcy. And the sooner you file bankruptcy, the better. At least the bankruptcy would terminate the wage garnishment.

You can click here to find a local bankruptcy attorney if you don’t have one. You should not have to wait till your mortgage is current to do so.

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 Mother Was Recently Widowed and Lost Half Her Income. – Mo

Steve Rhode — Wed, 17 Mar 2010 22:06:45 +0000

From How to Get Out of Debt

“Dear Steve,

My Mother who is 68 yrs. old was recently widowed. Her and my step-Father were already on a limited income. She gets s/s beniftits of approx $800.00 per mth. Along with a small Retiremet check of $110.00 per mth. She will now loose the $900.00 of my Step-Fathers S/S income. Basically Half of her Montly income wiped out.

The Death benifits fom his life insurance was enough to pay for the funeral and leave my mother with a small cash pay-out. Somewhere in the range of $1500.00 to $2000.00. Together they have approx. 13,000.00 in Credit card debt. Her minimum montly payments are about $275.00 per mth. Can you help me with your knowledge? So I may attempt to dig her out of this whole? I am willing to help her. However, I need some advise on the best way to cut the debt? Lower the High Intrest on the cards And Lower the payment so We can set her up an budget.

Her home is paid for. She has 2 used Vehicles both pad for. However, Neither Vehicle holds enough value to secure the debt balance. And in my oppinion a Personal Loan secured by Autos, The intrest rate would still blow her out of the water.

Even though The Intrest Rate would dropped dramatically , We Really Prefer not to mortgage the home or take out an equity line of Credit to Pay-off the cards thus turning un-secured Debt into Secured Debt. I would like to add that she presently has A-1 Cerdit and is Current on all her household bills including the Credit Cards. We are simply attempting to head this off at the pass so to speak? In order to avoid late fees, and higher intrest rates in the coming months.

I guess my question to you is this. Are there any Government plans in the Bail-out projects, that would provide some relief for Eldery widowed individuals. Perhaps something in place that we could negotiate the principal down and cut or eliminte the Intrest?

Mo”

The Answer:

Dear Mo,

There are no government backed plans to reduce what she owes or eliminate the interest except bankruptcy. Bankruptcy is a legally sanctioned solution.

A debt management program or credit counseling program may be able to reduce her interest rates but the payments will stay about the same as they are now. I don’t know how much of a help that is either.

Are you willing to help her make some of the payments on this debt? But with her limited income I’m wondering how much, if any, she can really afford to pay each month? I’m concerned that any solution that will require her to make a monthly payment to dig herself out of this hole will simply be too much for her.

Was this debt joint with her husband or only in his name?

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

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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 Went Bankrupt Five Years Ago. I Don’t Think I Can Do That Again. – CurlyGirl

Steve Rhode — Wed, 20 Jan 2010 15:03:01 +0000

From How to Get Out of Debt

CurlyGirl

“Dear Steve,

I’m current on all my credit card debts, but the $700 a month in minimum payments (on about $10K total in debt) is killing me. I was laid off from a good job 2 years ago and have been freelancing ever since, so my income is irregular, but still enough to live. I’m doing without the bare necessities some months to keep those credit card payments current.

I had a successful bankruptcy five years ago; this debt has all accumulated since then. I just lost my husband to cancer and would gladly file bankruptcy again, to get a fresh start, but I don’t think the courts will let me. From your articles, it sounds like debt counseling wont’ lower my monthly repayments, either. What can I do?

CurlyGirl”

The Answer:

Dear CurlyGirl,

Jump in the car and peddle yourself back down to the bankruptcy attorney office. Last time you probably did a chapter 7 bankruptcy, this time you can do a chapter 13 bankruptcy. You’re just not eligible for a chapter 7 bankruptcy again so soon. But not to worry, the chapter 13 bankruptcy will give you a payment plan within your income.

I’m sorry to hear about the loss of your husband to cancer. What a shame.

Big Hug!

@GetOutOfDebtGuy

Deceased Spouse Left $33,000 Worth of Credit Card Debt. What Can I Do? – Judy

Mike Killian — Tue, 24 Nov 2009 16:56:00 +0000

From How to Get Out of Debt

“Dear Steve,

My husband passed away rhe end of 2008. I had been iill in 2007 and was not working. Other than the horrible fact he died, I did not know we were in financial trouble. Two days after he died, I opened mail I had never seen and found out he had been carrying close to $30,000 in credit card debt, moving it around for better interest but always making the payments. His credit score was even higher than mine which at the time was 776. I was advised it was not my debt and did not pay. I live in California and now they say it IS my debt and coming after me. I then found out he had drained our retirement and borrowed against his life insurance.

I live in California and the credit card companies are saying it is now my debt even though I had never signed for the cards but he had made me an authorized user. I didn’t know the cards existed. Now they have hit my credit rating and are threatening terrible things. I have tried to find work, but stand in line.

I am going to be 69. His pensions died with him and social security is very low. I am terrified. Trying to make it through the pain of his death is so horrible and this has made it unbearable. It is affecting my health.

I don’t know what to do. Can you help? Should I go to debt consolidation, borrow money from a friend, or hire an attorney. It’s affecting my health.. I do not think I will last this out. I shake every morning facing the day. Can you give me advice?

Judy”

I asked my friend Mike Killian to answer your question for you. I wanted to make sure you got an answer as quickly as possible as I’m a bit backed up at the moment. I’ll be watching the comments on this question and be around to help if you need me.

Big Hug!

@GetOutOfDebtGuy

Dear Judy,

As a senior and a widower I can truly empathize with your situation. Let me see if I can assist.

First of all it sounds like your spouse took great care in maintaining good credit and it is simply unfortunate that the debt did not get paid down. But now we must deal with realities rather than “what if…”. I think it the soundest advice to find out from an attorney for absolute certain whether you are responsible for this credit card debt. Each state can have unique legislation and that is the 1st chore. Obviously if legal advice says “no”, then you do not have a concern. But if legal says “yes”, then you need to consider a couple of options.

Lets consider your options. Of course borrowing from a friend would be the easiest solution but do you really want to do that. Borrowing usually has to be paid back and I am not certain you would be too much better off. Additionally, borrowing from a friend can very often strain the relationship and I doubt seriously that you need any strained relationships especially now.

Debt consolidation is another option except where will you borrow from? What will you use as collateral? How will you pay it back?

You did not mention if you have any assets like a house but it seems to me that when you ask the attorney about whether you are obligated to repay that debt, you should open the door to a free counseling session to discuss bankruptcy. Under chapter 7 the debt could wipe out entirely or chapter 13 would arrange for a repayment or forgive part of the debt depending on your circumstance. By declaring bankruptcy you can put all of this behind you and begin the very import process of closure and healing.

I do wish you peace of heart.

Sincerely,

Mike

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

My Father-In-Law Died and Left My Mother-In-Law Deep in Debt. – Sherry

Steve Rhode — Fri, 09 Oct 2009 17:41:17 +0000

From How to Get Out of Debt

“Dear Steve,

My father in law passed away and my mother in law has been left with an enormous debt. we did not realize they were this much in debt and are trying to figure out the best option for her.she is 73 yrs old. just to make her payments each month she is 500.00 short. she has a mortgage payment 950.00, home equity payment 150.00, about 6-7 credit cards estimated 15,000.00 total balance. plus all utilities and insurances.

Would like to know at her age and the amount of debt she has what her best option would be; debt settlement company, bankruptcy or some other option.

thanks

Sherry”

The Answer:

Dear Sherry,

I had the following questions that I’d like for you to answer before I can answer your question. Please post your answers in the comments section of your question. I’m looking forward to helping you for free.

Is this residual debt, joint debt in both of their names or was it in his name alone?
What kind of debt and how much are we talking about is the problem debt?

As soon as you can post the answers to my questions above I’ll be able to help.

If any reader wants to offer advice in the comments section please feel free to participate.

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 Died and My House Was Destroyed by Hurricane Katrina. – Sandy

Steve Rhode — Tue, 03 Feb 2009 21:35:39 +0000

From How to Get Out of Debt

“Dear Steve,

My husband passed away 4 years ago and the following year hurricane Katrina severely destroyed my house. I FINALLY sold my house May 2008 for peanuts, but had to live off that money due to being unemployed since Feb. 2008. I draw
a pension from my late husband which is exempt from any garnishments. I’m not a dead beat. Bad things happed to good people.

I’m considering filing for bankrputcy but, I’m considred judgement/collection proof. I’ve spoken to several bankruptcy attorney’s and get conflicting answers.

Sandy”

The Answer:

Dear Sandy,

I’m so sorry to hear about the loss of your husband and your home. I can’t imagine how stressful that all was.

Thankfully you do have that pension from your husband. I know a very kind woman who had her husband pass away the day he got the forms to sign for his wife to get his pension in case he died. He left them at work by accident and was going to sign them the next day when he returned to the office. He never did.

If an attorney has told you that you are “judgment proof” because your income from the pension can’t be garnished if a creditor sued you, I believe that. But, and here is the big but, being judgment proof does not stop the collection calls, letters, notices and all the other nasty stuff that goes along with being past due on bills.

Even though you may be technically judgment proof it might still be worth considering bankruptcy simply because it is a legally recognized way to get your creditors to shut up and get off your back.

From what you’ve described about your situation, I don’t think your income situation is going to change and if you don’t go bankrupt then you’ll simply have to endure the collections aggravation you’ve been living with.

So for me, in a situation like yours, bankruptcy is less of a debt reduction strategy. It is however an appropriate quality of life tool to consider since it will close the door forever on those debts you are unable to pay. It will allow you to move ahead in your life without any further pursuit by creditors, and that seems reasonable in your situation.

Does that make sense?

Big Hug!

@GetOutOfDebtGuy

How to Get Out of Debt With the Get Out of Debt Guy » husband died

My Husband Died. How Can I Get Creditors to Stop Calling Me?

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