My mom was recently diagnosed with stage 4 liver and colon cancer and was given 2-3 years. She is currently in credit card debt for about 60K. She and my dad are retired and do not get a big paycheck from retirement. They own their home but still have a mortgage on it. There is probably about 60k equity in the home.
Can she claim bankruptcy and still keep her home and car?
I’m so sorry to hear about your mother’s diagnosis. Over the years I’ve had many clients who were given short times to live and managed to exceed those estimates. I hope you get to spend a lot of quality time with your mother in the near future.
The answer to the question is maybe.
Much depends on the state in which she lives and the bankruptcy exemptions they follow.
Even if the current exemptions don’t protect the equity, with some prior planning the situation can be modified to make a bankruptcy in six months to eliminate the other debt, a possibility.
I would suggest you and your parents go and meet with a bankruptcy attorney to come up with a plan of action to get this structured for a future bankruptcy.
After getting direct advice from a bankruptcy attorney who is licensed in your state you may decide to retitle the house in just your father’s name, consider a later bankruptcy filing for the unsecured debt.
I look at these situations with a spouse or parent who is facing death more as estate planning than debt avoidance.
Please find a good local bankruptcy attorney and have a free discussion about what bankruptcy would mean for your parents. Bankruptcy is the fastest way to get a fresh start for the least amount of money.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Do you have a question you'd like to ask me for free? Go ahead and click here.
- I Want My Money Back That I Paid World Law - June 30, 2022
- How Do I Get My Husband Back That Left Me for Another Woman? - June 30, 2022
- Financial Education Services Fighting Back Against FTC Over Credit Repair Allegations - June 30, 2022