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bruce1941 Asked January 2015

What happens to credit card debt after going on Medicaid?

My sister-in-law recently went into a nursing home in South Carolina after broken hip and early dementia, and we have applied for Medicaid for her. She has debt from two credit cards and a medical expense on which she has been paying...she will no longer have funds to pay these, what should we do?

igloo572 Jan 2015
Bruce - there is another ? with detailed answers on this very topic, go to:

How do I stop the bill collectors, people threatening to sue?
Asked by bkeeper

It's in the "financial" section of MONEY & LEGAL.

JessieBelle Jan 2015
If your SIL goes on Medicaid, she will no longer be able to pay for her debts. The nursing facility will get all of her check except for a small allowance she is able to keep. If she is not married, creditors will have to wait until she dies to try to collect on the bill. If your SIL has assets that will go into her estate, creditors can file a claim against the estate to collect the debt if it is possible. Her siblings and children are not responsible for the credit card or medical debt incurred by your SIL. Collectors may call you, but you are not responsible. It may be best if your sister contacts her creditors to let them know her circumstances so they can close her accounts. Perhaps you could write the letters, then she can sign them. That may save them from trying to contact her or you.

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pamstegma Jan 2015
See a debt lawyer through the county senior services. They can help.

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