Mother is 89 yrs old. Has dementia and just went into a nursing home. Applying for Medicaid. Just received a 1099 C form from PNC bank on a charged off car loan balance left $12,000. My mother has no assests, no income other than social security $12,000 a year. Has credit card debt of $4,000 and does have a cash value of life insurance of $4200. Will use the cash value of life insurance toward funeral expenses. In the state of PA , could the loan balance from 1099C be considered a ghost amount and not affect her Medicaid application?