Follow
Share
Read More
This question has been closed for answers. Ask a New Question.
Speed, did the elder law attorney advise you to become familiar with the Fair Debt Collections Practices Act? If not, it would be advisable.

ftcenforcementrulesrulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text

Just read one section at a time. There are some specific practices that have to be followed, and doing so will help you. It's also helpful to know what debt collectors can and can't do.

I assume your name isn't joint with your husband's on the credit card, i.e., you don't share privileges and liability jointly?
Helpful Answer (1)
Report

Yes. My husband had his own business. Hoping our elder atty will handle any letters or phone calls we will most likely start getting once the credit cards aren't paid on monthly. It will be worth his fee if he can help get us out of this mess. Just hoping Medicaid application isn't affected. Thank you all very much for your input.
Helpful Answer (0)
Report

was he a sole proprietorship?
Helpful Answer (0)
Report

It sounds like the debts are business debts, which you won't owe for if your husband had a business license.
Helpful Answer (0)
Report

So, you'll have the lawyer draft a letter that you'll send to the credit card companies. You'll ignore the letters they send your husband, and you'll check caller id when answering the phone.
Helpful Answer (3)
Report

I did consult with our elder atty. He said do NOT keep paying on the credit cards monthly minimum payments. Said they cannot collect from someone who has nothing except Soc Security. I am afraid the credit card companies will start calling us , send letters and collection agencies after his debts. I guess I realize I am not responsible but it still worries me. Still waiting to see if community Medicaid gets approved for him.
Helpful Answer (0)
Report

He had charges for his hearing aid business. People would buy hearing aids, then want refunds if they didn't work out. By then he had paid other bills w this money. He owed for advertising , rent, other overhead. We live in NY state. Western NY.
Helpful Answer (0)
Report

In most states you will not be responsible for your husband's debts that he incurred only for himself. If he went into debt buying things for the house, you would share in responsibility. But if he went into debt on trips or buying himself a boat or hunting lodge, then no, you are not responsible in most states. There are a few community property states where you will be responsible for any debts that incurred during your marriage. You will want to check to see if you live in a community property state.

When your husband passes, creditors will have first dibs on any money he has left. This includes money that is in joint accounts if I understand correctly. It would be wise to keep your money separate from his. Debt will not count against him if he has to apply for Medicaid, though you may not want to do anything to cancel the debt during this time. Some places will issue a 1099 when they cancel debt, so there can be large tax consequences.

Hope you can see your way through this. What did your husband charge? That will be a huge consideration. If it was groceries, utilities, etc., the debt may be considered household. If it was something just for him it would be his debt.
Helpful Answer (2)
Report

What state do you live in?
Helpful Answer (0)
Report

I think perhaps a consult with an elder care attorney (often the first session is free) might be an idea.
Helpful Answer (1)
Report

I am thinking the debt may work in his favor, but I don;t know this. Good luck
Helpful Answer (1)
Report

I'm bumping this up again.
Helpful Answer (0)
Report

Great question! I dont8know the answer but am bumping this up in hopes someone does!
Helpful Answer (0)
Report

Are you POA? Sounds like the credit cards need to be cancelled. Is his credit good enough to get lower interest cards through a credit union. Is the pension such that he could borrow against it to pay off the cards? Sometimes credit cards will settle for a reduced payoff under medical circumstances.

I would start by contacting a medicaid advisor and ask how this debt can be paid off with out raising red flags.
Helpful Answer (0)
Report

This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter