Medicaid, credit card bill and home ownership. - AgingCare.com

Medicaid, credit card bill and home ownership.

Follow
Share

My mother is living in long term care in Massachusetts now and starting this month her allowance to keep paying her home related bills will end. We are in the process of listing her house for sale. She can no longer make the payments to her credit cards, but they could be paid off when the house sells, provided medicaid doesn't take all of the money. My question is, what is my best action as her POA? Do I contact the credit card companies and explain what is happening and try and get them to settler her debt? Do I just let the fees pile up? The only thing that we would like to gain from the sale of the house is to be able to pre-pay her funeral costs. I don't expect to see any other money from the sale of the house and we are ok with that. Thank you.

This question has been closed for answers. Ask a New Question.
3

Answers

Show:
I would simply ignore the credit cards. She is totally judgement proof, and a lousy credit score means nothing at this time of her life.

If you sell the house, the proceeds must be used to pay her nursing home hills until that money is gone. The money has to go for her benefit and nothing else. Medicaid may see paying for anything else as abuse, and refuse her benefits until the money is paid for her care.
Helpful Answer (0)
Report

I would call the company and try to settle and stop the fees. If they refuse and your mom won't need to worry about her credit score anymore, I would stop paying, let it go to the debt collectors and they will settle for much less. The other option is to go to the free government sponsored debt counselor and they can negotiate with the cc companies much better than you can.
Helpful Answer (0)
Report

Medicaid will stop when the house is sold. It's called "income". It will not restart until all the proceeds are spent down. Talk to the lawyer who is handling your end of the closing.
Helpful Answer (0)
Report

This question has been closed for answers. Ask a New Question.
Related
Questions