Mom is moving into Independent Living (not Assisted Living yet) as she can't do daily chores. What obligations to creditors does she have? - AgingCare.com

Mom is moving into Independent Living (not Assisted Living yet) as she can't do daily chores. What obligations to creditors does she have?

Follow
Share

She will be moving in the next 60 days. Zero equity in home. $50k in cc debt. Looking at community options and costs she will have little or no funds after expenses. Her income is from s.s. and state retirement pension. In fact, we will probably be supplementing some of the expense ourselves each month.


I know assisted living and skilled nursing she would be shielded but unsure what it would mean in Independent Living.
We plan on obtaining a credit report and sending certified letters to creditors stating she has moved into a CCRC and can no longer meet her debt obligations and that any further contact should be in writing mailed to a p.o. box we have set up near us.
Any advice?

This question has been closed for answers. Ask a New Question.
5

Answers

Show:
My mom moved into an independent apt years ago when she could no longer do housework; now she barely cooks, either. Because of her limited income (I guess, she tells us nothing) social security provides a weekly housekeeper, bath aide, RN, shower seat, medical alert, ensure, etc. She also gets elderly meals 5X a week at a cost of $35 per month, has most groceries delivered, as well as prescriptions, and pays people to take her any places I am not able to take her (she goes out 2-3 times a week somewhere or other). She lives pretty well WITH her cat that she cares for; the apt is clean and she gets enough to eat and showers 3X a week. Your mom can probably do as well, tho you may need to make the calls and do the interviews with her - mine is so independent I do nothing, tho she recently said bill paying is getting to be too much, probably because she is on pain meds all the time for her deteriorating spine. Does this help?
Helpful Answer (1)
Report

What I don't understand is that if she cannot do her daily chores why she is moving into independent living, That is usually the time to move into assisted living.

I agree it would be wise to meet with an Elder Law attorney regarding her situation, and planning for the future, and being careful about contributing to her finances. Should she be declaring bankruptcy?
Helpful Answer (0)
Report

Some people may be responsible for the debt, but, there are no funds or assets to collect, so they may be considered judgment proof. If no equity in the home, can't get that. (Lien holder/mortgage gets land back.)

I'd get legal advice from an attorney in their jurisdiction to find out the best course to take.
Helpful Answer (0)
Report

Jam, as long as your Mom is alive, she is responsible for all of her debts. If she is unable to understand bills and checkbooks, then her financial Power of Attorney needs to come into the picture and set up his/her name onto her checking account, so that he/she can pay the bills with Mom's money.

As for Independent Living, on average they charge $5k per month. Or is Mom moving into senior apartments where rent is based on one's income?

Can you expand on what you mean when you said that Mom has zero equity in her house? Does she rent? If not, the house and the land still have value. Did she take out a Reverse Mortgage?

My Dad sold his house and moved into Independent Living, he was still responsible for all of his bills.  Same when he moved into Assisted Living.  I was his financial POA. 
Helpful Answer (1)
Report

I'd get a consult with an attorney before doing anything, including sending letters. There may be defenses to these debts, like statute of limitations, etc., that you may not be aware of. It appears she has little for them to seek.

Plus, I might consult with an Elder Law attorney about her qualifications for Medicaid or a state plan that covers AL facilities if prescribed by her doctor. I'd be careful about paying things for her, as it might be considered part of her monthly income and disqualify her for some benefits, because her income is too high. An expert might be helpful in making sure she's protected.
Helpful Answer (2)
Report

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