Mom is about to go into either assisted living or nursing home in VT whereby with Medicaid, the facility will take all of her social security except $70. Mom has outstanding credit card debt of approx $18,000 which has all been used to cover food, home repairs, and healthcare bills not covered by Medicaid. There won’t be any money from her soc sec to continue to pay the min each month once she’s confirmed a resident.
She does have a house and previously a reverse mortgage which has been closed since max has been reached. My 63 yo disabled brother lives there with her now. He’s on soc sec disability.
Any guidance out there? We know collections will start happening. She will have no money to pay it off moving forward. She is currently only able to pay the minimum now along with basic house expenses
I have heard CC companies may be willing to wipe some of the debt if the chance of 100% repayment is very low (or 0%).
Maybe if the debt is much reduced, you may be able to find a way Mom can pay small contibutuons back.
Regading CONTACT, the CC co can send mail to your Mom at her new address. Eg Ms Mom C/- Aged Care Home.
Alternatively, if that would be distressing to Mom, maybe Mom would authorise the mail to the Manager of the Facility.
Eg Ms Mom C/- The Manager, Aged Care Home.
That way the mail could be held for you to collect instead.
I would avoid having the CC co write directly to your address or know your name & address if possible. (I'm not about shirking bills but some companies get mightly confused about what role a POA has. They confuse the responsibility a POA has & may harrass you personally).
Regading your BROTHER, it would appear he could benefit from a Social Worker. To help look at his options.
You have a lot going on. I hope you have supportive people around you, while you support your family.
Like I said, this is no time for do-it-yourself guesswork or the guess of a bunch of strangers on a forum. I would consult an elder law attorney.
You may want to consult with an Elder lawyer. Medicaid will want the house sold at Market Value. You wantvto see if Moms debts can be paid with the proceeds. Your problem is not cut and dry with a RM and a disabled brother who has been livingvin the home.
If there's no more equity in the house because the mother collected all of it through reverse mortgage, the reverse mortgage company owns the house. It is their asset now not the mother's to sell anymore. The nursing home or Medicaid can't doesn't decide what the reverse mortgage company does with their property. The mother is getting placed. No one is getting any money from her.
Any amount over $600 can cause a tax problem that can cause loss of Medicaid if not handled properly.
Then do another. Igloo Reverse Mortgage.
Hopefully Igloo will see your post and reply.
You can't get blood from a stone. Tell them this.