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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

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Before my SFIl with Parkinsons and LBD was given a court-assigned 3rd party guardian, we ignored any communications from the cc companies to whom he owed more than $10k. I would return the collection letters "No longer at this address". We didn't answer their calls or return them. I think once he went into a MC facility I wrote on their letter that he had dementia, had his house foreclosed and was now in a nursing home with a legal guardian. All calls and letters stopped. If collectors wanted to try to get anything, they'd have to do that during the probate process, to get it from a deceased's estate. And good luck with that, since they'd need to get in line behind the government, the funeral home, and the attorneys (and maybe even the accountants).
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Geaton777 May 18, 2025
Also forgot to add that the cc debt became the responsibility of the guardian once that was put in place. But... Medicaid = no money, so nothing to collect.
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Do not call cc company on your phone. Do not give your name. Once they have a new number to call, they will be relentless. If she still has a phone, use hers before canceling the phone.
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Cut the credit card in half and mail it to the credit card company along with the last payment. Your mother's credit will be ruined, but who cares. She isn't going to be buying anything in the future.
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Beatty May 17, 2025
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Regarding PAYMENT of the CC, is there a financial hardship area of your Mom's bank? Or approach the reverse mortgage company & explore if there is anything further that can be done.

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.
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CC will eventually do a charge off after 6 months. They can sell it to a collection agency if they want, but after the charge off, they will not actively pursue to collect.
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Isthisrealyreal May 17, 2025
The credit card company won't be trying to collect a debt they sold but, whomever they sold it to will be trying diligently to collect it.
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Because of the son and the complications of the reverse mortgage history this is something that needs discussing with an attorney. Our guesses may lead to the wrong answer and may complicate issues a lot. Just be certain that you, yourself, do not pay anything on these cards as that can be called "assuming the debt" and they may start coming after you. If these debts aren't paid they can't touch anything she has but they can attempt to put a lien on the home, then fight it out with Medicaid when it does clawback. However, not paying a credit card and consequently having debt written off counts as a sort of tax thing.
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.
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From what I understand, once Mom leaves the house the lender will want their money meaning the house will need to be sold. That leaves brother to find another place to live. You nor your brother is responsible for Moms debts.

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.
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BurntCaregiver May 14, 2025
@JoAnn

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.
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To clarify: "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. " So, apparently she is still living in that house with her disabled son.
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Do a search here on the forum for Igloo 1099-C.

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.
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The credit card bills don't get paid. The credit card companies have to be told that your mother is in a nursing homeon Medicaid and they take her entire income. She also had a reverse mortgage and has no more equity left in her home. That asset no longer has any value either.

You can't get blood from a stone. Tell them this.
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