Running out of money

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I just moved my parents from an assisted living facility in NJ to a nursing home in MI and have started the Medicaid application process. They have no tangible assets, except for one vehicle. The stack of medical bills they have accumulated in NJ exceeds their ability to pay and there is no inheritance that we are trying to protect. What are the consequences of walking away from that debt? Will it affect their Medicaid application?

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Walking away from debt should not affect Medicaid application, but if the debt is written off by creditors, there *may* be consequences later if the companies send out a 1099-C for cancellation of debt. At that time, you will need to make sure and file the proper tax forms so that the "phantom income" of the written off debt does not cause the parents problems with Medicaid and the IRS. Just keep track of all documents and follow up when you get correspondence.
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The benefits of Medicaid are handled state by state, so moving from one place to another takes good planning. Contact your County Area Agency on Aging for advice. You might also try the Ombudsman for the patients in their current nursing home for advice.
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My mom has lived by herself all her life, she is now 85 yrs old and has lost about 85% of her hearing. Would like to move her in with me in Tx. But don't want her benefits to be affected because of that. Who can answer that and more questions for me. Seeking direction and guidance.
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Shouldn't affect the Medicaid issue. Check with local legal aid society about the debt but don't worry about it.
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