Filing on seniors

Because of health issues, we have recently become involved in my in-laws finances in California and have found out that they have incurred over $30,000 in credit card debt. They have NO assets and just receive their monthly social security as income. They are currently filing for Medi-Cal. They have been making payments of approx $900/month on interest charges alone. They need this money to help pay for in-home care following a hospitalization and in the future will need to go to a board and care facility.

We are considering having them cease payments on their debt; however, we are concerned about collection calls that will follow. There are seven credit cards. Should we contact the companies and tell them they are unable to pay?

Comments for Filing on seniors

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Aug 06, 2010
 debt for elderly person
by: Gerri

I am sure this is a stressful situation for everyone involved - it's really terrific that you are able to help them navigate all of this.

What I would suggest you do is set up a free consultation with a bankruptcy attorney and join the consultation with your in laws. It sounds like they may not even need to file for bankruptcy, but they do need to find out for sure if they are judgment proof, and you can find that out from the attorney. If it turns out they are judgment proof, then you'll be able to notify the creditors of the situation and chances are they will write off the debts.

If they do send these accounts to collections then your in-laws can send the collection agencies a cease and desist letter explaining the situation and asking them not to contact them again. We hope this helps.

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