Helping disabled parents question

[deadbroke99]

I am an only child with two disabled parents. They do not live with me as of right now they are able to stay in their own home. Long story is my dad had a heart attack in 2005 and was shocked 28 times to start his heart back. Lack of oxygen caused brain damage. He has short term memory loss and is just not the same person as before. He is on social security disability. My mother has been on SS disability for about 10 years. She also has had several heart attacks and also has Fibromyalgia. Both of them are able to drive still but I handle all of their bills. My name is not on any of their accounts, I pay their bills thru online bill pay at their bank. Their medications are so expensive so they barely have anything left every month. Lately, I have been helping them with grocery money. I am planning on filing in a few months. I have not talked to an attorney as of yet. How will helping my parents be looked at? Both are disabled in the eyes of the law but they are not in my household. I orginally thought I would have to file chapter 13 but doing the means testing on legal consumer has given me hope that I might qualify for a chapter 7. How would the trustee look at this?

I am wanting to file to rid myself of unsecured cc debt and a second home that an investor is leasing to own but has been paying very late in the last few months. I even got a letter stating due to the economy that they would only be able to pay half of Feb's mortgage payment. I have stopped paying all cc's in December but my house and car payments are up to date (beside the second house) I am over medium income in my state but believe the IRS deductions might qualify me. Any advice out there?

[Flamingo]

As to your two disabled parents...unless you claimed them as dependents on your tax returns you cannot utilize the money you help them out with as expenses for your filing. You have to provide over 1/2 of their support and they have to live with you over six months out of each year to be claimed as dependents.

As to their expensive medications, many drug companies such as Astra Zeneca provide discounted medicine to seniors who cannot afford their medication. You should look into what medicines they are taking and if there is such a program with the drug company making the medicine. To lighten the load on you there are many state programs and agencies that can direct you to local senior centers which have all sorts of programs on hand for disabled seniors, trips, etc. and discounts for all sorts of services. You should take a moment and look into those to help out with expenses and free up some time for yourself.

Best of luck to you and your parents are very lucky to have your help.

[Dst1]

As to your two disabled parents...unless you claimed them as dependents on your tax returns you cannot utilize the money you help them out with as expenses for your filing. You have to provide over 1/2 of their support and they have to live with you over six months out of each year to be claimed as dependents.

As to their expensive medications, many drug companies such as Astra Zeneca provide discounted medicine to seniors who cannot afford their medication. You should look into what medicines they are taking and if there is such a program with the drug company making the medicine. To lighten the load on you there are many state programs and agencies that can direct you to local senior centers which have all sorts of programs on hand for disabled seniors, trips, etc. and discounts for all sorts of services. You should take a moment and look into those to help out with expenses and free up some time for yourself.

Best of luck to you and your parents are very lucky to have your help.

I think this is very good advice. In most places, there are a variety of programs and services designed to help people in situations like yours. Take advantage of them for your own sanity. Please.

[deadbroke99]

As to your two disabled parents...unless you claimed them as dependents on your tax returns you cannot utilize the money you help them out with as expenses for your filing. You have to provide over 1/2 of their support and they have to live with you over six months out of each year to be claimed as dependents.

As to their expensive medications, many drug companies such as Astra Zeneca provide discounted medicine to seniors who cannot afford their medication. You should look into what medicines they are taking and if there is such a program with the drug company making the medicine. To lighten the load on you there are many state programs and agencies that can direct you to local senior centers which have all sorts of programs on hand for disabled seniors, trips, etc. and discounts for all sorts of services. You should take a moment and look into those to help out with expenses and free up some time for yourself.

Best of luck to you and your parents are very lucky to have your help.

Thanks. Neither of them are seniors though. My dad is 53 and my mom is 52. So sad to see them both disabled and still quite young. I will look into it. I just don't want the trustee to say stop helping your parents and pay on own bills. I can't see them go hungry. I will check to see if there is any help out there. Medicare sure doesn't help much. Thanks for the advice!

[keepmine]

Actually, it looks like helping family members is an allowable expense.

http://doney.net/bkcode/11usc0707.htm

II) In addition, the debtor's monthly expenses may include, if applicable, the continuation of actual expenses paid by the debtor that are reasonable and necessary for care and support of an elderly, chronically ill, or disabled household member or member of the debtor's immediate family (including parents, grandparents, siblings, children, and grandchildren of the debtor, the dependents of the debtor, and the spouse of the debtor in a joint case who is not a dependent) and who is unable to pay for such reasonable and necessary expenses.

[fltoo]

As to your two disabled parents...unless you claimed them as dependents on your tax returns you cannot utilize the money you help them out with as expenses for your filing. You have to provide over 1/2 of their support and they have to live with you over six months out of each year to be claimed as dependents.

As to their expensive medications, many drug companies such as Astra Zeneca provide discounted medicine to seniors who cannot afford their medication. You should look into what medicines they are taking and if there is such a program with the drug company making the medicine. To lighten the load on you there are many state programs and agencies that can direct you to local senior centers which have all sorts of programs on hand for disabled seniors, trips, etc. and discounts for all sorts of services. You should take a moment and look into those to help out with expenses and free up some time for yourself.

Best of luck to you and your parents are very lucky to have your help.

Parents of any age do not have to live with you 6 months to be your dependents. They can have their own household.
Look at IRS publication 501 for some very useful info on "qualifying relatives."
They must make less than 3500. though, and you need to supply more than half of their support. Also, check to see if their ss payments count as income, I am not sure of that one.

Good idea to check state help for the meds. Many programs out there.

I commend you for taking care of your parents.

[deadbroke99]

Thank you all. I don't deserve any special mention as my parents struggled and raised me the best they could and it's my duty to take care of them. It's just very sad to see the shape they are in their early 50's. It does make me want to take better care of myself and my heart seeing the trouble they have both went through. This bankruptcy will help my stress level that's for sure!!

[arkienurse]

I just wanted to add.... please get yourself a thorough going over from a doctor. I don't want to worry you needlessly, but cardiac disease can be inherited. It is also one of the major killers of women, because for years heart disease was thought to be a man's disease. We women also will present with unusual symptoms that may be overlooked until it is too late.
You should at least have your cholesterol tested. There is also a test called a "calcium score" that can tell you if you already have coronary artery disease, and in some cases predict if you are at risk. My hospital has been running a special on this test for the past year, trying to encourage everyone to get the testing done.

[deadbroke99]

I just wanted to add.... please get yourself a thorough going over from a doctor. I don't want to worry you needlessly, but cardiac disease can be inherited. It is also one of the major killers of women, because for years heart disease was thought to be a man's disease. We women also will present with unusual symptoms that may be overlooked until it is too late.
You should at least have your cholesterol tested. There is also a test called a "calcium score" that can tell you if you already have coronary artery disease, and in some cases predict if you are at risk. My hospital has been running a special on this test for the past year, trying to encourage everyone to get the testing done.

Thanks, I will do that. My mom had her first heart attack at 35 and I am 32. Scary!

[Flamingo]

Actually, it looks like helping family members is an allowable expense.

http://doney.net/bkcode/11usc0707.htm

II) In addition, the debtor's monthly expenses may include, if applicable, the continuation of actual expenses paid by the debtor that are reasonable and necessary for care and support of an elderly, chronically ill, or disabled household member or member of the debtor's immediate family (including parents, grandparents, siblings, children, and grandchildren of the debtor, the dependents of the debtor, and the spouse of the debtor in a joint case who is not a dependent) and who is unable to pay for such reasonable and necessary expenses.

Hmmmm, we could not include what we were spending on a monthly basis to help out my 85 year old mother as to groceries, household work, services, etc. and we had a top BK attorney in our state. We were advised to look into programs for her care and free services/discounts and you would be amazed at what is out there with a few phone calls to help out aged or disabled folks. My mother could not drive nor do bills/paperwork and did not live with us and we spent a small fortune each month for years on gas, food, household repairs, etc. that she could not afford to pay as she only received SS. We could not include even a portion of those in our filing paperwork but we managed to continue to help her after filing until she went into a nursing home a year after we filed. I guess the situation is looked at as to costs involved and the income and what is available to the disabled party(s). I think the key word above in the quoted posting is "may."

In any event, the OP is being proactive about this which is the best thing for her and the parents. Investigating services and freebies available to them by the state or drug companies is definately worthwhile and will save costs and a burden on her. Since they are disabled and living in their home there would be discounts available on property taxes, electric, cable, sewer/water, etc. as would be available to seniors. Just takes a few phone calls...