My husband's father is currently in an active Chapter 13. He only had one secured debt, his truck, and the rest were unsecured medical debts. The secured debt was paid off in January. His payments are currently scheduled to continue through August 2008, 16 more months. The value of the truck is approximately $3000.
Due to declining health, we have placed my father-in-law in a nursing home. For the first 3 months, they will let us keep his social security payment, but after the first 3 months, he will only get a $40.00 personal allowance per month. He has absolutely no other income, and no way of returning to work.
I have paid the current payment to buy us some time, but I am wondering what our options are at this point. If we were to do a voluntary dismissal, what would happen? I know that Social Security cannot be used to pay old medical debts, so would they have to write these off? Is there any way that they would try to hold my husband and me accountable for these debts? Would they take my FIL's truck, even with it being his only asset and the only way that we will have to take care of his final arrangements? Would we even get the title to the truck if we were allowed to keep possession? Are there any circumstances in which the court would consider forgiving the rest of his plan payments? How do we go about getting something done?
I have considered paying 3 times the normal payment amount for May, June, and July while we are still receiving his social security, but from what I have read, that might just result in more being paid to the unsecured creditors and not in a reduction of length of payments. Also, we would be very limited on what we could pay after the nursing home begins taking his social security. I have requested payoff information, but have yet to receive it. Would it be better to save his social security for the next 3 months and hope that it would cover the payoff amount at that point? I have also tried to contact his attorney, but he has not returned my call yet.
Does anyone have any ideas or possible options? My husband and I have 3 children under six, and while we feel it is our responsibility to take care of his father, we are very limited in what we can do financially.
Thank you so much for reading, and any advice is greatly appreciated!
Mandy
Due to declining health, we have placed my father-in-law in a nursing home. For the first 3 months, they will let us keep his social security payment, but after the first 3 months, he will only get a $40.00 personal allowance per month. He has absolutely no other income, and no way of returning to work.
I have paid the current payment to buy us some time, but I am wondering what our options are at this point. If we were to do a voluntary dismissal, what would happen? I know that Social Security cannot be used to pay old medical debts, so would they have to write these off? Is there any way that they would try to hold my husband and me accountable for these debts? Would they take my FIL's truck, even with it being his only asset and the only way that we will have to take care of his final arrangements? Would we even get the title to the truck if we were allowed to keep possession? Are there any circumstances in which the court would consider forgiving the rest of his plan payments? How do we go about getting something done?
I have considered paying 3 times the normal payment amount for May, June, and July while we are still receiving his social security, but from what I have read, that might just result in more being paid to the unsecured creditors and not in a reduction of length of payments. Also, we would be very limited on what we could pay after the nursing home begins taking his social security. I have requested payoff information, but have yet to receive it. Would it be better to save his social security for the next 3 months and hope that it would cover the payoff amount at that point? I have also tried to contact his attorney, but he has not returned my call yet.
Does anyone have any ideas or possible options? My husband and I have 3 children under six, and while we feel it is our responsibility to take care of his father, we are very limited in what we can do financially.
Thank you so much for reading, and any advice is greatly appreciated!
Mandy
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