Legal Question in Bankruptcy in Indiana

Bankruptcy and Medicaid

I have an aunt on medicaid and she needs it. She is 100% disabled, but she was given credit cards and ran up quite a bit of debt. She is going to get a small inheiritence. She should try and just discharge the debt or would it be better for her to pay it all off with the money or try to pay it off. Whatever she does it needs to not affect the medicaid because she can't live without it.

Any help would be appreciated.

Thanks


Asked on 8/26/04, 3:44 am

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: Bankruptcy and Medicaid

Medicaid is not a factor in bankruptcy. But the "small" inheritance could be considered an asset to be administered by the trustee if the amount exceeds the available exemptions (which would be at least four thousand dollars). The inheritance could also be a factor, at least temporarily, in eligibility for certain SSA disability benefits. Many lawyers, including me, offer a free consultation, which seems prudent in your aunt's case, to go over all these issues. Good luck.

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Answered on 8/26/04, 10:08 am


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