Legal Question in Credit and Debt Law in Kansas
Credit Debt for terminally ill
My mother-in-law is now terminally ill. She has no assets to speak of and lives in assisted living apartment. However, she has close to $40,000 in credit card debt and basically no income. Soon, her only income will be from a 401k, disability insurance (for a few months), reverse payment life insurance and social security. Since those ''accounts'' will never get larger and will soon run out (except SS), what is the best way to handle the credit debt? Right now she is paying close to $1000 a month to a credit agency, no longer can afford that payment. What happens if she just stops paying? She has less than 18 months to live and basically needs all income to cover the assisted living costs. Thank you!
1 Answer from Attorneys
Re: Credit Debt for terminally ill
A creditor cannot get what the debtor does not have. Under the facts you have described, it is unlikely that a collection agency will puruse a law suit against the debor (or will have problems getting an attorney to take such a case.) However, if the creditor pursues her, and she needs the funds for medical treatment, she may want to file bankruptcy. Sometimes peopel do not want to fiel bankruptcy because of the negative credit worthines implications. If this wpman truly hase only 18 months to live, she will not likely need agood credit rating int eh future. Besides, if she is already $40,000 in arears and is going through acollection agency,her credit is probably not very good now.
Good Luck
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