Legal Question in Credit and Debt Law in Maryland

Re: If you are disabled are you entitled to have debts relieved?

Nearly everything about insurance coverage depends upon what the policy actually says. Unless you have a purchased a special policy that is itended to cover your debts in the event of death or disability, you would not be covered. But you need to read all of your actual policies in order to know what you coverage is, and what it is not.

As far as "mortgage insurance" goes -- if you purchase a home with less than a 20 percent down payment, you may be required to purchase something called "mortgage insurance". Usually, this is not a protection for you -- rather, it is a policy that protects the LENDER in the event that you default on payments and property is foreclosed. You need to make sure what kind of "mortgage" insurance you are talking about. If you have another type of disablity or life insurance type of policy then it may provide payments to you now.

Please feel free to call me if you think you would like to have me review your insurance contracts to help you determine your coverage levels.

Lawrence R. Holzman, Esquire

Joseph, Greenwald & Laake, P.A.

6404 Ivy Lane, Suite 400

Greenbelt, MD 20770

(301) 220-2200

fax (301) 220-1214

Disclaimer: Please note that the posting of this response is not intended to constitute legal advice. You should contact an attorney to obtain information applicable to your situation. This posting is not confidential or privileged and does not create an attorney/client relationship.

Re: If you are disabled are you entitled to have debts relieved?

There is nothing in the Americans with Disabilities Act to relieve people of debts due to disabilities. Some creditors might write off debts as a courtesy. In other cases, you may have a policy of insurance that would pay the debt in the event of disability (these are generally overpriced -- sold by credit card lenders or car lenders -- and not worth it, but if you have them, they should be called upon). As for the mortgage, it is doubtful that you would have such a policy. While mortgage life insurance is not uncommon (although more expensive than comparable life insurance), it is unlikely to cover disability. The product that you pay for through your mortgage if you put less than 20% down, called Private Mortgage Insurance, is to cover the lender in the event you default, paying the lender any loss after a foreclosure.