Legal Question in Bankruptcy in Utah

Protection from foreclosure.

My father is in financial trouble. My mother is very ill with diabetes and there are large hospital bills They also have a lot of money going out for several different medication between the both of them. Their second mortgage is 3 months late at this point and they are threatening foreclosure. Question - is there somekind of protection for ill people that would prevent them being sent to the street? My father seems to think there is something like that for renters - how about home owners?


Asked on 7/26/01, 1:28 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Protection from foreclosure.

I don't have enough information to respond to your parents' specific dilemna. Bankruptcy offers two possibilities, the first is Chapter 7, or liquidation, where all unsecured debts (including medical and credit cards) are discharged. Your parents could keep the house, but only if they can make up the delinquent payments. The other choice is Chapter 13 (wage-earner) where they propose a plan which includes partial payment for some debts and a plan to catch up on delinquent debts.

There are other solutions, such as Consumer Credit Counseling, a non-profit consumer assist program, which can reallocate dollars for debt payment.

Your parents should also talk to the hospitals about reducing or eliminating some of the bills. Federal law requires hospitals to have programs for destitute patients.

Your parents may also want to check with other community (Salvation Army, state and federal welfare) or religous organizations which have charitable resources.

The worst thing for them to do is nothing. In that event they could lose their home. If they want to call, I would talk to them at no charge.

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Answered on 7/26/01, 4:03 pm


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