Posted by My mother will be going from short term skilled nursing to custodial care in the next week or so. Her only income is Social Security, and no home, no car, no assets. The only thing she has is her pre-paid burial plan, and we are doing spend down with remaining savings on her funeral pre-planning. Her savings won’t completely cover the funeral pre-planning costs.
The issue we have is she also has about ,000 in credit card debt. If she’s on Medicaid, can we just ask the company to write off the debt? Any suggestions? How do we approach them, and when?
I wouldn’t worry about it – creditors will call – I would utilize, especially since she is so ill the Fair Debt Collection Practices Act-It states anything perceived by the hearer as offensive is harassment-Most debt collectors especially on the bank level, are honest, advise them, (actually they are not to speak to anyone but mom under the law, but if she gives permission you can talk to them) better yet, just write them do not call, please contact by mail only, certified return receipt requested, in six months of no pmts the debts will be charged off, and you will have to repeat this process over and over, for years, as the now emerging industry of factoring (buying and selling of debt) will probably result in the debt being sold every six months, or so, to a new co., every time the price goes down as the debt ages. Many people I’ve counseled when I try to help them will tell me when I ask them who owns the Home Depot debt of $400 that you want to get straightened out, from two yrs ago (just an example) will respond "oh I just throw the letters out", well if that is the case how could you know who to straighten out or settle the debt with, and they will reply "can’t I just go to Home Depot", not understanding after charge off most debts are sold, some, less than those that are sold, are farmed out to collection agencies.
Some one down the may sue, unlikely, unless she has assets that they know about, or a job to garnishee, and they are usually looking for larger debts, but there are some really aggressive collectors out there who may trace her to the facility-and try to speak w/her there. That is why the letter for contact by mail only is important.
It is unfortunate, most collectors play it straight, but there are some commission hungry ones out there who will bend the law.
I think most honest firms, even when they "skip trace", and if they find out and verify moms being in a full care facility will just put the account in the "uncollectable" file.
Social security, or disability benefits are not liable to attachment for judgements for unsecured debt.
You can ask, but they won’t do it. They will expect you to probate after she passes. Once they are sure there are no assets they will eventually write it off.
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