Those bills just keep on coming. Some are relatively small, but others are staggering. Your mom has accumulated all of these bills and she cannot possibly pay for them on her income. She has a house with some equity, but she also has encumbered it with a second mortgage that she used to try to pay down her massive debt.
Part or all of this may describe your mom or dad. They're getting up there in years and have accumulated enormous debt, and they don’t seem to have a lot to show for it.
How did it happen?
There are as many reasons for it as there are seniors who are in debt, but what really matters is there is no way your parents can get out of this on their own.
We may be able to help them at Steidl & Steinberg. We will look at their debt, income, assets, and suggest solutions.
How can bankruptcy help?
It is possible that one or another type of bankruptcy might be helpful, either Chapter 7 or Chapter 13. It is possible that we may suggest that you sell off some of their assets. It is possible they'll be able to keep everything. And it is possible that both a sale of assets and a type of bankruptcy might be appropriate. In the last several months, I have suggested each of the above solutions in different cases.
One option does not work so well, and that's doing nothing. Doing nothing leads to phone calls, letters and lawsuits. Those lawsuits can result in a loss of assets such as money, vehicles, and even houses. Some of our clients say that the pressure of having all of this debt is overwhelming and affects their health.
If you find one or both of your parents are in a tough financial situation, contact us by email or phone and let’s take a look at it. We'll review their situation and go over some suggestions on how to approach this problem and solve it.