Should I pay mother's debts

This sounds like a case for bankruptcy. If these accounts are in your mother's name, it shouldn't affect you and it's not like she's going to need to buy a house or a car if she's in a nursing home.

Even if you do pay, her charges have put her into a risky category so chances are, the credit card companies will just keep lowering the limit to match the balance while raising the interest rate (I can't imagine what it would be like to pay 30% on $150K!)

Depleating your savings would just leave you both high and dry. I'd turn that spigot off immediately.

IMO, it would be better to eliminate the debt through a bankruptcy and live on whatever cash comes in then to plan on living on the fickle nature of credit cards.

But that's just my view from the cheap seats.

 

Agree with ccbob regarding bankruptcy - if she is the sole holder of the credit cards, that is if they're not joint cards. If they are joint cards, you will have to file too.

 

I have to agree with exploring the bankruptcy option. There are a couple of "sensitive" issues here. (And please note, these are all business type solutions):

1) Your mother's financial state is prime for bankruptcy, provided whatever financial arrangements made with the nursing home are solidified. She will essentially have "no income" from this point on, and is immune to legal action or judgements. A bankruptcy will also halt stressful efforts by collection agencies.

2) YOU: I admire you for your values, and character of stepping forward to help your Mom. However, you have a life ahead of you also, and I'm assuming some of this money is for your retirement and emergencies. If your mother files bankruptcy, this will free her estate from the burden of these bills. There is a good chance that if she passes, and these bills are left open, someone will try to collect from next of kin (you?).

In brief, this is now about protecting your assets, I'm sure your mom can understand this. They will not be able to touch her in a nursing home, though they may try.

Your only other potential option is to explore the "hardship scenarios" with the providers of these services. Many hospitals are "non profit" still, and have reserves for these situations.

But I would sit down with a good bankruptcy attorney and discuss the situation. Call your state's Bar Association for the referral service, they can provide several names in your area for this practice.

Good Luck..

 

I disagree with the Bankruptcy option. She has no assets to protect in Bankruptcy and they can sue her till Kingdom Come, they won't get anything. You file BK to protect something. If you have nothing to protect and nothing a creditor can attach then why bother with the expenses of a BK?

I agree with the advice not to pay her debts. If you feel you should make your funds available to mom, then keep them in your name for when mom needs them to be paid to mom's medical providers directly. Giving them as payment on her credit cards is just throwing your good money after her bad money.

 

The only think a bankruptcy will do is to make the creditors go away, and not call, write, or try to sue her.

I also agree that you shouldn't pay the debts, assuming that the accounts are in her name only. If they're in both names, it's a whole different ball game.

Keep the money for what you'll really need in the future. You can always buy her the little things she needs or wants.

 

"Look, my mom is in a nursing home on Medicaid. Do your worst" will also make most collectors with a half a brain move on to their next victim, and you don't have to pay a lawyer to say it.

 

Like Bizwiz, I have to commend you on your sense of honor. But here's the thing: This is your mother, but she is a grown person. As much as you feel
responsible for her and want to help her, she did this on her own, with good reason. What if you had done this? Your parents wouldn't have been responsible for you and you couldn't expect them to pay it off on your behalf.

So, as others suggested, looking at bankruptcy might be a good thing to do.

 

Bankruptcy might be official, but FlyingIfr has a point, what can they do?

I suppose it all comes down to what it's worth to you to not have to tell the CAs to go away. While FlyingIfr has had a lot of practice in dealing with CAs, other's may not be so bold or self-assured.

Filing bankruptcy would keep you from being put in a potentially awkward position (e.g. paying them a little bit to "go away" which, as we all know, usually does way more harm than good.

 

Disagree with you on #2 - "that if she passes, and these bills are left open, someone will try to collect from next of kin".
Unless the next of kin is a co-signer on any accounts, the debts die along with the original creditor.
Even in a so-called community property state - which apply only to married couples, but not to parent/child.

 

that's probably true, but that doesn't mean they won't try and come after you anyway.

 

A wise man once said only smart people die broke.Your mothers credit problem is the least of her worries.If she is the only one responsible for paying off this debt and she has no assets i am sure the bank can afford to take the loss.You and her should not feel any guilt or shame over this.You both need to spend the time you have left together enjoying each others company.You are an honorable child your mother should be proud.

 

If they try it's an immediate FDCPA violation. They would necessarily have to misrepresent the nature and character of the obligation, as well as threaten action they have no legal right to take to assert the son has responsibility for mom's debts.

God, how I wish I was the OP in this one - I would have so much fun collecting money from each of mom's creditors' CA's in turn as they try to collect.

 

They'd threaten to sue her. They can do that. The fact that they can't collect on a judgment does not preclude them from filing and obtaining the judgment.

So I don't see that they would be threatening action that they can't take.

How would they be mischaracterizing the nature of the debt? It's credit card debt. Whether or not she has assets does not change the nature and character of the obligation. She still owes the debt, and the creditor can still be granted a judgment on it. The fact that her income is only from sources that can't be levied does not change what the character of the debt is, nor does it change the fact that they can sue her.

 

threatening to sue the son... The topic was "Can they enforce collection against the son?"

Yes, they can sue mom, and they can wipe their private parts with the Judgment.

 

I never saw the OP ask if they could enforce collection against him. He was asking if he should pay his mother's debts, and the advice was for HER to file bankruptcy to keep collectors away.