Legal Question in Bankruptcy in New Jersey
Elder Credit Card Debt
Upon my mother's death in Dec., the family discovered over $80,000 of credit card debt in addition to a home mortgage. Half the debt was in my mother's name; the remaining in my father's name. Unfortunately, my father had no idea of the debt -- my mother handled all of the finances. My father's only source of income is Soc Sec. Due to the housing market, if we sell the house, we might not get enough to cover the mortgage and the debt. Dad is in his 80's and we would prefer to keep him in the house as to not to confuse him. We have creditors threatening to have the sheriff serve him with papers for a lawsuit. If we negotiate the debt down or eliminated, he will have to pay income taxes on that and does not have the money to do us. We are at a lose and don't know how to help him with the debt and hopefully keep him in the house. Is a reverse mortgage the only solution?
1 Answer from Attorneys
Re: Elder Credit Card Debt
With respect to the credit card debt in your mother's name, that debt belongs to the estate. If the estate does not have funds to pay the debts, then it is insolvent. There is a process to declare an estate insolvent which may or may not be necessary depending on your situation.
With respect to the credit card debt in your father's name, your father could consider a bankruptcy filing to wipe out the debt.
This answer is based on the limited information contained in your question. Feel free to give me a call and I will be glad to discuss the specifics with you.
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