Need financial/bankruptcy advice for senior parent.
My mother is 67 and unemployed after disabilities took away her ability to work. Her only income is social security at about $850 per month. While she was working a while back she was able to afford her $600 rent, utilities, $250 car payment, insurance, medical, credit card payments (around $10k owed), etc. Since she is no longer employed all of her shortfall has been made up by her children. However, we are unable to make up all of her shortfall due to our own financial struggles. My mom has been making only $100 per month payments on her car and has quit paying her credit card bills. She is also not paying her entire rent.
The condo my mom has been renting is being sold. She has around 2 months or less before she is out of housing. She is on waiting lists for low income housing, but she will have a short stay with family until one comes open.
Our concern now is her credit status and the debts she cannot pay. We (the children) suspect she won't qualify for the low income housing if she has debts that exceed her income and credit card companies harrasing her for money. Our personal feelings are that she is better off with filing for bankruptsy than just ignoring her debts.
Can someone give us some advice on what she should do? Should she file for bankruptsy or continue ignoring the bills she cannot pay? We are mostly worried about the credit card bills. We will let the lender reposses her car since they are already trying and her driving skills are declining anyway. Once she is debt free we think she can afford the low income housing, medical bills, etc. with minimal additional help.