credit card settlement for dad

[hannahemma]

I have a delimma to resolve!! I live in the state of CA. I have recently started taking care of my fathers finances (about 11 mo.s ago). He has just gone through a divorce at the age of 72(his wife of 9 years got $65000 and $500 mo. for 2yrs). I have tried to keep his credit card bills current and have closed his two credit cards, one is 19200 and the other is 5700. He has recently had to refinance his house to pay-off the ex. I would like to offer a settlement to these two credit card companies but I dont know if they will do it. They have been late in the past but are current now. I am struggeling to pay these every month!! Will they take a settlement if they are not behind?? Every post I see is always after they go to collection. Wouldnt they be better off to take a 60-70% settlement than to let it go deliquent?? I dont know how much longer I can keep these current. His health is failing and I am haveing to consider an assisted living situation which is going to cost considerably more than he is paying now. I am at a loss! PLEASE HELP!!!

Sharon

[ihatearizona]

It couldn't hurt to try. Just make sure you do everything in writing.

[bigun]

Given his age and health condition, you maight want to see a lawyer about the totality of his situation. A bk might be better solution than, a settlement.

[caliber]

I would hesitate in even mentioning bankrupcty with an UNSECURED credit card without first consulting an attorney steeped in this area. Offering a settlement from a current position does not sit well with these financial institutions(they'll want to know where the money is coming from) and working settlement from a default position is not much better, but the damage to you dad's credit may not a compelling issue due to his situation. There are aggressive ways to dispute these credit card banks under federal law, but you must have the stamina to see that through. I would not pay the credit card bank one dime if the reserves had to support my health and well being. If the balances are under 25k and they are personal accts and unsecured there is a remedy under federal truth and lending, but as I said you must take the time to learn and see it through which could take months. Spend time evaluating.

[Ladynred]

I agree with Bigun, BK might be the best way to free him of the mess, espeically if his health is failing, the last thing he needs (or you as caretaker) is that kind of stress.

I would certainly consult with a BK attorney as long as your father is still competent to file.

If he doesn't want to do that, then just quit paying the damn credit cards and take care of your Dad. His care is FAR more important and if assisted living means he has no assets that can be taken, then there's probably small risk in just letting the cards go. YOU are NOT liable for his debts so they cannot go after you, and, as already mentioned, his credit is of little concern.