Signed a "substitution of party upon death of claimant", am I responsible for debt?

[freeadviceun]

Signed a "substitution of party upon death of claimant", am I responsible for debt?

Two years ago my mother passed away in Florida, I live in Colorado. She had a disability appeal hearing scheduled for a month after she died, so her attorneys had me sign a "Notice regarding substitution of party upon death of claimant" Form 0960-0288, saying that if I didn't, her case would be thrown out (she suffered a long time waiting for that money).

We did end up recieving a small amount of the disability money she was owed, but now I am getting these 'bankruptcy court' letters (apparently she had a lot of debt). My name is on the envelope, but I am not mentioned in the letter itself.

Am I liable for any of this debt since I signed that attorney substitution form? That is the ONLY connection I had to her (we didn't share any credit cards/loans).

Or if the bankruptcy court can come after me for this money, I assume it would be capped at the amount we were awarded in the disability settlement?

Thanks for any advice!

 

[justalayman]

had she filed bankruptcy at some point?

 

[freeadviceun]

She had filled bankruptcy 20+ years ago, I'm not sure if she filed "again" at some later point. The names on this bankruptcy thing they sent me are all from medical care she had received within the last 5 or so years (she had no insurance). I didn't have much contact with her for the last 10 years. Again, she was out of state, so we shared no financial ties.

So did I shoot myself in the foot by signing this substitution document after she died? Or do the bankruptcy courts send out these debt claims to everyone even if they don't have a legal leg to stand on?

 

[freeadviceun]

So here is the Form 0960-0288 that I filled out... https://www.socialsecurity.gov/forms/ha-539.pdf and it doesn't seem to indicate 'you are now responsible for all this persons debt'... I thought I was just honoring her memory by not letting this case get dismissed, because she fought so hard for so many years.

I guess my primary concern is - If the debt collectors want to come after me for the money she was awarded after she died, I could maybe understand that. If however they try to come after me for ALL the debt she ever owed, I don't think I will ever be able to sleep again.

Can anyone help me sleep again?

 

[justalayman]

As I understand the system what you did was step in to more or less represent the estate of the decedent. I don't see it making you personally liable for any debts but none the less the money received would have to be considered an asset of the estate and utilized to pay debts against the estate.

Has anybody opened probate or a small estate administration if applicable?

 

[freeadviceun]

Has anybody opened probate or a small estate administration if applicable?

Not sure what that means. She had ZERO assets. The money from this back disability was the only thing she had to leave behind. Other than this one form (and one other saying a lawyer could represent me without me having to fly to Florida), I signed no other docs. And like I said, we had no financial ties.

So do I have nothing to worry about?

 

[justalayman]

Not sure what that means. She had ZERO assets. The money from this back disability was the only thing she had to leave behind. Other than this one form (and one other saying a lawyer could represent me without me having to fly to Florida), I signed no other docs. And like I said, we had no financial ties.

So do I have nothing to worry about?

Zero assets? What about the disability claim? That is an asset so given there were remaining debts I suggest you use those funds to pay off estate assets. If once they are paid you can use a small estate administration to allow payment of any remaining funds to the appropriate heir.

 

[freeadviceun]

Well I meant zero assets OTHER than the disability claim. So you're saying then that the debt collectors are entitled to 100% of the disability claim, and whatever is left over, would then (and only then) go to her heirs? Since I am sure her debt was much greater than the trivial amount she got form the disability claim, I guess that means all this money is just going towards her debt?

But just to clarify, the debt collectors can't come after me for MORE than what she was awarded for disability, right?

 

[justalayman]

freeadviceun;3332039]Well I meant zero assets OTHER than the disability claim. So you're saying then that the debt collectors are entitled to 100% of the disability claim, and whatever is left over, would then (and only then) go to her heirs? Since I am sure her debt was much greater than the trivial amount she got form the disability claim, I guess that means all this money is just going towards her debt?

there is a ranking order of debt often with the costs of any funeral coming before any other debts but basically, after that, yes, all assets of the estate must be used to pay whatever debts there are.

But just to clarify, the debt collectors can't come after me for MORE than what she was awarded for disability, right?

not unless you accept liability for them.

 

[freeadviceun]

not unless you accept liability for them.

And just to confirm, when I signed that Form 0960-0288 I did NOT "accept liability" for her debts?

So in other words, worst case scenario, the money we received from her disability settlement will likely be lost, but not a penny more?

 

[justalayman]

not unless you accept liability for them

 

[freeadviceun]

Well obviously I would never intentionally accept liability for them. I was just afraid that maybe I UNINTENTIONALLY accepted liability for them when I signed that form. But you say that is not the case, so that's good (if anyone else can confirm, I would sleep much better).

So it sounds like they are just after the money she was awarded from her disability claim, which was such a small amount (relative to her total debt), It won't be the end of the world.

Is there anything I need to do to safeguard myself going forward? Or once they have collected the disability money, will they stop pestering me?