Hospital bill

[bvictor]

What is the name of your state? PA
My father had a heart attack 2 years ago and at that time he had no medical coverage. There was a bill of $44K send to him and it has since been forwarded to collection agency. They called and then send a letter stating they will take action. My father is 66 years old and now on social security. He co-owns a house with my mother. My mother is 62yrs old. They don't have the money to pay this. How far can the collection agency take this? Can they put a lein on the house? To put a lein, do they have to take him to court? Can the agency take any other action? If he files bankruptcy, would this go away? Would they go after my mom? Please give me some advise. Thanks.

 

[bigun]

I'd suggest you take your parents to a lawyer and get all of their options explained.
Most bk lawyer will give a free initial consultation.

What sort of equity do they have in the house? Looks like Pa. allows for Federal exemptions of $18K {double for couples}.

http://www.bankruptcyaction.com/paexemptions.htm

 

[bvictor]

Hospital Bill

They only have 2 years left on their mortgage. They have a high equity. At least 80k.

 

[bigun]

Ouch!
They may have to file a Chapter 13 to save the house.
Like I suggested, talk with a lawyer.

 

[Ladynred]

Ahh.. but PA is as 'tenancy by entirety' state - so if their home is deeded in this way, the house may be completely exempt from the debts of only one spouse. Definitely talk to a lawyer. The PA exemptions may completely protect the house, where the federal won't.

 

[bvictor]

Spousal liability

Is it true that my mother could be responsible for the hospital bill eventhough the bill is under my dad? I hear that there is a "spousal liability" under the welfare code that could make the spouse responsible. If so, filing chapter 7 for my dad would not erase the debt. I'm afraid the collection agency might turn around and sue my mother.

Also they have 90K equity on the house they own together and would this equity prevent him from filing chapter 7?