my dad's debt

[ZOIE]

What is the name of your state? Indiana
My dad has a motorhome that has been unuseable for at least 5 years. He has income of SSI & $6,900 a year for other income (rents land for farming not in his name), he only has $20,000 left in bank from retirement fund. The other $50,000 went to nursing home costs in the last 6 months. He owns nothing but the motorhome and about 1/4 acre of land at Country Squires lake in Jennings Co.(not near the lake). We wish to get rid of this also because of fees. Can he file BK7 & let them take the RV? Will they also take the land? Thanks, Zoie

 

[BelizeBreeze]

What is the name of your state? Indiana
My dad has a motorhome that has been unuseable for at least 5 years. He has income of SSI & $6,900 a year for other income (rents land for farming not in his name), he only has $20,000 left in bank from retirement fund. The other $50,000 went to nursing home costs in the last 6 months. He owns nothing but the motorhome and about 1/4 acre of land at Country Squires lake in Jennings Co.(not near the lake). We wish to get rid of this also because of fees. Can he file BK7 & let them take the RV? Will they also take the land? Thanks, Zoie

First, do you have power of attorney for dad?

 

[ZOIE]

My sister has power of attorney. I am trying to find info to help her.

 

[BelizeBreeze]

My sister has power of attorney. I am trying to find info to help her.

then tell sis to consult a local attorney with two words: Medicade fraud.....if the attorney doesn't toss her out then he/she will direct her as to how best to convert the assets.

 

[ZOIE]

Why Medicad Fraud? My dad only has Medicare & AARP.

 

[Ladynred]

First of all, it would be wise to consult a bankruptcy attorney. Your father has 20K in the bank, in cash. If he files for bankruptcy, the Trustee will take it ALL to pay off his creditors. If he has less than 20K in debts, he'll get back what isn't used up. If he is still paying on the RV, he could choose to surrender it in a bankruptcy, same for the land. A lot depends on the equity in the RV and the property. If the exemptions won't protect the assets, then yes, the Trustee would take them.

Given that your father would lose the 20K in a bankruptcy, another solution for getting rid of the RV and the land should probably be found.