Married couple 68-70 years old
$20,000 credit card debt
owns the home valued at $150,000 free and clear.
The best I can figure is that they would be allowed about a $23,000 home stead exemption under federal exemptions.
They are on Social Security. The wife works a little, maybe about $300/month. The husband is severely disabled and can't even live the house without help.
She keeps asking me what to do. I have repeatedly tried explaining reverse mortgages, but she just keeps saying she is not eligible because she doesn't owe on the house… And wants to will the house to her daughter. I figure that the daughter would be able to buy back the house for an additional $200/month principal/interest payment (plus taxes and other current monthly expenses).
Would the reverse mortgage be a better route than bankruptcy. They have enough money to cover current monthly expenses. But nothing left over to pay the credit cards.
Wouldn't she be forced to use the equity in the home to pay the credits cards? Right now she is paying nothing.
IF SHE WAS APPROVED FOR BANKRUPTCY--what is likely to happen? With the credit card debt that she can't make payments on? She has no other assets… Old furniture, no jewelry of value, 1 old car in bad condition, no life insurance, etc
Read more: Woudl this person be approved for bankruptcy and not lose her home-NJ?
