I made a post a few weeks ago but I wanted to make a follow up because I have a lot more information now (talked to my dad for a long time earlier tonight). A little background:
My dad is 77 and has some health problems but lives by himself and is mostly self-sufficient. He'd been asking my mother (separated) for money each to help with his credit card debt and mortgage, but she cut him off this week. I'm their only child.
I can get more exact details if necessary, but roughly he has:
-A $350k mortgage half paid off, $1300 per month.
-$42k in credit card debt that costs him $950 per month
-Social security that pays him around $1000 per month
-A small fishing rod repair business that he runs out of his home. I'm guessing he makes about $800 per month.
-He's been short around $500 per month in past months
-Most expenses are covered by food stamps and other special poverty discounts
-I hadn't realized this before, but he *does* qualify for VA benefits (was in the military 12 years) but hasn't taken them other than help with getting his home refinanced like 10 years ago.
Some specific questions:
1. What options exist through the VA for help with this sort of situation? Do they offer any sort of debt relief or other assistance of that type?
2. He's looked into one loan consolidation program for his credit cards through a company that makes a contract with the bank and gives him a lower payment, but it will only reduce his payments by $200. I'm guessing this won't be enough. There may be better options of a similar sort. Is this something he can negotiate directly with the bank or is it too difficult without the help of an outside party?
3. What are the downsides of chapter 7 bankruptcy? In Washington state it looks like he'd be able to keep his home and his car, and could easily support himself without the burden of credit card payments. Obviously he won't be able to get loans easily, but I don't think he'll need them. Are there significant drawback for me if he passes in the next 4 or 5 years?
Thank you so much!
My dad is 77 and has some health problems but lives by himself and is mostly self-sufficient. He'd been asking my mother (separated) for money each to help with his credit card debt and mortgage, but she cut him off this week. I'm their only child.
I can get more exact details if necessary, but roughly he has:
-A $350k mortgage half paid off, $1300 per month.
-$42k in credit card debt that costs him $950 per month
-Social security that pays him around $1000 per month
-A small fishing rod repair business that he runs out of his home. I'm guessing he makes about $800 per month.
-He's been short around $500 per month in past months
-Most expenses are covered by food stamps and other special poverty discounts
-I hadn't realized this before, but he *does* qualify for VA benefits (was in the military 12 years) but hasn't taken them other than help with getting his home refinanced like 10 years ago.
Some specific questions:
1. What options exist through the VA for help with this sort of situation? Do they offer any sort of debt relief or other assistance of that type?
2. He's looked into one loan consolidation program for his credit cards through a company that makes a contract with the bank and gives him a lower payment, but it will only reduce his payments by $200. I'm guessing this won't be enough. There may be better options of a similar sort. Is this something he can negotiate directly with the bank or is it too difficult without the help of an outside party?
3. What are the downsides of chapter 7 bankruptcy? In Washington state it looks like he'd be able to keep his home and his car, and could easily support himself without the burden of credit card payments. Obviously he won't be able to get loans easily, but I don't think he'll need them. Are there significant drawback for me if he passes in the next 4 or 5 years?
Thank you so much!
Statistics: Posted by freyj6 — Sat Feb 01, 2025 10:06 pm — Replies 0 — Views 65