My mom has been a stay-at-home parent with a small allowance from my dad. They are still legally married, so she needs to stay on his insurance for medical issues, which makes it hard for her to work. She just told me that she has $70k in credit card debt and still needs surgery for her hip and dental work. I’m not sure what to advise her about finances. What are your thoughts?
Ty said:
70k in debt for what?
All those things you see at Target that aren’t really necessary
Bankruptcy, Medicaid, and food stamps might be options
Blake said:
Bankruptcy, Medicaid, and food stamps might be options
Exactly, that’s what bankruptcy is for
Your dad is likely on the credit card. She wouldn’t get that kind of limit without his income. He is still responsible for it
Wynn said:
Your dad is likely on the credit card. She wouldn’t get that kind of limit without his income. He is still responsible for it
When they divorce, they will need to disclose their debts, and it will be split between them
Wynn said:
Your dad is likely on the credit card. She wouldn’t get that kind of limit without his income. He is still responsible for it
He never claimed it was just one card …
Wynn said:
Your dad is likely on the credit card. She wouldn’t get that kind of limit without his income. He is still responsible for it
I was about to say, your dad has $70k in debt too, that’s wild
If her condition lasts more than a year, she can apply for disability through social security. If your father is retired, she can apply under him. You should call your local office with her to see what she qualifies for
@Kai
She’s a stay-at-home mom. She won’t get SSDI because she hasn’t worked enough in the last 10 years to qualify. They might count his income and assets, so getting SSI could be tricky. If she gets any assets from the divorce, that could disqualify her too. She can’t get benefits from SS unless he’s already on disability or retirement
@Kai
I’ve worked with Social Security for years. A bad hip won’t qualify her for disability. They’ll say she can still work in some way
70k is a lot, especially with no income. She should look into debt relief programs like this one (https://americareliefnow.com) or Nfcc.org; one of them could help her
If they are still married, this debt is also your father’s. She can file for divorce and let the court divide their assets and debts. He may need to provide or pay for her medical insurance. There’s also alimony and his retirement plans to think about. She should talk to a lawyer about her options
@Lior
It depends on how long she’s had these medical issues and what the debt was for. Not sure what she can do right now, except maybe apply for social security disability or file for bankruptcy. Honestly, it might be better to go bankrupt before the divorce, so there’s less debt to divide later
@Drew
Exactly, that’s why she needs a lawyer, not just this forum
@Drew
The problem will be finding somewhere to live after that. Her credit will drop, and renting will be hard unless she has a place lined up. If she has to move soon, bankruptcy could complicate things
@Lior
THIS! You need to tell your dad about this debt since they are still legally married. What did she spend the 70k on? She should cut up those cards and contact a debt relief organization. She needs to stick to a strict budget and stop spending
Bankruptcy seems like a good option. Or if your dad is doing well, maybe she can negotiate some credit card payoff in the divorce
Is divorce the next step? If so, that needs to be settled in the divorce since she’s a stay-at-home parent, and your dad will have to take care of those debts