For a bit of background:
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Father had a heart attack 5 months ago, just got approved for SS Disability, so he's not going back to work(no real surprise, it was bad)
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I'm now in charge of his finances. I've gaine PoA along the way, so I've been doing this since September, but so far my general approach has been hold off on paying medical bills until they were confirmed, followed by pay them on cards I can 0% transfer too, followed by, ... well, not responding at the moment
So yeah, that last part is going to be a problem at some level, but I'm trying to figure out how bad and what to do about it.
His finances: Assets:
- ~$45k in liquid assets(cash/taxable investments)
- $383k retirement assets(tIRA, 401k, and $31k of that is in a rIRA)
- About $30k equity($220k mortgage, $250k townhouse)
Debt(excluding house)
- CC debt at 0%: $24k
- Unpaid Medical: $ 5,461 (I think)
He loses about $600 per month. That's due to disabilityb eing $2500 while mortgage + HOA = $2100, and other living expenses + monthly minimum's on credit cards.
He also has caregivers(which while I've gotten several opinions, he can't really live without to some extent). They aren't factored in this budget, but I will draw from assets as needed since they're a medical necessity, so consider them not part of this. They are however expensive, resulting in most of his CC debt(which I shove to 0% offers). About $1400/week.
So... given his small $2500/month payment is already generating a $600 loss/mo, I'm sure every regular on here saw his expense level, saw his income level, and saw the same thing I did... he's burning through savings at way too high of a rate.
My thought... he's going bankrupt... then drawing down savings until he's medicaid eligible.
My concern is if I ignore his creditors, at what point does that become a problem when he needs it? How far should those 0% cards go? He has one card with a $45k limit, should I max that?
That's the ultimate point of my question... how long do I fight before just giving up and maxing the card, to let the dam break and bankruptcy wipe it all away.
No... I don't feel good doing this. But honestly, I have no choice. He has to live near us. We're in our late 20s/early 30s with a kid and/or one on the way. We can't take him in, but he's only 60 + 15 days... he's too young for most facilities(and benefits).
Any advice on how to prolong his assets without crippling his credit score until he will no longer need it is appreciated.
For what it's worth, it was 800, now is about 715, and dropping due to high utilization.
He's at the bare minimum expense level, and with his current disability(NJ ST disability is $2500/mo but SS should be around there) he loses about $600/month.
TL;DR: My 60yo father is now officially disabled, can't afford his monthly expenses without retirement fund drainage, let alone the medical costs associated with him being brought back to life(he literally died) and cared for. When do I throw up the white flag of bankruptcy?
edit: formatting
edit2: I appreciate those who don't have an answer who are upvoting in hopes someone with one will see this post and help. Thank you.
Edit 3: Financials:
| Name | Cost |
|---|---|
| Finances: | |
| Liquid Assets: | $ 36,052 |
| Cash: | $ 9,711 |
| Taxable Investment account | $ 8,301 |
| Ally | $ 18,040 |
| Current Bills: | $ 31,306 |
| Credit Cards: | $ 24,990 |
| BoA Travel | $ 31 |
| BoA Cash | $ - |
| BoA Amex | $ (25) |
| BoA Plat | $ (25) |
| Chase Amazon | $ 1,472 |
| Fidelity Card | $ 10,815 |
| Wells Fargo | $ 605 |
| Barclays | $ 12,118 |
| Medical Outstanding: | $ 6,316 |
| Retirement Assets: | $ 386,114 |
| Roth IRA: | $ 31,344 |
| Traditional IRA: | $ 34,105 |
| 401k: | $ 320,665 |
| Townhouse Equity: | $ 28,830 |
| Mortgage | $ (219,882) |
| Townhouse Estimate | $ 248,712 |
| Monthly Income: | $ 2,553 |
| Monthly Expenses(Currently): | $ 3,387 |
| Electric: | $ 100 |
| Natural Gas: | $ 100 |
| Phone: | $ 45 |
| Life Insurance: | $ 236 |
| Gym: | $ 10 |
| HOA: | $ 310 |
| Mortgage: | $ 1,806 |
| Food: | $ 250 |
| Cable/Internet | $ 185 |
| Chilton Bill monthly plan($1908 total) | $ 144 |
| Barclays Payment | $ 121 |
| 1/3 Sewer | $ 80 |
| Monthly gain/(loss): | $ (834) |
| Cash | $ 36,052 |
| Current Bills | $ 31,306 |
| Net Current Cash | $ 4,746 |
Addendum: Yes, I realize cable is high, compared to the costs I'm dealing with, it seems a drop in the bucket for someone who is stuck watching TV all day.
Yes, I can consider cancelling his life insurance... though given the situation, that doesn't seem the better overall financial move. I'd rather cover his costs for a portion of the insurance for example.
Yes... that gym membership should be cancelled... but he honestly talks about going back there despite his doctors saying he's not ready yet. I don't have the heart to cancel that $10/mo bill. I'll eat that myself if needed.
Submitted February 15, 2018 at 01:42AM by jeo123 http://ift.tt/2C2coLe
