My mother recently passed away and we are dealing with how my 72 yo. step father would be off financially. Seems like my mother had ran up two of his credit cards that are in his name up to around 30k. We know this because there were collection notices offering to settle the debt for like half off. Now his income situation is he gets about 1250 a month in railroad retirement in his bank account, 250 of that goes to alimony to his ex. The car they had was put in his name right before her death and is worth maybe 3800, its paid off. The house they have is owner financed over 35 years ago, and has around 68 payments left, about 17k, which is half the original purchase price. Current market value is maybe 60k. yes, she missed a few payments on the 30 year note, but luckily the person she bought the house from is very understandable. Me and my wife are probably going to assume the loan and pay it off, and get the house in our name and have him live there. My mothers name is currently on the home, as she got the house when my mother and father divorced. The only other thing is my mothers life insurance policy, probably around 43k that he should be getting soon. I know the funeral(6k) would be deducted from that. What would the best course of action be in this situation. Try to settle with the collection agencies, file for bankruptcy?
Thanks for any input.
