Client needs a loan

[NotCranky]

[quote=Troubled Loner]flu, they (husband and wife) are mid-50’s. Their equity estimate is actually higher, I believe $300,000 is accurate.

Russell, they both have medical conditions, cannot get medical insurance. They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically). If they were able to pay off the $75,000 of medical bills, they would probably be OK (the monthly payments are quite high).[/quote]
That’s what I am getting at Troubled Loaner, they can’t get insurance where poor people have free medical. Maybe they could pay it off assuming those “disproportionate costs”. That is admirable, but what about future problems with health? They are at high risk for going down the tubes when there have been more irresponsible and physically healthy people, with hidden assets or from families of some means, getting bailouts.

[permabear]

[quote=Troubled Loner]They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically).[/quote]

If they can display hardship to the insurance company, they should be able to settle the bills for much lower than their face value. Kinda like a short sale.

I have an uncle in a similar position. He had to have emergency bypass surgery while not covered by insurance. The total bill was $150k or so. He paid a very nominal amount each month – I think $50 – and eventually the company realized he wasn’t going to pay it off. He showed his financial situation, and the company settled for something like $5000 total.

As a side note to others, retirement accounts are protected against debt collectors. The worst thing you can do is deplete your IRA/401k paying bills.

http://www.nedap.org/hotline/exempt.html

[permabear]

[quote=Troubled Loner]They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically).[/quote]

If they can display hardship to the insurance company, they should be able to settle the bills for much lower than their face value. Kinda like a short sale.

I have an uncle in a similar position. He had to have emergency bypass surgery while not covered by insurance. The total bill was $150k or so. He paid a very nominal amount each month – I think $50 – and eventually the company realized he wasn’t going to pay it off. He showed his financial situation, and the company settled for something like $5000 total.

As a side note to others, retirement accounts are protected against debt collectors. The worst thing you can do is deplete your IRA/401k paying bills.

http://www.nedap.org/hotline/exempt.html

[permabear]

[quote=Troubled Loner]They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically).[/quote]

If they can display hardship to the insurance company, they should be able to settle the bills for much lower than their face value. Kinda like a short sale.

I have an uncle in a similar position. He had to have emergency bypass surgery while not covered by insurance. The total bill was $150k or so. He paid a very nominal amount each month – I think $50 – and eventually the company realized he wasn’t going to pay it off. He showed his financial situation, and the company settled for something like $5000 total.

As a side note to others, retirement accounts are protected against debt collectors. The worst thing you can do is deplete your IRA/401k paying bills.

http://www.nedap.org/hotline/exempt.html

[permabear]

[quote=Troubled Loner]They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically).[/quote]

If they can display hardship to the insurance company, they should be able to settle the bills for much lower than their face value. Kinda like a short sale.

I have an uncle in a similar position. He had to have emergency bypass surgery while not covered by insurance. The total bill was $150k or so. He paid a very nominal amount each month – I think $50 – and eventually the company realized he wasn’t going to pay it off. He showed his financial situation, and the company settled for something like $5000 total.

As a side note to others, retirement accounts are protected against debt collectors. The worst thing you can do is deplete your IRA/401k paying bills.

http://www.nedap.org/hotline/exempt.html

[permabear]

[quote=Troubled Loner]They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically).[/quote]

If they can display hardship to the insurance company, they should be able to settle the bills for much lower than their face value. Kinda like a short sale.

I have an uncle in a similar position. He had to have emergency bypass surgery while not covered by insurance. The total bill was $150k or so. He paid a very nominal amount each month – I think $50 – and eventually the company realized he wasn’t going to pay it off. He showed his financial situation, and the company settled for something like $5000 total.

As a side note to others, retirement accounts are protected against debt collectors. The worst thing you can do is deplete your IRA/401k paying bills.

http://www.nedap.org/hotline/exempt.html

[Coronita]

[quote=Russell][quote=Troubled Loner]flu, they (husband and wife) are mid-50’s. Their equity estimate is actually higher, I believe $300,000 is accurate.

Russell, they both have medical conditions, cannot get medical insurance. They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically). If they were able to pay off the $75,000 of medical bills, they would probably be OK (the monthly payments are quite high).[/quote]
That’s what I am getting at Troubled Loaner, they can’t get insurance where poor people have free medical. Maybe they could pay it off assuming those “disproportionate costs”. That is admirable, but what about future problems with health? They are at high risk for going down the tubes when there have been more irresponsible and physically healthy people, with hidden assets or from families of some means, getting bailouts.[/quote]

TL,

More questions….

*Are these medical issues ongoing or was a it a one time thing? If ongoing, I don’t see this being a permanent fix either.If this is an ongoing medical issue with high costs, it doesn’t seem like it would pencil out for lenders..

*So they have $300k in equity, but just curious, what is the liability left on the home… Also, have they considered selling their home and renting?

Personally, if their situation is ongoing medical costs, I would think either trying to negotiate with creditors or filing BK would be a good option. It’s too late but I would not have depleted the 401k/retirements, since I believe creditors cannot go after those…

There is one other thing that ..It’s horrible for me to bring up but…Do they have any life insurance policies? If so, perhaps a lender could be found such that they could sell all or part of the policy in exchange for the needed money.

http://www.thefreelibrary.com/Money+for+your+life+%28insurance%29%3A+selling+a+policy+for+cash+is+not+as…-a0191765575

[Coronita]

[quote=Russell][quote=Troubled Loner]flu, they (husband and wife) are mid-50’s. Their equity estimate is actually higher, I believe $300,000 is accurate.

Russell, they both have medical conditions, cannot get medical insurance. They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically). If they were able to pay off the $75,000 of medical bills, they would probably be OK (the monthly payments are quite high).[/quote]
That’s what I am getting at Troubled Loaner, they can’t get insurance where poor people have free medical. Maybe they could pay it off assuming those “disproportionate costs”. That is admirable, but what about future problems with health? They are at high risk for going down the tubes when there have been more irresponsible and physically healthy people, with hidden assets or from families of some means, getting bailouts.[/quote]

TL,

More questions….

*Are these medical issues ongoing or was a it a one time thing? If ongoing, I don’t see this being a permanent fix either.If this is an ongoing medical issue with high costs, it doesn’t seem like it would pencil out for lenders..

*So they have $300k in equity, but just curious, what is the liability left on the home… Also, have they considered selling their home and renting?

Personally, if their situation is ongoing medical costs, I would think either trying to negotiate with creditors or filing BK would be a good option. It’s too late but I would not have depleted the 401k/retirements, since I believe creditors cannot go after those…

There is one other thing that ..It’s horrible for me to bring up but…Do they have any life insurance policies? If so, perhaps a lender could be found such that they could sell all or part of the policy in exchange for the needed money.

http://www.thefreelibrary.com/Money+for+your+life+%28insurance%29%3A+selling+a+policy+for+cash+is+not+as…-a0191765575

[Coronita]

[quote=Russell][quote=Troubled Loner]flu, they (husband and wife) are mid-50’s. Their equity estimate is actually higher, I believe $300,000 is accurate.

Russell, they both have medical conditions, cannot get medical insurance. They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically). If they were able to pay off the $75,000 of medical bills, they would probably be OK (the monthly payments are quite high).[/quote]
That’s what I am getting at Troubled Loaner, they can’t get insurance where poor people have free medical. Maybe they could pay it off assuming those “disproportionate costs”. That is admirable, but what about future problems with health? They are at high risk for going down the tubes when there have been more irresponsible and physically healthy people, with hidden assets or from families of some means, getting bailouts.[/quote]

TL,

More questions….

*Are these medical issues ongoing or was a it a one time thing? If ongoing, I don’t see this being a permanent fix either.If this is an ongoing medical issue with high costs, it doesn’t seem like it would pencil out for lenders..

*So they have $300k in equity, but just curious, what is the liability left on the home… Also, have they considered selling their home and renting?

Personally, if their situation is ongoing medical costs, I would think either trying to negotiate with creditors or filing BK would be a good option. It’s too late but I would not have depleted the 401k/retirements, since I believe creditors cannot go after those…

There is one other thing that ..It’s horrible for me to bring up but…Do they have any life insurance policies? If so, perhaps a lender could be found such that they could sell all or part of the policy in exchange for the needed money.

http://www.thefreelibrary.com/Money+for+your+life+%28insurance%29%3A+selling+a+policy+for+cash+is+not+as…-a0191765575

[Coronita]

[quote=Russell][quote=Troubled Loner]flu, they (husband and wife) are mid-50’s. Their equity estimate is actually higher, I believe $300,000 is accurate.

Russell, they both have medical conditions, cannot get medical insurance. They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically). If they were able to pay off the $75,000 of medical bills, they would probably be OK (the monthly payments are quite high).[/quote]
That’s what I am getting at Troubled Loaner, they can’t get insurance where poor people have free medical. Maybe they could pay it off assuming those “disproportionate costs”. That is admirable, but what about future problems with health? They are at high risk for going down the tubes when there have been more irresponsible and physically healthy people, with hidden assets or from families of some means, getting bailouts.[/quote]

TL,

More questions….

*Are these medical issues ongoing or was a it a one time thing? If ongoing, I don’t see this being a permanent fix either.If this is an ongoing medical issue with high costs, it doesn’t seem like it would pencil out for lenders..

*So they have $300k in equity, but just curious, what is the liability left on the home… Also, have they considered selling their home and renting?

Personally, if their situation is ongoing medical costs, I would think either trying to negotiate with creditors or filing BK would be a good option. It’s too late but I would not have depleted the 401k/retirements, since I believe creditors cannot go after those…

There is one other thing that ..It’s horrible for me to bring up but…Do they have any life insurance policies? If so, perhaps a lender could be found such that they could sell all or part of the policy in exchange for the needed money.

http://www.thefreelibrary.com/Money+for+your+life+%28insurance%29%3A+selling+a+policy+for+cash+is+not+as…-a0191765575

[Coronita]

[quote=Russell][quote=Troubled Loner]flu, they (husband and wife) are mid-50’s. Their equity estimate is actually higher, I believe $300,000 is accurate.

Russell, they both have medical conditions, cannot get medical insurance. They have depleted their IRA’s and pensions down to nothing, they can no longer pay the medical bills, and they are considering bankruptcy, but really don’t want to (they don’t feel it is right ethically). If they were able to pay off the $75,000 of medical bills, they would probably be OK (the monthly payments are quite high).[/quote]
That’s what I am getting at Troubled Loaner, they can’t get insurance where poor people have free medical. Maybe they could pay it off assuming those “disproportionate costs”. That is admirable, but what about future problems with health? They are at high risk for going down the tubes when there have been more irresponsible and physically healthy people, with hidden assets or from families of some means, getting bailouts.[/quote]

TL,

More questions….

*Are these medical issues ongoing or was a it a one time thing? If ongoing, I don’t see this being a permanent fix either.If this is an ongoing medical issue with high costs, it doesn’t seem like it would pencil out for lenders..

*So they have $300k in equity, but just curious, what is the liability left on the home… Also, have they considered selling their home and renting?

Personally, if their situation is ongoing medical costs, I would think either trying to negotiate with creditors or filing BK would be a good option. It’s too late but I would not have depleted the 401k/retirements, since I believe creditors cannot go after those…

There is one other thing that ..It’s horrible for me to bring up but…Do they have any life insurance policies? If so, perhaps a lender could be found such that they could sell all or part of the policy in exchange for the needed money.

http://www.thefreelibrary.com/Money+for+your+life+%28insurance%29%3A+selling+a+policy+for+cash+is+not+as…-a0191765575

[Troubled Loner]

Thanks to all of you who responded to my post, your thoughts and suggestions were very helpful.

[Troubled Loner]

Thanks to all of you who responded to my post, your thoughts and suggestions were very helpful.

[Troubled Loner]

Thanks to all of you who responded to my post, your thoughts and suggestions were very helpful.

[Troubled Loner]

Thanks to all of you who responded to my post, your thoughts and suggestions were very helpful.

[Author]

Posts