Medical bills + very low income

[kc0jsj]

Hello,

I'm not quite sure where to start, but I'm posting this on behalf of my father. He is currently in the hospital and has no insurance. His income has been extremely low for the last couple of years and he is in the middle of a divorce which is forcing him to sell his house. He has no savings.

Needless to say, he is in a very dire situation. I am looking for any advice as I cannot financially support him myself. When he is released from the hospital, his first priority is to sell his house (which will hopefully cover some of the medical bills). But then, the obvious question is: Where will he live after that?

Should he file for bankruptcy? Are there any options for people in his situation? Is there actually "Affordable Healthcare" available?

He is a resident of Missouri (I'm guessing things change depending on what state you're from)

[snafu]

You have asked a very complex question, difficult to answer without details.

As strange as it sounds, it's quite expensive to file for bankruptcy, starting with the difficulties involved in preparation and filing of documents. There are a great many types of debt not removed by filing bankruptcy. It's necessary for father to meet with councillor from a nonprofit budget and credit counseling agency approved by the United States trustee or bankruptcy administrator and to seek advice on Orderly Payment of Debt procedures.

Does DF have a job? Has he applied for any of the federal, state or municipal aid programs? Does he have a case/social worker? The USA mandated health insurance earlier this year, did father apply? Did he choose to ignore the law? Who will prepare the house for sale and look after father during recovery?

Even in the midst of divorce proceedings, the spouse still has some responsibilities for their partner. What are the terms and conditions of the legal separation?

[kc0jsj]

Thanks for the reply!

Yes... I'll admit that it's a very complex set of questions for a complex situation. I guess I'm just trying to wrap my head around everything that's happening.

To answer some of your questions (to the best of my ability), he is self employed. Ironically enough, he's a counselor. He typically does marriage counseling, but his list of clients has gotten smaller and smaller. I do not know what his annual income is, but I'm under the impression that each year, it becomes less.

Last year, he worked part time for the State of Missouri and did have health insurance through that, but he left that position in December of 2013 and has not been able to find insurance that he could afford. So, to answer your question, he has not applied for insurance since the mandate was put into effect.

As far as I know he has not applied for any federal, state or municipal aide, but if that is indeed out there, I would be willing to look into it - just not sure where to start, or who to talk to.

Lastly, I am starting a new job next week that provides insurance. I, myself, will be covered before the end of the year. Is it possible (...or smart) to add him on to my own insurance plan?

Thanks again for the reply.

~Michael

[UDRogue]

First things first.

See if the hospital has some kind of social worker that you can talk to about his financial situation, they know what sort of programs might be available to help with his medical bills.

Talk to the billing department at the hospital. Explain his situation and can you go ahead and arrange a small monthly payment toward the bill because he won't be able to pay a large bill. Be proactive with that so that he doesn't end up being sent to a collection agency.

It sounds like he has been in a declining financial situation for some time but the divorce plus hospitalization has hit him with not one but two huge crises, that have now turned this into an emergency. Treat it as such.

In an emergency the important things are shelter, water, and food, in that order. Does he have to sell the house as part of the divorce or can there be a negotiation? Keeping a roof over his head needs to be top priority. Depending on the value of the house and how much equity is in it, it may be best to sell and downgrade or it may be best to just stay put in it.

You (he) will have to look closely at all his assets, debts, and income, and figure out where to go from here. If his net worth is very close to zero, he might be able to qualify for Medicaid.

PS Edit, about adding him to your plan, I think he would have to be named your dependent.