by Guest » Tue Oct 30, 2012 06:18 pm
Hello everyone, I have a bit of a situation and would love some input and advice.
My father recently passed away last month. He left us with a ton of debt due to the fact that he was sick, most of the debt are medical bills.
This is our situation, we are behind payments on our home and electric bill. We were undergoing a Home modification but now that our main income provider is not with us anymore we won't qualify. The check is for about 230k.
I know some people might think I'm trying to cheat the system but I'm honestly not, I owe a lot more on my home than that and I want to play it smart and I would like to save most of the money. I know that when this money is deposited into the bank, all these creditors with come barging at me wanting to collect. I DO intend on paying them all, FYI.
My main concern is my home and the fact that despite this money, we have no income in our home, and I want to qualify for the modification.
This check is under my mother's name and we are trying to figure this out together.
Is there a way where she can open a new bank account somewhere and deposit the check, then after it clears, withdraw it and deposit it into my account?
I am thinking this way, maybe our mortgage bank wont see it and we still might qualify later for a modification after we find a good source of income for the house?
My main question is will this at all affect me, (I am 25 yrs old), in the future when they see that I had this amount of money in my bank account at some point?
My father recently passed away last month. He left us with a ton of debt due to the fact that he was sick, most of the debt are medical bills.
This is our situation, we are behind payments on our home and electric bill. We were undergoing a Home modification but now that our main income provider is not with us anymore we won't qualify. The check is for about 230k.
I know some people might think I'm trying to cheat the system but I'm honestly not, I owe a lot more on my home than that and I want to play it smart and I would like to save most of the money. I know that when this money is deposited into the bank, all these creditors with come barging at me wanting to collect. I DO intend on paying them all, FYI.
My main concern is my home and the fact that despite this money, we have no income in our home, and I want to qualify for the modification.
This check is under my mother's name and we are trying to figure this out together.
Is there a way where she can open a new bank account somewhere and deposit the check, then after it clears, withdraw it and deposit it into my account?
I am thinking this way, maybe our mortgage bank wont see it and we still might qualify later for a modification after we find a good source of income for the house?
My main question is will this at all affect me, (I am 25 yrs old), in the future when they see that I had this amount of money in my bank account at some point?
Posted: Tue Oct 30, 2012 07:19 pm Post Subject:
Rule of thumb: If you THINK what you're doing (or want to do) is wrong, you're probably right. I have an idea; why don't you call the bank and ask them. I'm confident they'll give you the correct information.
Posted: Wed Oct 31, 2012 10:14 am Post Subject:
I'm confident they'll give you the correct information.
I think that you have some misplaced confidence. My guess is that any answer that he gets from the bank will have some elements of truth, but will be an answer that is in the bank's best interest.
I DO intend on paying them all, FYI.
Why? I'm not trying to tell you that you should or shouldn't. Rather, I am suggesting that you think long and hard about what you should and should not do. For instance, should you pay back a creditor of your dad's, if you are not legally obligated to do so AND it is not in your mom's best interest to do so?
This site is not a good source to get questions like you are asking answered.
Posted: Wed Oct 31, 2012 10:02 pm Post Subject:
My guess
Your guess is, I suppose, no better than anyone else's
is that any answer that he gets from the bank will have some elements of truth
Let me get this straight. You're basically saying: Bank representatives will probably let you know if what you plan to do with what could be their money is illegal to some degree. This could very well be the truth, but you're probably not going to like what you hear.
but will be an answer that is in the bank's best interest.
Please direct me to a place in any state's insurance, business or criminal code where it specifically states that banks should be frowned upon for looking out for their own best interest.
Rather, I am suggesting that you think long and hard about what you should and should not do.
Legally speaking?
For instance, should you pay back a creditor of your dad's, if you are not legally obligated to do so AND it is not in your mom's best interest to do so?
I may have to agree with you on this one. If you are not legally obligated to pay your dad's bills, why in the world would you want to do so?
Then again, if your mom has a $230,000 check and you can find a way to cheat the bank into allowing you to spend it things other than you mom's obligations, what the heck. I was being sarcastic.
I know some people might think I'm trying to cheat the system.
You are absolutely correct.
This site is not a good source to get questions like you are asking answered.
You are correct again. On this site, we do our best to answer questions about various types of insurance, regulation and legal matters. I don't know of anyone on here who advises people on matters like yours.
Posted: Thu Nov 01, 2012 08:36 am Post Subject:
We were undergoing a Home modification but now that our main income provider is not with us anymore we won't qualify
Sadly, the best solution might just be going to bankruptcy court. If you have no income, you cannot be expected to pay your bills. Even with $230,000 in hand from a life insurance company, the bankruptcy court is unlikely to make you use 100% of it to pay your bills. What resources would you have to live on after that?
You could take the check to one of those check cashing outfits -- and see how long it takes them to recover from the shock of being asked to cash a check that large. You could also open up an e-bank account with any number of Internet-only banks. All you would do is mail them the check to deposit it. You could perhaps keep that account hidden long enough to get your bankruptcy petition filed, and that would block your creditors from accessing the money for the time being.
Even in bankruptcy, you are probably looking at having to sell your home. But the bankruptcy court will give you the time needed to get the best possible price for the property -- no "fire sales" allowed. And whatever you get, the lender will get, and then have to discharge any unpaid balance. They may have PMI on the loan to protect against that.
I agree with the comments above that no one is obligated to pay any of your father's sole/separate unsecured debts. Every one of those died with him. They are uncollectable, except perhaps through the probate court. If you are not required to open a probate action (due to a small estate), those creditors are simply out of luck.
Unless you make any attempt to pay the debt -- even if only a dime. Then you may be held legally responsible for the unpaid balance. So resist the temptation to pay a few bucks to get a debt collector to stop calling. Send them all CEASE AND DESIST letters.
Posted: Thu Nov 01, 2012 11:50 am Post Subject:
Unless you make any attempt to pay the debt -- even if only a dime. Then you may be held legally responsible for the unpaid balance. So resist the temptation to pay a few bucks to get a debt collector to stop calling. Send them all CEASE AND DESIST letters.
LISTEN TO MAX!!!
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