Probate / Debt after death

[SouthEndZoner]

Hi Everyone- I haven't posted on ASFN in along time and I've NEVER posted on this particular forum, but I have some questions in case anyone else has gone through anything similar to what we are going through.

Here is where I'm at- My wife passed away about a month ago. We'd been married for 5 and 1/2 years. We have a 14 month old son. Well, like most young couples, we are/were drowning in debt. I closed all of her credit cards and found out that she had even more debt than I had known.
Now the credit card companies have begun to send me some intimidating letters. Coincidentally, my wife worked for Chase and spoke to me about this process not that long ago. She explained to me that if the deceased didn't leave money, or a way to pay these debts, it has to be forgiven.
The rest of my situation goes like this- I bought my house (completely in my name) before we got married. She didn' leave anything of any kind of monetary value. Our car is in both of our names, but that's it. If I had the money, I'd pay them. But I don't have anything.
There is supposed to be a life insurance check coming our way, but it wouldn't even come close to paying all of her debt and paying down some of mine so that my son and I can have shot at even keeping our house and affording the mortgage with just my paycheck. Should I hire a lawyer and if so are there any recommendations. If anyone has gone through this, PLEASE email me or reply to this post. This is getting kind of scary and I really don't need this at this time. If it wasn't for my son, I think I'd be suicidal by now.

 

[Gaddabout]

My wife passed last April and left behind thousands of dollars in medical debt, all in my name. I've been in the process of negotiating it down ever since. That's my best advice. If you owe $100 and can pay $50, they'll often take it. Just keep in mind you have to pay IRS a gift tax on that $50 they "gave" you. Also, when negotiating, hit them on the gratuitous interest and penalties they can surely knock off. You might be able to reduce that debt bit by bit and make it something you can manage.

As for your home, you might want to call a lawyer. Arizona is a homestead state. If you declared bankruptcy, state law protects you up to a certain amount, I believe. Can't hurt to at least set up one appointment and get some sound legal advice. Worst case scenario is he just confirms what you're all worried about right now, so you've got nothing to lose except whatever it costs for an hour of the lawyer's time.

 

[SouthEndZoner]

Thanks, Gaddabout.

 

[O]

My condolences, SouthEndZoner.

 

[Gaddabout]

I forgot to add, you only have to pay gift tax if you receive more than $600 total from all of your arrangements.

 

[Yuma]

When my dad died a couple years ago, He had insurance and I was paying off his medical bills with the insurance money. Then as it was getting close on money, I called a couple of the doctors offices and explained he was dead, and I would make payments as I could. Surprisingly, the offices I called wrote off his debt since he died. They didn't ask me for a copy of his death certificate or anything. I thought that was pretty cool of them.

I recently had an acquaintance go through something similar and their lawyer had them declare bankruptcy. They are in AZ. They got to keep the house, the primary vehicle, etc. They gave back boats, and ATVs, etc. They had to meet with a bankruptcy judge, but they said they lawyer handled everything, and they were in and out of court in minutes. They said the lawyer was well worth the money.

Condolences.

 

[SouthEndZoner]

Thank you, O and Yuma. Do you know the lawyer's name, Yuma?

 

[Yuma]

Thank you, O and Yuma. Do you know the lawyer's name, Yuma?

I can ask my friend, but I am guessing it's a guy from Yuma. I'll ask to make sure.

 

[Gaddabout]

That would be Chapter 7. I've done it before. Cost me $2,500 for the lawyer. If I had to do it over again I would do research and do it myself, because I'm not sure he did much more than file paperwork.

 

[Dback Jon]

Sorry to hear about your loss, SEZ

 

[SouthEndZoner]

Thank you, DbackJon.

 

[Yuma]

My friend doesn't remember the guy's name but he is a lawyer in Yuma. He's not sure where his paperwork is. He has gotten married since then and I think his new wife has done the remodel thing and he's not sure where some of his stuff is. Sorry.

 

[SouthEndZoner]

Thanks for trying , Yuma. I met with an attorney on Friday, but I wasn't impressed. Instead of answering my questions, he referred me to one of his bankruptcy lawyer friends. I'm going to keep looking around or maybe just up and handle it myself.

 

[Yuma]

Thanks for trying , Yuma. I met with an attorney on Friday, but I wasn't impressed. Instead of answering my questions, he referred me to one of his bankruptcy lawyer friends. I'm going to keep looking around or maybe just up and handle it myself.

Find out how much it will cost you from that new referral. It may well be worth 1 to 2 thousand someone else in this thread said it cost them to have a lawyer do everything right, plus your time, etc. I know it's a pain, but you don't want it done wrong and have some creditors having the ability to come back on you after you thought everything was over with.

FWIW, I hate that lawyer thing that happened to you on Friday. My wife and I had a legal issue once, and this lawyer said to come in and talk to him about it. We did, and he talked for an hour about his life, the community, etc. At the end of the hour he outlined why he couldn't take our case, and then had the nerve to charge us for the full hour. I felt like punching that old windbag in the face!

 

[SouthEndZoner]

Thanks for the advice, Yuma. I'm really disappointed in lawyers though. I've never come across an entire industry that has lived up to all of their negative stereotypes. I've spoken to 5 now and I can honestly say that I don't feel comfortable with any of them. The very first guy I spoke with seemed like a genius compared to the next 4. Maybe, I'm just having bad luck.

 

[Brian in Mesa]

Sorry for your loss, SEZ.

 

[SouthEndZoner]

Thanks, Brian.