Q: I'm the trustee of an elderly parent's irrevocable trust. I need to file for bankruptcy due to medical debt.
Located in Missouri. I have a special needs child, and am being buried in medical debt related to the care of said child. I've talked to a credit counseling agency, and after looking at my income and debts, they determined bankruptcy is my best option.
If your "special needs" child has permanent problems requiring long term or even life long medical treatment, then a bankruptcy is only a temporary band-aid. All medical bills incurred after the date of filing are not included.
Bankruptcy can be a solution, IF, you can find a way to deal with future medical expenses. Caveat: This is a general answer. This may not apply 100% to you, as I know very little about your situation. The trust could be a big factor here.
If you are employed and subject to garnishment, you may be forced into it at some time. Right now, you need to be working on a solution to pay your child's bills.
You really need to make an appointment with a bankruptcy attorney before making a final decision. The counselors are not attorneys, and although they have a lot of knowledge, you should still get a detailed review.
BTW: as trustee (not trustor or grantor), the trust assets are not yours and do not become part of the bankruptcy estate or subject to creditors attempts to collect a judgment. They will when your parents die and if you are beneficiary. Something important for your attorney to take into account.
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