Hannibal, MO asked in Bankruptcy and Estate Planning for Missouri

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.

Related Topics:
2 Lawyer Answers
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: What is your question?

David Reese Fondren
David Reese Fondren
  • Estate Planning Lawyer
  • St. Charles, MO
  • Licensed in Missouri

A: 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.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.