Q: Can my elderly parents look into assisted living facilities while waiting for their bankruptcy to be finalized?
Bankruptcy was filed in Nov 2022 and is still being reviewed. Both parents have significant health issues that will require them to seek alternative living situations in the near future but they are finding there is a shortage of appropriate housing options coupled with long waiting lists for application. Can they submit lease/housing applications and be added to waiting lists while the bankruptcy is still being reviewed? Or will that negatively affect the bankruptcy outcome?
A:
You don't disclose a critical fact- are your parents in a Chapter 7 or Ch. 13 bankruptcy?
If it's a Chapter 7, the "curtain" dropped on the date the case was filed, so sure, your parents can do whatever they want/can at this point.
If it's a Chapter 13, and a sale of assets (their home) or taking on a new debt is involved, then a modification of the Plan is probably required, subject to objection by the Ch. 13 Trustee or any interested creditor or party.
There is a practical problem. Especially if there's a "waiting list" at any facility, it is going to want to take in new people who can definitely pay for that. A bankruptcy case, especially a recent one, and especially where the Discharge has not yet been entered, is a red flag.
Timothy Denison agrees with this answer
A: They can look into anything the wish but I would be careful signing anything without consulting their bankruptcy lawyer. If they are in a 7, they can proceed however they wish. If they are in a 13, they will need permission from the court before they sign or commit to taking any action.
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