Are you stuck in a difficult situation, trying to care for your aging parents while also raising your kids? If so, you are not alone. Many Floridians need help to balance their responsibilities, and debt is often a significant concern. If your parents are drowning in debt, you may wonder how to help them without risking your financial stability.
Debt and creditors in Florida
In Florida, creditors can only pursue you for your parents’ debts if you’ve co-signed on a loan or credit agreement. However, you can still play a crucial role in helping your parents navigate their debt and explore options like bankruptcy.
Bankruptcy options in Florida
If your parents are considering bankruptcy, suggest they talk to a bankruptcy attorney who can walk them through the entire process, explain their options and help them make the best decisions.
There are several bankruptcy options they can consider, each with its benefits and drawbacks:
- Chapter 7 bankruptcy: Chapter 7 bankruptcy or liquidating bankruptcy can help your parents by discharging most of their debts. In this type of bankruptcy, a trustee takes control of your parents’ assets and sells those not protected by law. However, Florida law allows certain exemptions, such as the homestead exemption, which can protect certain assets from creditors.
- Chapter 13 bankruptcy: People sometimes call this a wage-earner’s plan. It works well for people with a regular source of income who want to keep their properties. With this option, your parents can plan to pay their debts over time. It can usually take three to five years to do this. This way, they can hold on to what they own and fix their money problems.
- Debt management plans (DMPs): A DMP is a repayment plan created with the help of a credit counselor that can help your parents pay off their debts over time. While a DMP is not a bankruptcy filing, it can still provide a structured approach to debt repayment.
As a supportive family member, you can help your parents gather necessary documents, attend creditor meetings and provide emotional support during this challenging time. You can help your parents get a fresh start without risking your financial future.
