Hospitals, credit card companies can take your home

[bronxiteforever]

Interesting article about the problem and state responses to the hideous Federal Bankruptcy Bill of 2005

Michael Myers
june
2008

The caller is 73; his wife 71. They reside in a rural community, population 890. They own their home outright, having paid off its mortgage 15 years ago. The house has an estimated fair market value of $95,000. Their income is limited to $2,600 per month in Social Security paymentsn$1,950 on his record, $650 on hers.

Two years ago he sustained a stroke, was hospitalized for nearly three months and underwent six months of rehabilitation. When the medical expense dust settled he owed $27,000 in deductibles, copayments and uncovered costs to various healthcare providers.

They live in South Dakota, which historically along with Texas and Florida had an unlimited homestead exemption, which meant unsecured creditors could not levy or attach a debtor’s home. Then the loan-shark industry lobbied congress into tightening the bankruptcy escape hatch, capping homestead exemptions at $125,000, irrespective of state law.

South Dakota responded by lowering its exemption from an unlimited amount to $30,000; however, for homeowners 70 and older, the exemption is $170,000. Nearby Minnesota bucked the trend toward decreasing home protection. It established a reasonable $200,000 exemption for urban residential property and $500,000 for rural property.The “Great Society” has become the “Ownership Society.” Your preference?

http://www.siouxlandactiveseniors.com/articles/2008/05/29/story/08/june/09-052908.txt

[DCKit]

1. Good on the people of MN.

However, the fact that this couple owes ANYTHING for medical care is the real issue.

[bronxiteforever]

2. Exactly!

[roguevalley]

3. that credit card bill that allows slash and burn tactics was Joe Biden's

baby. thanks, Joe.

[fed-up]

4. k/r nt