What happens to the rest of their bills if they go on Medicaid and all income goes to the NH or AL?

I recently got some info that a local assisted living that my husband’s family has experience with has a few Medicaid beds. It is a decent place. I’ve been in there many times with his grandmother. I spoke to my mother about this, and she was somewhat receptive, but not ready to do anything soon. She would have to get approved for Medicaid, and I believe all but $60 of her monthly income would go towards paying the facility. The problem is that she has credit card, debt, medical bills, etc. How do those get paid? It will take everything she has to maybe get two months’ worth of payments into the facility before hopefully Medicaid picks it up. I also fear putting her in there, using all of her resources, and then her Medicaid is rejected. Because she had community helper type Medicaid for a couple of years before I came on the scene, and failed to disclose her small amount of assets.

She does on her home outright, and has put it on a ladybird deed to me so it is supposed to be protected from Medicaid look back. I am completely fine with selling the home to pay for her care. The problem is that the home is hoarded, needs lots of repairs. We would not get much for it. It would buy maybe a year in assisted living? And then what. I’m still not convinced she’s going to get Medicaid if she applies.