My parents have massive credit card, hospital, and nursing home debts from 2016 and 2017 that never got paid off. The cards are all cancelled, and they don't have enough remaining after rent and bills to even pay the minimums. They only have so much savings left but I'm holding onto it until I can get approved for the waiver program which will pay for in-home health. I don't have the time or the money right now to deal with a bankruptcy since I am finishing school and starting a new job. Should I just tell the people I owe that their money is being used for in-home health required for every day basic functions?? Without in-home health, they would be in a nursing home or dead, and obviously their life has more value than some paper bills. I don't care about inheriting any of their stuff, so if collections wants to take it all after they pass away, I don't care.
The priority for using money is : food, shelter, utilities so they don't get cut off, then other essential expenses. Non-essential bills should take the back burner until you have money to pay. And it sounds like you're spending money in that order already.
I know little about Medicaid, NH, etc. compared to other posters. Lets wait for them to chime in and give you some good advice.
Credit card debts are UNSECURED meaning if your parents can't pay, the credit card companies CAN NOT make them or take any of their possessions or put a lien on their home if they have one.
Credit card companies might have turned their account balances to their collection agencies or sold to outside collection agencies who will call incessantly to collect their money. These collection agencies are the worst of the worst, the bottom feeders IMO. They will threaten and lie to get any money from any one. DO NOT give them ANY bank information of your parents or you. They will go in and wipe the bank accounts clean.
After so many years (I forgot how many) of not collecting, the debt is considered 'forgiven' LEGALLY, meaning they can not go after your parents anymore. DO NOT CALL OR CONTACT them to CONFIRM the debt in anyway, shape or form because then the clock will reset.
For hospital and nursing home debts, call and explain to them your parents situation. Ask them to waive any interest and to accept whatever amount your parents can pay each month, be it $5 or $10. As long as payments are being made, they will know your parents are not deadbeats.
In some cases, the hospital or nursing home could sell your parents debts to a collection agency. For example, your parents owe the hospital $500, and haven't paid it since 2016. A collection agency approaches the hospital and gives the hospital $5 to buy the debt, so they can have the right to collect the $500 and take a chance of not collecting any. If this is the case, then the hospital has been PAID. The right to collect the debt now belongs the a bottom feeder. Then you must take the precautions I mention above.
Write a standard letter to all creditors explaining the situation. You write this letter from your parents' address and sign it per pro your parents. Include nothing that identifies you as a contact or could in any way imply that you accept any kind of liability.
If you don't have the time to deal with a bankruptcy, you're finishing school and starting a new job, and your parents' day to day care is provided by paid workers...
When did you become aware of their financial situation? How did you acquire responsibility for sorting it out? And could someone else perhaps be in a better position to deal with it for them?
Are you POA? Why can't they be in a Nursing Home and apply for Medicaid?
How is their housing being paid for? How certain are you that they will get the waiver? In some states, availability of waiver funds is very limited.