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Contact the old nursing home and explain that you thought that your Father was supposed to get some money for a motorcycle that he was selling. However, the bank has informed him and you that there is NO money coming back. Thus you would like to set up a payment schedule and pay a certain amount (such as 30% or 40% of 1 months payment each time) until the debt is paid. Apologize that you misunderstood your Dad and that is why you bought the items instead of paying them. Then go the bank and set up a Automatic Payment Plan so that the payment to the first nursing home is sent on a specific date (the 15th of the month). ALWAYS check your Dad's checking account monthly to make sure that the Automatic Payment was sent by the bank.
I think MrsH is saying, she sold Dad's motorcycle but didn't get any money for it.
Apply for Medicaid for him asap. If approved they will pay his medical bills from 3months prior to his application.
Also, that is his bill not yours. Ignore the phone calls or just block the number they are calling you from.
Unless you signed a paper claiming responsibility for payment. Since his SS was enough to cover his portion of payment, I doubt this was the case.
I was thinking of MEDICAID and a situation that I knew of where a resident's daughter received the Medicaid checks and instead of paying the nursing home for her Mom's care, she spent the money on herself (for at least 5-7 months). So the resident was transferred to a facility that was lower price and not owned by a for-profit company. I think that the daughter was in trouble legally, but I can't tell you what happened to her.
You should always pay the nursing home first and then use whatever is left over for your father's other expenses. In this case, I think that the nursing home can come after you for the money because it was Social Security income. If the income had been from his retirement fund or another source of income, then most likely not. But by using the Social Security income to pay for non-nursing home items before you paid the nursing home, you basically committed "fraud".
Why was your Father transferred to a different skilled nursing home? Was it because you did not give your Father's Social Security income directly to the first nursing home?
What sources of income does your Father have to pay for the nursing home besides Social Security? Is he a Veteran? If so, he might qualify for some VA funds. Has he applied for Medicaid?