Senior living went bankrupt
My parents moved into a senior living facility in December 2022 with a 90% return of capital agreement. They paid ~$400K. Fast forward and the facilty has gone bankrupt and has been sold. The new owner is negating everyone’s contracts and offering them 14% of their capital returned. They are going to a rental only model. My mom has now passed, but my Dad will run out of money in 2-3 years under these new circumstances. I’ve reached out to a few lawyers for review of all the documents but does bankrupciy allow for that kind of highway robbery of a person’s life savngs?
Terry Says
Unfortunately, yes. Those promises were unsecured promises — not insured, like bank deposits. In fact, I refused to do a speech for one of these groups because I was so concerned about that aspect of it. I think what you want to do is pressure them to agree to a “lifetime rental” in WRITING in exchange for your parents’ deposit!!
You’ll never get the money back, but you might be able to squeeze them for this kind of exchange. Mention you contacted me. They — or the bankruptcy trustee — will deal with each family individually, so you might get “lucky” by going this route. But again, get any promise in writing!
Please write back and let me know what happens. I think I might need to contact a company like this and write a column.
