cancel
Showing results for 
Search instead for 
Did you mean: 

Is extreme medical debt worth a BK?

Frequent Contributor

Re: Is extreme medical debt worth a BK?

I would see if you can apply for charity write offs with the places you have medical bills with. Some will work with you if they haven't already sent the account to collections. If a collection agency picks it up and figures out where you're working or banking they will sue you and get a judgment and then garnish you which will put you in a worse position. I would just file BK and get it over with if you can get them to write it off as a charity for tax expenses. Honestly, a BK isn't the worst thing in the world. You will reocver and most people will understand if you are able to talk with them about why etc..

Ch7 BK filed 7/5/16, DC 10/12/16
Message 11 of 18
Frequent Contributor

Re: Is extreme medical debt worth a BK?

The BK laws are written for situations such as this- so someone in a bad position can get a fresh start .

 

Unless the OP has a lot of assets or can earn a large income like a rock start or pro athlete, i dont think they would even try to collect on a debt this large. They are probably waiting to get the BK papers..

Message 12 of 18
Frequent Contributor

Re: Is extreme medical debt worth a BK?

Medical was my reason. CH13 was a great decision for us.



8/2017 - EQ 686 // TU 670 // EX 676
3/2016 - EQ 615 // TU 605 // EX 621
Message 13 of 18
Frequent Contributor

Re: Is extreme medical debt worth a BK?

Retched...good to hear....hope you are getting better.

Message 14 of 18
Highlighted
New Member

Re: Is extreme medical debt worth a BK?

Thank you everyone for the well wishes.

I'm happy to say I'm almost fully recovered - just some PT needed and i'll be good as new.

 

The more I think about it, the more the BK sounds like it makes sense.

I've tried to apply for financial assistance and they keep finding reasons to deny me, mainly being when I did my taxes that year I did not get back a 1040 from my accountant and they've latched onto that reason to deny me.

 

Some of the smaller accounts have started going to collections and popping up on my credit, letters are starting to come in the mail, and i've actually received mail from a debt collector for the entire $4.76mill balance ironically enough.

 

Whats the means test? Ive read a little about it but I still dont truly understand it.

 

Should I consult an attorney at this point? I have a credit one credit card and an express card that are almost maxed out and I just applied for a secured Discover IT card...should I close those?

 

I also have a car financed thru Santander at 24% that i'm about 8k upside down in. I would WANT to include it on my BK but my sister co-signed and I dont want to damage her credit in the process...what can be done on that end? If they took the car, they'd do me a favor I absolutely hate the stupid thing I dont even drive it anymore, my dad does and he bought me a new car in his name that I drive instead.

Message 15 of 18
Community Leader
Valued Contributor

Re: Is extreme medical debt worth a BK?


bortiz1526 wrote:

Thank you everyone for the well wishes.

I'm happy to say I'm almost fully recovered - just some PT needed and i'll be good as new.

 

The more I think about it, the more the BK sounds like it makes sense.

I've tried to apply for financial assistance and they keep finding reasons to deny me, mainly being when I did my taxes that year I did not get back a 1040 from my accountant and they've latched onto that reason to deny me.

 

Some of the smaller accounts have started going to collections and popping up on my credit, letters are starting to come in the mail, and i've actually received mail from a debt collector for the entire $4.76mill balance ironically enough.

 

Whats the means test? Ive read a little about it but I still dont truly understand it.

 

Should I consult an attorney at this point? I have a credit one credit card and an express card that are almost maxed out and I just applied for a secured Discover IT card...should I close those?

 

I also have a car financed thru Santander at 24% that i'm about 8k upside down in. I would WANT to include it on my BK but my sister co-signed and I dont want to damage her credit in the process...what can be done on that end? If they took the car, they'd do me a favor I absolutely hate the stupid thing I dont even drive it anymore, my dad does and he bought me a new car in his name that I drive instead.


I'll address you questions I highlighted in red:

 

- A means test considers your income & assets to see if you qualify for a Chapter 7 BK, discharging all debt that can be discharged (taxes & most stundent loans can't be discharged). If you have too much income you may qualify only for Chapter 13, a repayment plan, which you don't want with $4.7 million in medical debt.

 

- Yes, consult an attorney ASAP. They can explain the means test and see if you qualify for Ch. 7.

 

- That Santander upside down car loan is going to be a problem. If you include the loan in BK and get it discharged they will repo the car. Repo'd cars are sold at auction, usually bringing a much lower price than if you sold it or traded it in. Because your sister co-signed they can & will come after her for the "deficiency", the loan balance minus what they sold it for. Possible option: Since your dad is driving it any chance he would be willing to keep making the payments? I'm pretty sure Santander will let you included the loan in BK, but as long as they payments are continued paid on time they won't repo the car, your attorney can check with them.


Fico 08: 720/721/719 TU/EX/EQ
Message 16 of 18
New Member

Re: Is extreme medical debt worth a BK?

I'll see if I can meet with an attorney the next time I get a day off during the week.

 

My dad is willing to keep paying the same amount, but not for the car because of how much is being thrown away in that loan. I know Toyota has their "conquest" program...could I possibly trade the car for something in my name only and THEN file the BK?

Message 17 of 18
New Member

Re: Is extreme medical debt worth a BK?

**UPDATE**

 

I just had my consultation with my attorney.

He said my case is pretty cut and dry and that I do qualify for Chapter 7.

 

I can keep my car, but I will have to surrender my current cards.

How do Credit One, Comenity, BofA, and Discover act like when they get IIB?

Discover is at a $0 balance, I haven't even used it...should I just cancel and get my deposit back?

Message 18 of 18