12-11-2012 07:30 PM - edited 12-11-2012 07:31 PM
Hey everyone I wanted to see if I could get some advice on my brother possibly filling for bankruptcy after some medical issues that have incurred some debt he cannot pay for right now.
So while in college my older brother was affected with a mental illness that left him with some hospital expenses that were not covered by his insurance. I'm not sure the number but it's enough that he cannot pay for them right now and his credit is shot.
He also incurred collections on a couple of credit cards while he wasn't being responsible which my parents have battled to pay back. He has since finished college and is struggling to find a job (so he has some student loans), but I know that in the future if he wants to ever purchase a home, new car, or attain a decent credit card he won't be able to because of his poor credit.
Now I do not know enough about bankruptcy, but I read through the FAQ on this board and it seems like Chapter 7 is his best bet when it comes to these debts, since he doesn't have any mortgage liens or auto liens that he needs to hold on to. I would like him to have a clean slate to start with.
My main question is will these medical expenses be gone, and in your opinion, is this the right option for him before deciding to see a lawyer about bankruptcy?
Thank you all for the help!
12-17-2012 01:42 PM
Bump in case someone might be able to help.
12-17-2012 06:42 PM
I will chime in for you but I am not a lawyer and YMMV as always. My first advice would be to get a free consultation with a BK attorney
I had a semi similar case. I used to be very good credit wise and a job that I thought would last forever. Unfortunatly the company was sold and all upper management was let go the next day. After losing my job and falling behind FAST because the debt I had was built on a six figure income. I got very stressed out to say the least and got three ulcers due to it. I was hospitalized for over a week while having tubes shoved in and out of all holes to take biopsies. I did not have insurance and there was NO way I was going to catch up at that point. I got notice a couple years later that they were going to take me to court for my debt. Being so young and wanting a house in the near future I decided to see a BK layer. I didnt want to be older when I finally decided to start over and get things in order. I wanted to take advantage of being young and having an edge on restarting fresh. I filed bk7 in July and was discharged in October. I am now well on my way to rebuilding and very relieved. I wouldnt change a single thing about my choices just to have this major weight lifted. As always YMMV and he may have other options. I just wanted to share experience rather then tell you what he should do.
12-18-2012 07:59 AM
I agree with speaking to a BK attorney. Typically they offer a free consultation and will easily be able to help you with your options. The medical debt will most likely be discharged and removed off his CR as if it never happened. It sucks because the hospital probably did a great job to get him back and healthy but Health Care Cost in this country is WAY TOO HIGH. But that is a different topic for a different forum.
We were in the process of filing when our son had respiratory issues and we took him to our pediatrician where we were advised to take him to the ER. The ER insisted that he be admitted. We followed orders and was later stuck with a $8900 hospital stay, and we had insurance. Unfortunately we had a $10,000 deductible and we were paying over $500/month in insurance premiums.
12-18-2012 09:01 PM
Really appreciate the feedback, I think I will attempt to get him to visit a BK lawyer, especially if it can be a free consultation. He is still young and I think that if possible this would be tremendous for him to have a fresh start. The medical bills here being the most signicant thing that will hopefully be written off. Of course like you mentioned Comet the work that doctors have done for him has been wonderful, yet the bulk of what wasn't covered under his school insurance was a brief stay in the emergency room, where unfortunately it was more of a hotel stay than any actual work done that racked up pretty ridiculous bills.
I'm eager to get going on this and hopefully he will listen to what I have to suggest. Thanks again!
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.