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BK question

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rootpooty
Valued Contributor
‎04-15-2012 09:54 PM
‎04-15-2012 09:54 PM

BK question

I am posting this for my girl friend. she currently has aprox 10,000 in collections 95% is all medical. she was in a car accident about 5 years ago and had no health coverage. however the lawsuit which she has is being finalized this summer. all the medical bills are in the lawsuit but the quetion we are wondering about is if the lawsuit falls through and the medical bills cant get paid would the next action be BK?

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On the prowl for Chase Sapphire Preferred! APPROVED 12K!
scores 7/14 647 622 630 (85%util)
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SoulMaster
Established Contributor
‎04-16-2012 12:02 PM
‎04-16-2012 12:02 PM

Re: BK question

No.

 

The settlement amount on $10,000 of medical debt would be about $2000.  The fees for a BK would be ~$1500.  So would you file BK on $500 worth of debt?  The answer is a resounding no.  For more information on why NOT to file BK, see this post of mine from a while ago:

 

http://ficoforums.myfico.com/t5/Bankruptcy/Bankruptcy-amp-Credit-Scores/m-p/1259627#M8730

 

Good luck,

 

-SM

I am not an attorney and none of what I write should be construed as legal advice. For legal advice please consult an attorney.
Starting Score: ~470 preBK(8/2010)
Current Scores as of Late January 2016 All 700+. Last CR pull from a lender(housing) was mid-score 749.
Goal Score: 700+ - reached.
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