@Anonymous 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.
