Massive Credit Card Debt, Partially disabled now, help!!

[team_audi]

First and foremost I had a chapter 7 bk that was done in April 2014. I have since built my credit up and have been slowly racking up my cards. I currently owe Capital One $60,000, Barclays 20,000, Discover 4,000, and lending club 24,000. One month ago I had a massive seizure and was diagnosed with a brain tumor. I have lost my job and can barely work 10-15 hours a week from my doctors note. I have all medical records. Now I currently have 0 assets other than a 16,000 car I bought on loan and the value is lower then it's worth. I am deathly afraid they are gonna bring a ****storm down upon me. Especially Capitol one. I live in Ramsey county, Minnesota. I have no idea if I should call the companies and explain my situation so it can be documented that I tried and didn't walk away blindly. I am pretty sure they are going to say sorry you owe us. I am currently on medical assistance and food stamps because of this situation. I think I am exempt from garnishment. I know I am jumping the gun, could be years before anything happened, but I want to know somewhat what to do? Or what's gonna happen? Any words of advice would be good. I am assuming I am gonna need an attorney at minimum.



I have also heard that because the large amounts they can possible file something to block me filing bk in 8 years from now? Is that possible? Would they do that?

[Anonymous]

I've been doing collections for 12 years, so this is what I know and can share.

If your income is just the few hours a week you work then a collector can issue a garn to your employer, but they won't get anything since you'll be below the exemption limit. If those funds are deposited into your bank account, they then however are free game. If a collection agency issues a garn against your bank then they can take 100% of whatever is in there at the time of issuence of the garn.

If you are able to get on SSI or Disability then 100% of those funds are exempt, if a garn was issued to your bank they wouldn't send them to the collection agency. However, if it's co-mingled funds, like you get SSI or Disability and you deposited a check that wasn't wages, or possibly payroll then all those funds could be taken.

You can call everyone and tell them that you can't pay them, but it really won't do anything. Cap one will just eventually charge off your account, sell it to a 3rd party collection agency who will just harass you, might sue you, but if you aren't working even if they get a judgment they can't realy do much about it. Personally if I were you I would stop paying your debts if you haven't already. I googled and it seems like in MN they have 6 years to collect your debt. That would be from the last payment you made. If you make any sort of a payment to the debt, it them re bumps up the last payment date, giving the collectors longer to collect from you.

If you haven't already, it might be worth seeing if the hospital or whomever you're going to for medical has any sort of assistance programs. They have to write off so much debt a year in "assistance" for tax purposes so it might be worth a shot.

I haven't heard of anything being filed to block you from BK again in a few years.

[lkcrew426]

I don't know anything about the credit card debt and collections process, but the non-profit hospitals here have a financial assistance program you can apply for and if your income is low enough, (which I'm sure yours is at this point) they will forgive a portion if not all of your hospital bill. Our hospital also had a medication assistance program where many medications can be obtained for $5 a month.