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jjshotgigi

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Bankruptcy for $7000 in medical bills, income $25,000, Should I file

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Consult with a bankruptcy attorney and pay attention to what they tell you in your first meeting. Remember, your credit score will be hurting for TEN years after filing bankruptcy.  You might considere searching for Dave Ramsey's site and learn his recommendation for getting bills paid.  Also, learn what the Statute of Limitations for Collections is, since it varies by state.

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Work out Settlement's

I filed bankruptcy twice years ago and it can improve your situation in the near future by not having to pay those bills but it will show on your account for up to 10 years. Once your credit is crushed it is a long way back to a good score. The amount I paid over the years in high interest loans just to have a decent car totalled in the thousands. Your insurance will be higher and the only positive is simply not having to paying the medical bills.

I recommend communicating with the people you owe before it goes to collections. Try to work out a payment plan that you can afford and pay it on time. If these accounts have already gone to collections it will be more difficult. You can dispute them or you can attempt to pay for delete but there is no guarantee of success.

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Debt Management Program

You may want to consider a debt consolidation program, a non-profit one, they are not that expensive. Look for one that is a .org, like Consumer Credit Counseling services. They can contact whomever you owe, negotiate down interest rates, and then set up a realistic payment plan based on your actual income. A perk is that if you are receiving collection calls right now, they will usually cease shortly after something like this is set up. Additionally, if you are not confident in your abiity to set up your own payment plans, it just gets done for you and you make one payment and they get disbursed. But BEFORE you do anything, get actual copies of all three of your credit reports to see what is actually on there, if some bills are pass stature of limitations, they may be set to fall off your credit soon.  You can get free copies of your credit reports at annualcreditreport.com. 

I've known a few people who have gone this route and most say it was the best thing they ever did and allowed them to reset and focus on getting their credit back on track. 

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