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kenek1

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I have a ton of medical debt and a prev. bankruptcy...is my credit hopeless?
I have a score in the 400s. I filed for chapter 7 bankruptcy about 7 years ago due to tons of medical debt that was in collections. I was only 21 years old and worked as a paralegal in a bankruptcy law office at the time and it's what my boss suggested. I only had one credit card of about $200. That's the only card I've ever had in my life. Since then I have gotten tons more medical debt. I had surgery done while I didn't have insurance, as well as hospital visits, etc. All of it is in collections, and there are so many accounts I have no idea what is what. I can't pay any of it, there is around 30k worth of medical debt. Seems no point in doing so, makes more sense to just wait for it to leave my report. But, here I am at 28 years old and I have never even had the opportunity to get a credit card, car loan, etc. I have NO debt except for all of this medical debt. How can I rebuild my credit? What can I do about all this medical debt? Is there a way to get it off my report? I don't even know if some of it is still there from before I filed for bankruptcy, mistakenly. Will I ever be able to get any credit given to me with a bankruptcy history? How can I get my score up from the 400s? Right now it just seems like I am never going to be able to own a car, a home, etc..

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YOU CAN DO THIS!

It may take a lot of work on your part, but you can fix this in time.  

You said that the Bankruptcy was about 7 years ago.  That and the related old accounts should fall off your report in due time.  It stays on your report for 7 years, it should be deleted around the aniversary date.  

To start, get a copy of ONE credit report.  You can get a free copy of each report once a year at annualcreditreport . com.  I suggest that you get only 1 report at a time, every 4 months so that you can check your progress. 

Start by writing a "Validation letter" to each Collection agency that is showing an outstanding balance.  Google it for a template and more info on how they work.  A properly written validation letter can be your best tool in cleaning up your credit.  It requires the collection agency to provide you with the required documents that they legally need to proceed with colections. More often than not, they don't have them and the law requires them to remove the account if they don't have them. This action alone could make most of the accounts in collections go away.  This doesn't work with "Original Creditors", But but many of those pesky third party collection agencies Just might go away.  

For those that you have left to deal with, set up a savings plan. Save enough money so that you can start attacking the bills that are left, one at a time. There are options to dealing with these to.  Read up on "Offer and compromise" and Setting up payment plans.  O&C, where you offer to pay a lump sum if they will write off the balance often works well.  Always try to get them to "remove" the negitive accounts if you pay them as well.  That can be a big help in the over all scheme of things. 

It will take a bit of work on your part, But IT is YOUR credit.  If you want good credit you'll have to learn how to manage it. 

Good luck

Good luck 

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hopeless

I have been there. I feel sorry your going through it, but let me reassure you there IS light at the end of the tunnel.

I have had a divorce, bankrupcy, thousands of medical bills STILL outstanding and under 400 credit score in my early 20's. I just want to let you know what I did and about how long it took.

First, I simply just forgot about credit. I didn't apply for any and worked hard, apid cash for what I got and tried to get small simple personal loans through my bank for amount I knew I could pay off in a matter of months. I only did this to build up a NEW history. This went on for years until the bamkruptcy was off my record. Then my credit jumps into the low 600's. Paid off all the small loans at the bank, got credit cards with high interest rates. These are tricky because you MUST pay them off monthly. The interest rate was over 21% and not worth keeping. But it was my stepping stone. When I hit 700's They started dropping my rates and offering me increased limits. About 10-12 years out of that bankruptcy, I was in the mid 700's and climbing. Now I am 817 with a FICO score of 788.

The moral is, it will get better. Pay attention to what you spend, how you save, and in my humble advice, I would make yourself a reasonable monthly spending budget and most imprtantly, STICK TO THE BUDGET.

Good luck

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