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ACArellano

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My collections are medical. Should I pay them off or file bankruptcy?
Right now I owe $830. (2 separate collections) with one agency.
$27,875 (10 separate collections) with another agency. All are from ER visits, ambulance, hospital stays, etc. Not sure exactly if it would be easier to slowly pay them off or file bankruptcy. Looking to buy a house in 2 years and right now I only make $2,000 a month. I have had a car loan for a year, and have made all those payments on time, so I wouldn't want to put the car in the bankruptcy if I have to go that way. Any advice?

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Top Contributor
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You likely will not be able to get a mortgage really soon because those collections won't drop off your credit for at least 7 years.  Some hospitals have financial assistance programs, some may discharge parts of debts on an income based sliding scale..you just have to ask.  And, you should know that a bankruptcy hurts your credit for 10 years.  How about working on getting the debts cleared up and developing a sound spending plan so you can get the maximum use out of your income?  There is nothing wrong with renting. I've been on both sides of that fence.

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