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Question By
BSZ1975

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My Credit problems are all Medical. Should I just file Bankruptcy?
I have 9,000 dollars in Medical bills I am in the process of being sued now. Should I just file Bankruptcy? The first appearance has not even been completed and they have failed to serve me.

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Most health care businesses, especially hospitals, in order to maintain their tax except status, must provide financial hardship write offs and discounts to patients that cannot afford to pay for their care.  Also monies are sometime available under "Hill-Burtin" federal funding.  Check with the financial services department of the health care provider. Hope this helps.

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Helpful to 26 out of 33 people

If they're already suing you, bankruptcy is probably your ONLY option.  Your creditor is already past the point of trying to negotiate with you.

One warning for those who try to get a creditor to accept a lesser amount.  If your bill is $9k and your creditor tells you they'll accept $4.5k, just keep in mind that if you pay them the lower amount, you should be prepared to receive a 1099C form from them for the $4.5k they wrote off.  And that $4.5k must be reported on your tax return as "ordinary income."

Reply by
dartanyan1990

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Helpful to 2 out of 3 people

I had a $5,000.00 medical bill that I am being sued for. It's from two emergency room visits I had, both in a 6 month period when I was only 18. I applied for medicaid and was denied even though I only made $300 a paycheck because I had a roomate. I'm 22 now and pushing through nursing school and working full time to pay for tuition. Don't think that just because a debt is a small amount they won't take you to court. That's what I thought, and I was wrong!

Reply by
MegaDecaByte

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Helpful to 8 out of 14 people

Negotiate. I would think a derogatory court judgement if you are taken to court (unlikely for $9000)  would be less damaging to your credit report than a bankruptcy.  I'm almost at the end of my 10 years from my bankruptcy.  I advise avoiding it at all cost.  It changes your life.  If you don't have the money they aren't going to pursue you, it would cost them more than the debt. Now if it was $150,000 that might be another story.

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no BK

Helpful to 20 out of 23 people

I would not file if all you owe is 9,000. Find a way to get on a payment plan with them. The damage is too severe for such a small amount. 

Reply by
barney601

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Helpful to 12 out of 17 people

Enter Your Reply

right on.. filing to lose 7-10 years of your financial life can be crippling.   payment plan or settle .  in seven years you want to buy a car, new job etc..  cant with bad credit history

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Settle!

Helpful to 10 out of 11 people

You're in a good position to settle the debt for less than the amount owed.  If you can scrounge up $4500, offer to settle for 50%.  It is very likely they will accept.  Just make sure anything you agree to is put in writing. 

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bankrupty

Helpful to 9 out of 13 people

if you file bankruptcy know that you will get your credit rating back up topar if you take out a secure card and just keep using it and paying back in full every month BEFORE  the due date.  my daughter filed (early 20s) and i told her what to start doing immediately and estimated in 7-8 years she will be back on top again.  her ratings are in the 800s now .  consider your age, she was young

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Settle in writing!

Helpful to 1 out of 1 people

I agree with emak17 that you should settle with a payment plan or if you can, Pay the $4,500. But, as they said, get all agreements in writting. I had payed one for $0.10 on the dollar. They agreed, but them turned around and put the remaining balance on my credit, like I just made a payment! If you don't have it in writing, odds are, they will stick it to you!

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yes

if you dont own much it will help

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bankruptcy

always check with an attorney first.  I am not sure what your medical is but I dont think you need to worry so much about that even if you paid them $10/month you are making an effort.  But i think many medical services have free care also, yuo have to apply for it.  Medical would be the last reason I would file for bankruptcy, check with an attorney there are plenty that you can consult with for free.

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medcal bill debt vs bankruptcy

I know this is a late reply but a family member stated to me that if you make a payment of just $10/month , not sure they can do anything about it.  I'm not a lawyer but it's worth a try as it shows good intentions to pay.

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medical debt

I'm not sure of the exact figures but i would not file bankruptcy for medical debt!  i think if you pay $10/month and keep paying they cant do anything to you because you are making the effort.  so who cares? you are paying something in good failth right? i had an oil company threaten to take me to court and destroy my credit so we started paying them $10/month....and then added $20/month...no more threats.  Just think if they took that to court and what woud a judge say seeing that you are making payments?  most likely NOTHING!  youre trying and thats the best ne can do, is to try!  dont lose sleep over it!!  just make a tiny payment you can easily live witheach month 10-$15/month and move on.

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