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Subjectangel87

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Would Bankruptcy help with severe medical debt?
I have 15 open collections all of which are medical debt totaling to about $20,000 and it's caused my score to drop to the low 500 range. Other than that I only have a college government loan that I don't start payments on until I graduate next year. Would Bankruptcy help me or make it worse?

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It would make things worse.  Your medical debts will fall off your credit report much quicker than a bankrupcty.  If left unpaid, the medical bills will fall off 7 & 1/2 years from the date they went delinquent (if you never made a payment, then 7 & 1/2 years from the date the bill was incurred).  Those lenders that use the latest FICO version #9 won't count medical debts as part of your score.  Try to tough it out and when your student loans become due, make sure you are in the best repayment plan available, perhaps income-based plan?  Check your lender's website for more info on repayment terms.

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Validation

Bankrupcy should always be a last resort. Check your states SOL on debt some states SOL is as low as 4 years for debts to drop off your report. rebuilding after bankrupcy can take much longer. Try sending debt validation letters to the ones that are with collection agencies, its a bit of a loophole. If they DO validate the medical debt it is in direct violation of HIPPA regulations and you can file against them for violating your rights under HIPPA. I have managed to delete several this way, they did not waste any time in responding it took 3 days and they sent me a email letting me know they had no choice but to delete the collections and they were gone as well of my CR.

Best of luck!

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