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strongly considering chapter 7

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    strongly considering chapter 7

    all right i stumbled upon this forum and it seems like the only thing out there that isn't trying to sell me something. my wife and i are strongly considering filing chapter 7. im going to do my best to spell out our major debts and income.


    our combined yearly income is aprox 70k of which we actually see aprox 50k a year due to health insurance 401k union dues and taxes. my monthly income changes month to month being im in a seasonal sales type business i make awesome money in the spring and summer and very little in the fall winter.
    our monthly bills that we currently pay
    2 car payments aprox 700
    rent 650
    utilites 300
    insurance 120
    cable internet 150
    food 500
    entertainment 300
    gas 500
    cell phones 120
    student loans 200
    this is just a rough budget my wife is better with watching the finances than i am. heres why we are considering chapter 7 due to the relatively decent income for a small midwest town.

    medical bills roughly 1.2 million (i had a horrific car wreck about 4 years ago and didn't have health insurance 28 days in a coma and 4 surgeries and a helicopter ride add up quick) that amount is the lowered amount i was sent to a for profit hospital and the actual total was in excess of 4 million.
    credit cards aprox 8k
    judgements aprox 14k (this is due in part to some shady legal advice i got from a lawyer following my car accident)
    misc. stuff 10k (ie had a repo, broke an apartment lease, didn't complete cell phone contract)

    all this has left us with credit scores from the high 400's for me to the low 500's for her. im not seeing where we could honestly pay down over a million in medical bills in any amount of time and maintain any quality of life. the hospital doesn't bill 1.2 in one large bill they bill 30k for helicopter, 90k for this 18k for that and so on and so on its actually about 100 different "creditors" nailing my credit every month. the credit cards are very old in the 5-6 year old range and the judgements they aren't going anywhere ever. we are at the mind set that we can pay our bills comfortably with some left over but the hope of home ownership is just impossible with so much debt. and if we just file chapter 7 it will all be whiped clear and it would give us a head start on rebuilding our credit. we know chapter 13 is looked upon more favorably then chapter 7 but in my line of work i will bring home 1200 a week in the summer and in the winter am lucky to bring in 600. so theres alot of stashing cash in the summer so that we can eat in the winter. im honestly looking for some unbiased advice both of our families are of the mindset hindsite is 20/20 and i shouldn't had been speeding down a gravel road.

    #2
    How are you with all the other bills except for the medical ones? Before bankruptcy, I would try to negotiate the medical bills down to something that is doable. If they send the medical bills to collection, they are only going to get pennies on the dollar, so they may be motivated. If that doesn't work, you could always consider bankruptcy after trying that.

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      #3
      Normally I would not make hard and fast recommendations and just advise you to talk to a bankruptcy attorney about your options. In your case, you absolutely need to file. Don't wait. With the judgements against you things could get ugly and leave you in a really difficult position with no warning. You are not going to be able to reduce these bills to something manageable, and even if that were likely, the judgements are dangerous. Talk to an attorney yesterday. Don't wait for your bank accounts and/or paychecks to get garnished. Do whatever you have to do pay the filing fees. Trust me, you will feel nothing but relief when this is done.

      Comment


        #4
        Originally posted by hamchan View Post
        Normally I would not make hard and fast recommendations and just advise you to talk to a bankruptcy attorney about your options. In your case, you absolutely need to file. Don't wait. With the judgements against you things could get ugly and leave you in a really difficult position with no warning. You are not going to be able to reduce these bills to something manageable, and even if that were likely, the judgements are dangerous. Talk to an attorney yesterday. Don't wait for your bank accounts and/or paychecks to get garnished. Do whatever you have to do pay the filing fees. Trust me, you will feel nothing but relief when this is done.
        I'm going to lol at any idiot advising him to try to pay 1.8 million in debts. File bankruptcy, like yesterday. Do you really want to go through life trying to pay down a million dollars? Life is too short. I'd leave the country if I had to.

        Some thing are more important than having exemplary credit. File it asap.

        Comment


          #5
          In this case, your credit score may actually go up after you file bankruptcy.

          Comment


            #6
            Originally posted by terry1156 View Post
            How are you with all the other bills except for the medical ones? Before bankruptcy, I would try to negotiate the medical bills down to something that is doable. If they send the medical bills to collection, they are only going to get pennies on the dollar, so they may be motivated. If that doesn't work, you could always consider bankruptcy after trying that.
            To me it's insulting to even send a bill for a million dollars. Why not make it a billion? Might as well. There's simply no way a million dollar bill can be racked up in a month in real valuation, not even in the screwed up inflated world that is American health care. If you can negotation down a million dollar bill to say, a cup of coffee or a round of beer then by all means go for it.

            I wouldn't even attempt to pay these clowns. Go straight to bankruptcy.

            Comment


              #7
              Originally posted by tomhole View Post
              In this case, your credit score may actually go up after you file bankruptcy.
              That's very possible. In either case, if you play your cards right you can get it back into the 650-700 range within a couple of years.

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                #8
                Find a good attorney and file. You're not paying that back ever. I'd rather have a bankruptcy under my belt than to have my whole life virtually ruined trying to pay back a million dollar medical bill.
                Brian

                Comment


                  #9
                  One possible issue, they changed the bankruptcy law in 2005 so that if you're above the median income in your state that you cannot file chapter 7. You will probably have to file chapter 13, which means you will pay for a few years.

                  It will still be better than trying to pay a million dollar bill.

                  Edit: I searched online, your debt is likely too high for chapter 13. Chapter 7 requires a means test, I would assume you should be able to pass this with your huge liabilities. I would definitely talk to a lawyer,
                  Last edited by Weird Tolkienish Figure; 01-07-2015, 06:52 PM.

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