I have alot of medical debt, I want to file bankruptch but need to buy a new car. What should I do?

Question

I live in Monroe, NC.

Answer 1

Don't file bankruptcy due to medical debt. Medical debt is not like other debt - as long as you are paying SOMETHING each month (and never skip a payment), you will not go into default. True, you may be paying the debt off for a long, long time but you will end up much worse in the long run with a bankruptcy on your record.

Answer 2

1st of all you don't NEED a new car. There are plenty of late model cars for sale for a lot less than a new one. New ones lose 20-30% of there value quickly after you drive them off the lot.
If you think you can afford the payments on a NEW car then you need to up the payments on the medical debts 1st.
Bankruptcy is not easy. Be honest and pay what you can on these meds each month. As long as you make payments I don't believe there is much they can do to you except harass you once in a while. Let them cry. I payed on my 1st kid for 14 yrs. Make the payments. That's what a court is going to look at anyway. If you are faithful every month, don't worry about it.
You can buy a car that's 6 months to 1 year old for a lot less than a new one and still have the remaining warranty, and LOWER PAYMENTS and a SHORTER LOAN TERM than a new one.
All a court would do is find out your ability to repay a bill and then order an amount based on your monthly expenses. So if you can pay a debtor say $50 a month, GET IT IN WRITING, and do so every month. This protects you and them. Give it a try. Been there and already done that. It worked for me.

Answer 3

You can buy a good use car that is about 4 to 5 years old. As far as the medical debt you may be able to work out something with the hospital so that you can get the debt reduced based on your income. Depending on how old the debt is they may write it off their books knowing they can not collect.
Also, you may be able to talk with a lawyer through a state or non-profit agency at no cost to you as to what is the best thing to do.
Good luck.

Answer 4

Generally speaking, medical debt can be agressively negotiated.

Offer everyone you own money to $25 a month, or whatever you can afford. (Most of them will take it.)

Don't declare bankruptcy if you can help it. This just has too many consequences beyond the new car...and it's with you nearly forever. If you have OTHER debt, aside from the medical bills, that might be a different story.

Answer 5

first of all, if you do file bankruptcy you most likely will not get a car loan anywhere, at least not for awhile. There are lenders who don't mind seeing medical bills on your credit report because it is so common. If it's really not too much money you owe in medical bills you might be able to get a car loan. You may have to pay a higher APR though.

Answer 6

If you don't have money to pay off your medical debt, you will shortly be in the same problem with your car.

Do not buy a new car. Keep the one you have. Medical bills are very easy to pay off. If you owe $10,000 to one place and $20,000 to another, divide it like this. Say you have $100 to pay off the bills. Send $75 to the smaller amount and $25 to the larger amount. Keep going. Always send something every month.

If you can't afford to pay your medical bills this way, you can NOT afford a new car. Pay your debt.

Answer 7

Buy your car first you may pay a higher apr.but if you make payments on time that will build your credit up ...Next when you file Bankruptcy do not include the car as part of the bankruptcy .

Answer 8

if it that bad you can alway buy the car first and after you buy it file bankrupttch because in most state the law will let you have one car to get to and from work

Answer 9

Buy the car first! Then file for bankruptcy. Just don't go crazy on how much the car is. If it's your only car, the bankruptcy court cannot take it away.

Answer 10

buy the car first.. wait about a month than go file. you will have the option to keep your car,,if you can pay for it