Newly aquired medical bills, house paid off, don't want to file bankrupsy, should I refinance, see details?

Question

Prior to January, I had just house hold bills, and a couple credit cards I am paying off. Paid one off completely, with 2 to go. (lost job a while back and it snowballed into owing around 7 grand total, paid off one, 2 grand, 2 left).....have usual property tax, light bill, water, etc. (and my internet, which is my ONLY recreation/entertainment, no going out to movie/dinners etc.)
But have about 10K in new medical bills, due to a MISdiognosis on top of it.....The house and vehicles are paid for, vehicles aren't worth squat, but the property is enough to cover it all, but....
A. would a lender even consider refinancing, not behind on anything......
B. property is paid for, and so badly don't want a mortgage again...
C. if I don't, I am sure they can hound me till I have a nervous breakdown or smack a lein, or attempt to take my property for the medical bills.
D. home equity, if something happens and you can't pay, poof, they GET your property.
any suggestions?????

yes I am working, full time, so a second job, oh man, I don't have the stamina for. But thank you for all of your answers!!! ps Tennessee

Answer 1

Just make monthly payments on your medical bills. Most medical bills do not charge interest and most accept small monthly payments. DO NOT take out a loan to pay medical bills. If you get behind on medical bills they can't come and take anything away from you. If you refinance your house to pay your medical bills and you get behind, they can come and take your house. So, I repeat, DO NOT refinance your house or take out a loan to pay medical bills. Over the past 18 years that I've been married, I've very rarely had medical insurance. I always make monthly payments when I get a medical bill that I can't pay. When my oldest daughter was born, I paid $5.00 a month on the hospital bill until one day they called and said they needed at least $10.00 a month. Like I said, they don't charge interest so I didn't hurry and try to pay it off. I think she was around 13 when I got it paid off. I'm still making $10.00 a month payments to the orthopedist from where my other daughter broke her arm about 7 or 8 years ago, $10 a month to the hospital from where the same daughter had her tonsils removed about 5 years ago and $10.00 a month to the hospital from when my 8 year old son was born. I have never gotten any harrassing phone calls over medical bills as long as I send them something each month. So, my advice again is to make monthly payments on the medical bills and don't take out a loan to pay them off.

Answer 2

For a very similar situation a found a great solution at: FINANCE-SOLUTION.US RE House paid off. Newly aquired major medical bills. Is bankruptcy the only way to go now???? Recent medical emergency, resulting in a trip to the ER, before and after a trip to a Cardiac Hospital has shifted my husband and myself from being debt free in less than two years, to having now tens of thousands of dollars in medical bills that no way we can pay, we just don't make enough. Any advice in regards to filing bankruptcy, can they make us sell our home and become homeless. (live rural, so value isn't like Florida or something, most we could get is between 15-22 thousand for the property. Any advice would be so greatly appreciated.....

Answer 3

you didn't tell us where you are, so we can't tailor our responses to your local laws.

If you're in America, it is very likely that the medical bills are all inflated far beyond what an insurance company would pay for the same procedures. Therefore, (if in America), I recommend bargaining with the providers ... your offer is that you'll borrow the money against the house and pay within weeks if they'll reduce the bill to the average of what insurance companies would pay [or what the largest would pay].

If in America and you do nothing, the medical people can and will file a lien for the full amounts against your house. Depending on state laws, they maybe can or can't force the sale of the house and such a lien lasts forever (and in some states accrues interest at 10% or even 16%).

You are now beyond the level of a casual advisor (such as myself) and need an attorney who specializes in your area and these types of cases (medical overcharges and billing).

***
You may also have a medical malpractice case against the physicians who misdiagnosed you ... this issue needs the attention of a well-qualified attorney in your area. It is possible that, should you have and file such a case, the majority of the medical bills will be paid or forgiven as part of the settlement.


GL

Answer 4

If your house is paid off then you can't refinance but only get a home equity loan or line of credit (loan is better at this time).

Yes, if you default on home equity loan they can repo your house because that's the collateral.

I do believe it you make payments in good faith on your medical bills each month they cant' put a lein on your home (you'd have to check with a lawyer on that one though). My sister owed huge amount for medical and she paid $25/month until it was paid off and there wasn't a darn thing the hospital could do to her. They did send nasty letters, but she kept on paying what she could until it was paid off.

If your medical bills were on account of a misdiagnosis you might be able to get the offending physician to pony up some of the money to pay for the bills.

Answer 5

I suggest you talk to the medical facility/doctor and work out a payment plan. It sounds like you are in ok shape with a paid for house and paid for vehicles. Are you working now? If so, then see if you can pick up extra hours or possibly get a second job. If you aren't working, get a job fast and then you will be ok. ALWAYS pay for utilities, food, housing (taxes, insurance) before you pay your debts. I am not saying skip out on your debt but you need to keep your necessities up.

So first, talk to medical facility/doctor and work out a payment plan. Second, read The Total Money Makeover by Ramsey to learn more about budgeting, emergency funds, getting out of debt and working with bill collectors.

Answer 6

Never ever refiance your home to pay for bills. Not worth it. You should put your house in jeopardy because of greedy companies that have more than enough money. Some suggestions
1Call the people you ow money to and ask them to be put on a payment plan.
2 Try to negotiate the amount of money that you do ow.
3 I f you have decent credit try applying for 0% ffinancing or one with a low interest rate.
4.Call the states attorney office and find out what the or in your state reguarding repayment.
5 Tell them that you want to apply for fincial hardship. Hospitals (especially tax-exempt) are supposed to have money set a side to help with bills if people are in need.

The number one reason people file for bankruptcy is because of medical bills. Don't worry about the people hounding you for money. Thats what they get paid to do. Please promise me you won't take money out of your home to pay these people. You will reget it. I have been through this myself. These people can be very aggressive and and give bad advice. The hospital that I owned money to checked my credit and saw I had credit cards with no balances on them and told me that should pay for it that way. I told them to drop dead. I'm paying high interest just so they can have their money faster.

Good luck

Answer 7

You need to check with a bankruptcy attorney in the area in which you currently live. The renovated bankruptcy laws of a few years ago changed a lot concerning your ability to file a bankruptcy action. With your debt free assets, you may not qualify for bankruptcy. Discover your options by speaking with an attorney, and then decide which course is best for you.

Answer 8

For all your mortgage questions

Try

http://www.platinumquestmortgage.com

or

http://www.mortgagerefinancingatlowrate.blogspot.com