I am wondering if I should or should not file for bankruptsy. THe Michigan Law changed recently. I know that it will follow me for 7 years. I have over $10,000.00 in medical bills alone. I also owe over $4000.00 to other companies.
How do I go about filing?
What are the Long term drawbacks?
2007-11-01 13:41:56 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
That is not enough to ruin your credit over.
Call the companies and medical offices and make deals with them.
They want their money and will help you get a payment schedule you can live with.
2007-11-01 13:47:22 · answer #1 · answered by Tigger 7 · 0⤊ 0⤋
I love all these answers that assume you have the money to pay the debts...so just pay it!
True, $14,000 doesn't sound like a terrible lot of money...unless you are working a minimum wage job and have maybe $50 a month left over to pay towards these debts.
Medical emergencies are a major reason many people file bankruptcy. To pay off $10k in debt over 5 years will take over $150 a month...and that assumes those nice people will wave any interest payments over that time.
I don't have enough details to recommend bankruptcy for you....what other debts do you have, what property, and what sort of income are you living on now?
To file, contact a bankruptcy attorney. They will give you a one hour consultation to see if it's the right thing for you to do.
Long term? Well lets see...right now you can't pay these bills so they will go on your credit report. You credit will suck. If they sue you, your wages and bank account will be drained. It will be like this for the next several years.
Or, if you file BK, your credit will be hurt for several years. But at least you will have money to live on and you can rebuild your life again without being threatened by collection agents. Within 2-3 years (if you plan this right) you will begin to establish more credit, and get back on your feet.
Michigan has a couple of good non-profit credit counseling groups...you can contact them and get a free consultation also. But your plan to get out of this depends on the information you didn't supply....so good luck.
Ignore the preachers who discourage bankruptcy. Many times it's the only logical way to get out of medical debts.
2007-11-02 06:16:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Bankruptcy is Federal and yes, the law changed. You may not even qualify for bankruptcy.
You can probably negotiate payment plans on most of that medical debt. Some may even settle for about 60% if you are uninsured.
If you need help dealing with these debts, check Consumer Credit Counseling Services (CCCS). They are a non-profit offering free counseling. The can look at your finances and advise you how to proceed.
http://www.nfcc.org/
2007-11-01 14:39:15 · answer #3 · answered by bdancer222 7 · 1⤊ 0⤋
I would consider Googling Debt Counselling in your city or region. I'm sure there is free counselling available.
Also, in the front of the phonebook in my city are a lot of phone numbers for crisis lines and many social services. Check there to get free expert advice.
2007-11-01 13:56:36 · answer #4 · answered by hedlight 1 · 0⤊ 0⤋