| Author | Message | ||
     Preybird1 |
Anyone had to do a bankruptcy? What chapter? I was recently in the hospital without medical insurance and got some huge bills and i was looking for some advice. I have looked into a medical bill negotiator company but i would have to pay 2\3 or all of the negotiated discount when it is done and i don't have that kind of money. I have an appointment to talk to a lawyer about bankruptcy on Thursday. I was going to buy a house but i don't qualify for another year and if i do a bankruptcy that might stop that plan all together. I have total bills of $40,000.00 and i was possibly going to file a chapter 13 a structured pay back bankruptcy. I am not trying to ditch out on the bills and i can pay half of it but not all of it. Otherwise i am going to sell my bikes to my brother and have him sign the titles back to me but not re-title them until bankruptcy is finalized and file a chapter 7 and discharge all of the debt, But this will hurt my credit for the next 7 yrs. I have only had credit for 1.5 years as before this i bought everything in cash for the last 12 yrs and never needed credit. Now i have truck loan and would like to keep paying on it and keep the truck. But there is no way in HELL im going to let some court trustee sell of my bikes to help pay back as much of the debt as possible. I would like to take care of this responsibly and pay as much as i can to protect my credit.....if not i could careless about credit i never needed it before and i will be damned if they get any of my assets!!! | ||
| Strokizator |
$40K isn't insurmountable. If you are contemplating filing BK it is illegal to hide assets (doing the bike title swap with your brother). If you're serious about taking care of this responsibly then you gotta do what you gotta do. It may be tough but in the end you'll still be able look at yourself in the mirror. Talk directly to the hospital. Go in there with a plan and see what they say. A third party "bill negotiator" doesn't give a crap about either of you. Too bad you're not an illegal alien (err, I mean undocumented democrat). Then everything is free. http://tinyurl.com/75u6mw6 (Message edited by strokizator on January 31, 2012) | ||
| Faseljd |
I did a Chapter 7 in Illinois. If you sell the bikes to your bro then you will have to wait a while before you can file as they have stipulations about such things. Every state is different. You can probably forget about home ownership for awhile. I was able to keep my truck w/payments going. I was offered credit cards before and after filing. A divorce and child custody issues wiped me out so I filed and got rid of approx. 55k of debt, mostly lawyer fees that were put on credit cards. Cost a total of $1500 for the Chapter 7. My credit may suck for awhile, but I got rid of the debt,the old bitch ex-wife, now have 3 motorcycles, 1 dune buggy (paid cash)and also found a hot new girlfriend who loves to ride. Life is GREAT!!! | ||
| Satori |
Either way is going to hurt your credit, and it stays on 10 years not 7. Tell the lawer your idea of the bike titling. Generally the court does not look to favorably at assets being disposed of right before a filing. Generally a chapter 13 banko you can get a home loan in 2 years,after its discharged providing youve re-established credit and are current , no collections judgements after its discharged. that means having a credit card, car payments etc. and you will pay higher interest rates. It can also stop you from getting any car loans etc for quite some time. That said, I would try and set up a payment plan with them, before it goes to collections, and negotiate your self to lower the bill. go for half. If you can show a payment plan, and your bills are 45% or less -sometimes as much as 50% including the house payment, you could still qualify for a home loan. With FHA. and that only requires 3.5% down, and that can be a gift. | ||
| Moxnix |
In these times of people walking away from home mortgages left and right, we'll find ourselves in a period where the stigma of bankruptcy is not so harsh. As housing prices drop another 20 percent before a recovery begins, there will be many more in this situation. We cannot banko out of school loans or taxes owed, but can negotiate settlements. First, go to the medical bills, hosptals, etc., and explain your situation and that you have a truck payment to get to your job. Ask what the least amount they will take before you banko out. And tell them you'll have to banko if something can't be worked out. Offer 10%, with payments. The worst they can do is say no, and then they have the choice to get nothing if you banko out. Be creative. Offer them the bike you like least. No frauds. People aren't giving loans anyway, and the loaners created much of the problem. Good luck. | ||
| Satori |
By the way, two things, I walked out of the hospital 2 years ago with a 30k bill, even w/ insurance. It took persistance, because of dealing with different doc's and all, but I did get it negotiated down, each was different. I'm down to 4k now. Sucks I could have had a nice fleet of Buells with that. And as for the mortgage advise, its what I do,and have dealt w/ situations just like yours recently. I would agree with strokizator, I wouldnt do it myself. | ||
| 86129squids |
Yeesh- I've no health insurance either, just got back in from a rather mellow ride- must admit I'd thought once or twice about the consequences of a crash... Good thread- and good luck Prey- examine all the best advice you can find, then do the best you can. If you do have to file, it aint fun, but it's not the end of the world either. | ||
| Blake |
Sounds less like you cannot pay, more like you just don't want to pay. Pay what you owe anyway you have to. Be responsible. It is not the hospital's duty to help you keep your toys or your truck. Man up. Anything less is totally lame. | ||
| Doerman |
Bankruptcy is protection. It is should only be used as such if creditors are threatening to shut down your life. If you only have one issue (the hospital bill), then you do not need the protection BK can give you. Go negotiate discount and payment terms with the hospital. Propose terms that you can live with and let the hospital know that you will seek BK protection unless you and the creditor can agree on terms that works for you. If your credit rating allows, then it might make sense to get a personal line of credit in a bank to pay of the medical bill as a lump sum. The hospital might accept a lower lump sum payment that a payment over time. | ||
| Preybird1 |
I know its illegal to hide assets but they can only look back a month if you have sold anything. And as long as im not on paper owning them than they can do nothing about it. And they can't garnish my wages as i control payroll at the shop and i can pay myself however i damn well please and they won't get a dime. I really think Americas health care is a joke and way over priced. I have a break down of the charges from the hospital and they were charging $250.00 for 8 plates of the nastiest food i have ever eaten in my life, for 2 days of being in the ICU! And $5.00 for each aspirin?? I have had better food from the military and once in jail. I never had credit before and i don't need it. In fact i don't need the truck i bought with it. I like the truck but i will live without it if i have to. | ||
| Oldog |
Prey Pm CitySlicker he may have a take on this as he works meds and hospitals, I had insurance and had a procedure done recently they wanted pay up front I no diced it but paid the bill when it came, and got a discount, I bet they will talk to you Undocumented republicrats LOL~! | ||
| Whatever |
Bankruptcy laws are changing all the time. If your attorney has not told you this yet, you will need proof of income and proof of every debt you are liable for. Anyone who gives you advice on here I would take with a grain of salt. Also, you will need all your paperwork for any loans you are liable for, such as school loans, vehicle loans and any previous medical loans. If your credit is fair I would ask him to check into a structured bill repayal plan. You may be able to consolidate the loan. DO NOT TAKE THE ADVICE OF ANY COMPANY YOU FOUND ON-LINE. They are set up to make a commission depending on what you sign. The attorney can help you also with letters to creditors regarding the limits you would like to place on them on how they contact you. You do not have to talk to ANY CREDITOR by phone and endure their harassment. Just my advice. If you do not like the options laid out by your attorney get a second opinion. All bankruptcy attorneys should give you a free consultation as part of their own marketing plan. There are also Consumer Credit Counseling agencies in most major cities that can help you make some decisions. I think they are called something else now. Contact your local Department of Health and Human Services to find out which ones are legitimate and not blood sucking leaches. Good luck! (Message edited by Whatever on January 31, 2012) | ||
| Blake |
Do you live according to a budget? Seek Dave Ramsey's financial counsel and follow it. His advice is EXCELLENT! | ||
| Britchri10 |
Contact the hospital/Doctors offices involved & negotiate a payment plan. Their initial claims against anyone are always draconian (it is their job to collect for monies owed) Explain your situation & offer to make payments over time. Be firm with them re: what you can & cannot afford as a repayment. Most hospitals/medical services providers will work with you. (Especially if you are threatening Chapter 7) 'cause they want to collect something. BTW & FWIW: I work for a hospital! (but not in collections) Good luck. Chris C | ||
| Guell |
Anyone who gives you advice on here I would take with a grain of salt and what makes you any different? Sounds less like you cannot pay, more like you just don't want to pay. Pay what you owe anyway you have to. Be responsible. It is not the hospital's duty to help you keep your toys or your truck. Man up. Anything less is totally lame. Amen, if you have 3 bikes and wont sell them to pay on a debt you owe, then thats pretty lame | ||
| Whatever |
Including me. The advice is to not take advice from anyone who does not have a full picture of your financial condition. Which I think is good advice.  | ||
| Oldog |
Good Points Char.. I would take your advice.. +2 on Dave Ramsey.. | ||
| Preybird1 |
I wont sell the bikes because it took me years to get them and those are my favorite things in life. I would rather die or kill someone before i give them up so that is not an option........As for not wanting to pay the bill i don't but i will. That is why i started this thread for some advice. I don't make enough to pay this bill and the company i manage for doesn't offer health insurance. So the no insurance is partly my fault. And by selling the bikes to my brother is an attempt to keep them and pay the bill still. i really had no plans on bankrupting this bill but i only make $2000.00 a month after taxes and between rent, truck payment gas and lights and phone bill and food and truck gas it costs me $1800.00 a month so that leaves $200.00 for bill payments. So I CAN'T pay this bill! | ||
| Britchri10 |
Talk to them! The charges they are levying are the full rate charges for everything. No insurance co: pays anywhere near the amount they are asking for for the equivalent services etc'. I am sure that they will negotiate & they will let you pay over time.(& reduce the total amount owed) IDK what they will settle for but $50.00 a month. (c$1.50 a day) is more attractive to them than $0.00 (which is what they will get if you file Chapter 7) You lose nothing by asking. Give this a go and if it is not doable then go another route! Talk first & offer the minimum you can afford. Like Char said: This is just the internet. Take what I say as you will. I feel for you, though! Chris C | ||
| Badlionsfan |
Sorry dude but if you're making $24k a year having multiple bikes, even one bike for that matter is luxury that you can't afford. My monthly cost of living is about $400 more than yours, make triple what you do and still think I should sell one of the bikes. | ||
| Blake |
He said "after taxes." Re "favorite things in life": Your honor, integrity, and self respect are infinitely more valuable. You can get another bike way too easily. How long ago was your hospital stay? How much have they reduced their bill? | ||
| No_rice |
i had a couple hundered thousand dollars in medical bills after they rebuilt my face(yes i know they didnt make it look any better  ) and my left arm. as well as being out of work for a bit, which put me behind on every payment i had. cant remember what chapter i ended up filing, but i had no way out. i was making almost $20 an hour straight time and worked 80-90 hours a week plenty of weeks. we lived like i made that much too... a month or two off work put me so far behind youd never believe it. not even taking into account the medical bills. i was drowning, and doing so at a fast rate. as long as i was working, the payments were no problem, be short pay once though and i didnt leave enough cushion to recover. i sold off every paid for toy i had and didnt make a dent. the bank took back the truck and the blazer(we talked and they were relatively cool about it, had been doing business there since i was a kid and was the only time id had a problem...) filed on everything else except the house. should have done that too, ended up loosing it anyway... ive got plenty of toys now(on half the income), but i have very low monthly debt. i owe on the new house we bought last april, a bike, a new sectional for the new house(small interest free payments), and roofing supplies for the garage last summer(also small interest free payments). oh, then there is the 12 yr old daughter payment to the ex, at a higher rate then people i know with 2 or 3 kids on child support... in 6 more years im not going to know what to do with that extra money lol. (Message edited by no_rice on January 31, 2012) | ||
| Strokizator |
I wont sell the bikes because it took me years to get them and those are my favorite things in life. I would rather die or kill someone before i give them up so that is not an option... How old are you . . . 12 ? So I CAN'T pay this bill! You could if you wanted to. Man up! The hospital took care of you and you're complaining the food wasn't up to snuff and the aspirin costs too much. Yeah, I wouldn't pay them a dime either. | ||
| Mnrider |
Insurance companies don't pay the full amount and you shoudn't have to either. They can work with you on the amount you owe. | ||
| Ft_bstrd |
Medical debt is different than other debt. It is viewed differently by credit companies as well. I would work to try to come to some sort of settlement arrangement directly with the hospital. Chapter 7 completely erases your debt, but you can only shield a certain amount of property. Once it's completely discharged, the debt ceases to exist. It stays on your credit for 10 years. Chapter 13 is a structured repayment of your current debt over a 5 year period of time. Based upon your income, you will pay some portion of your current debt back. Many repay between 20-50%. At the end of 5 years, any unpaid debt is discharged. Certain debts are excluded including student loans. I don't believe healthcare debt is excluded. This stays on your credit for 7 years. I wouldn't consider buying a house until you are on the other side of this. Once you make a decision on the path you are going to pursue, I would HIGHLY suggest you buy a high deductible HSA plan. It covers you against catastrophic medical expenses. Then you'd be looking at a maximum $10,000 exposure instead of $40,000. It's dirt cheap. I'm buying one that covers my entire family with a $4,000 maximum out of pocket exposure and it's about $200/mo. | ||
| Hybridmomentspass |
I wont sell the bikes because it took me years to get them and those are my favorite things in life. I would rather die or kill someone before i give them up so that is not an option" really dude? Why even say something this ridiculous? You know damn well you wont kill anyone. And youd really rather DIE than not have a motorcycle? This thread is full of fail, but its all, pretty much, coming from one person. Sell your stuff, pay your bills, at least TRY to work this out legally (vs trying to scheme on the government to keep your motorcycles etc) | ||
| Froggy |
I am in the same boat. I am good as dead without a motobike. | ||
| Blake |
Get real. | ||
| Moxnix |
I'm not my motorcycles and my motorcycles are not me. | ||
| Ft_bstrd |
Wants vs. Needs. Some of you may remember, I was once the proud owner of Ulysses. I HATED to sell it, but I did it, because it was what was required in order to attempt to get my ship righted. Use bankruptcy as a last resort. |
