Chosen by Asker

This is a tricky situation: Normally, filing Chapter 7 Bk would be the route to go....In your situation, you both have chronic health problems and no medical insurance coverage. You should probably reserve filing for Chapter 7 should you need this down the road if you have a medical emergency with huge medical bills....My concern is that if you file for Chapter 7 and have a medical emergency a few months later, you could end up with a large amount a new debt that you'd be stuck paying for. (Once you file for Chapter 7 you can't file again for 8 more years. You can't file every time you get into financial trouble.) One week in the hospital could easily be $30K. The good news is that if you are both out of work, then you are "judgement proof," meaning that even if they took you to court and won a judgement, then it wouldn't really help them as non-existent wages cannot be garnished. If you own a home, then they could place a lien on your property. A lien is only good if you voluntary sell your home. They can't force you to sell your property. If they take you to court, it is critical that you show up at the appointed/date with complete documentation of your income, living expenses and letters from your physicians outlining your medical problems. You can use these to negotiate a workable repayment plan. - Be super careful with dealing with debt collectors or any attorneys they might hire...they are full of dirty tricks. Don't accept any settlement deal that's offered over the phone unless the terms are back up in writing. NEVER, EVER trust any “advise” they give you, regardless of how “nice” they might seem on the phone. Remember, the are 100% against you best interests. Accepting advise from them on what to do is like Tweety Bird accepting advise from Sylvester the Cat. Also, do not fill out any questionnaires or paperwork requesting personal information for you to sign and mail back to them. ------------------------------- If this becomes a confirmed legal threat, then here is my complete answer for how to deal with being sued for credit card debt: answers ...

by CatDad

1 month ago

Asker's Rating: 

Well, you either file bankruptcy or you let them take you to court. It won't do any good to call and explain your situation... you owe them money and they want it. Besides, they've had plenty of people give them every possible excuse and even more filing bankruptcy and not paying anything. Sorry, but there's nothing you can do except pay or deal with the consequences. I'm sorry for your medical troubles... that's difficult when there's no money coming in.

by spalmer- 1 month ago

Neither of the two options will do any good. Any lawyer or debt collection company that reduces or forgives debts due to hardship is already out of business. The courts won't care either. You legally owe the debt and nothing in the law says you get any leniency because of hardship. Any judge that would have mercy on you (despite the fact that the law allows no mercy) has already been kicked off the bench. Sorry to be harsh, but the only way out is to: 1. Find a way to get some income, then work your way out of the debt through payments and settlements 2. Declare bankruptcy (and lose anything you have invested or saved) 3. Live the rest of your life on disability payments that cannot be garnished, never own a bank account or anything of value ever again (assuming you qualify for disability). Seriously, your problem isn't the debt, your problem is your lack of income. If you or your wife can get a job, then you'll have an income and you can start making settlement offers to try to clean up this mess. Even if you declare bankruptcy and wipe out all the debt, you'll still have a financial crisis on your hands until you can get some income.

by SmartA$$- 1 month ago

Just show up dear. I'm sorry this is happening to you but you need to get a grip on reality and start making some money. Good luck!

by L N- 1 month ago