Question


Lauren

Help with Debt.. credit.?

Okay, here is my situation. My son was diagnosed with autism in april of this year. We then had our formal application turned in for medacaid. We are still waiting for an approval or denial letter. Since then, the medical bills have racked up, therefore we have not been able to pay half of our debt. We were in a debt management program until we could not afford the monthly payment. We then spoke to a bankruptcy attorney and pay the entire fee to file chapter 7. After a month of not hearing from them, they told us we did not qualify for a chapter 7 and that a chapter 13 payment would be more than we could afford. So, we are at 60 days past due on all of our debt. My son is now not in therapy at all because we were putting our self in more debt weekly. I have spoken to all of our creditors and they keep talking about writing the debt off in the next few months. What does this mean for me or my family? Tax returns, lawsuits? here is what I owe. 6500 4000 2500 2000 2000 We have not made a payment in 60 days. I have tried to settle with them all but they keep telling me that it is not to that point yet. I need help. I honestly do not care about my credit at this point, I care about caring for my children and keeping my family together. Morally, I want to pay these people back. If you have advice on how to do so, please let me know. Worse case scenerio, I cannot pay them back and I will have to answer to God for that. I also want to make sure no one is going to garnish my husband's wages and that we do not get sued.

1 month ago - 4 answers

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Whether or not they can garnish your wages depends on your state. Federal Law says they can garnish up to 25% of your disposable income. However, if you live in Texas or are a head of household in Florida, they can't garnish your wages. In NY, they can garnish up to 10% of your gross income. Check this site for your state: www ... Only student loans can cause wage garnishment without a judgement. Anyone else will have to sue you. Law suits are just a form of collection in which a judge forces you to hand over your property and/or wages to the creditor. If you don't have much property (excluding exempt property), there really isn't much to gain by suing you. You won't get sued right away. The credit card company will sell your debt to a collections company, who will try to collect from you by scaring you. You may be able to negotiate a settlement with them. They usually won't sue unless you have cash in the bank or something easy like that to take. Usually, if they can't collect, they'll sell your debt to someone else at a discount. Whether or not the collection agency sues you depends on the cost/benefit relation of doing so. The smaller the debt, the less likely they'll sue you. After 4 years (check Statute of Limitations for your state), if they haven't sued you, they can't.

by Edaphos

1 month ago

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Other Answers

17500 debt in 6 months is diabolic. I would be angry against the system. Very much so. At this rate I don't see how you will be able to afford future cures for him. It sounds harsh but personally I would move to the UK. Find a job there. They speak English and your son would get free treatment without you ruining your life over it. If language was not a problem, there are better places than the UK where you can get free help, google is your friend. good luck.

by Maccherone Pazzo- 1 month ago

what can you do. If the hospitals forgive the debt then you will have to pay tax on the amount as a gift from the hospital. This is still a big help. If you have been paying in that much for medical, you may not have a big tax anyway. Credit card companies seldom forgive debt. They probably will not settle with you until you are better than 90 days past due. If they do settle be sure to get it in writing that the settlement will be considered payment in full. In the mean time get back in touch with the medicaid people and see where they are in the process and see what you can do to speed it up. It is a long process. As for bankruptcy, you will probably qualify soon enough if the bills keep stacking up. Just hang in there and take care of your kid. Try not to let this consume you. Be prepared to deal with debt collectors. Read the fair debt collection practices act to know how to deal with them and remember they lie for a living. Good luck.

by timothy p- 1 month ago

In your case i can't see why you didn't qualify for chapter 7. Try other bankruptcy attorneys if you already haven't done so. The only reason i could see you not qualifying is that your husband makes good money.

by I love the wwe divas- 4 weeks ago

First, I commend you on your morality and responsibility to want to pay back these creditors. It is true that there are 90 or 120 days of no/late payments before the creditors charges off your account. They then sell your debt to a collections agency, who in turn by the debt for pennies on the dollar. You have a couple of positives working for you here. #1. That you have spoken with all your creditors and tried to make an effort to settle with them. Hopefully you have kept records of those conversations or emails as proof, if needed. #2. Once your debt goes into collections, most debt collectors will offer a reduced settlement on what you owe. The only negative to a reduced settlement, here in the US at least, is that the unpaid balance may have to be claimed as income on your taxes for that year. It may be possible to negotiate with the company on that too, asking that they do not claim that balance as part of the settlement. I believe you should just focus on your family for right now and wait things out. If you are not receiving any letters or phone calls from creditors then I doubt you should worry about any lawsuit. Good luck and God bless

by amontef- 4 weeks ago