Chapter 7 advice

[Helpmejab]

I am in Texas and need some help. My wife and I had a lot of credit card and personal loan and medical debt sent to collections. My wife was in an accident in 2014 and we received a settlement but like idiots have managed to spend much of that money before paying the medical bills, very bad I know. If we filled chapter 7 would it cover the personal debt and the medical bills as well, even with the settlement? We are trying to save up to negotiate with the medical bills but have a mess of other debt as well.

 

[latigo]

I am in Texas and need some help. My wife and I had a lot of credit card and personal loan and medical debt sent to collections. My wife was in an accident in 2014 and we received a settlement but like idiots have managed to spend much of that money before paying the medical bills, very bad I know. If we filled chapter 7 would it cover the personal debt and the medical bills as well, even with the settlement? We are trying to save up to negotiate with the medical bills but have a mess of other debt as well.

The key issue here is of course whether those medical bills incurred in the course of treating the wife for injuries sustained in the accident are dischargeable in a Chapter 7. Which may very well depend on whether the provider perfected a lien against the settlement.

But this is not the place to resolve the question. What you need to do is to consult with an attorney in your state specializing in the practice of bankruptcy law and is familiar with how liens under Chapter 55 of the Texas Property Code and the peculiar circumstances you describe * are treated in bankruptcy.

Most attorneys in the field of bankruptcy will offer an initial consultation without charge, so call around.


[*] "Peculiar" because it seems odd that whomever funded the settlement did not first take into account these outstanding charges.