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medical bills

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inAbind7

Junior Member
What is the name of your state?PA-

I don't have bad credit or a large amount of credit card debt. I do have student loans, which I have always paid on time. My problem is that last year I had a break in my health coverage. During that time I had the misfortune of being in a serious accident that caused me to be hospitalized for over a week. The medical bills are incredible! My question is, if I file for chapter 7 and only ask that the medical bills be expunged will that have less of a negative impact on my credit or should I attempt to have my school private loans and my credit card debt ($700.00) removed as well?
 


Debt Guy

Senior Member
My understanding is that you don't have a choice. All dischargable debts must be listed in your bankruptcy. You can't pick and choose.
 

inAbind7

Junior Member
one more question

How do I know if I qualify for bankruptcy? I'm concerned that my income ($45,000) and low amount of credit card debt, despite having school loans ($60,000, most of which are government backed) and the medical bills (approx. $25,000); I won't qualify because I don't have a high amount of monthly expenses. Not to mention that I'm single without dependants. Do you think that chapter 7 is the way to go? If so, what are the odds the trustee will see it that way?
 

inAbind7

Junior Member
According to the calculator I have monthly expenses totaling 1,225.00, but my monthly pay is about $3700 gross. Will that be a problem? Should I add my monthly government backed school loans since those can't be expunged? That would be another $300 added to my expenses making the disparity between my income and expenses around $2000.
 

wayne-o

Member
pojo is correct, most likely your school loans will not be discharged. I would also think with that much money left over, you would have a hard time qualifying for a chapter 7.
 

bigun

Senior Member
You have far to much disposable income to get a Chapter 7 discharged.
Have you not attempted to reach some sort of settlement with the healthcare provider? If you're able to save $2K a month, you should be able to come to some sort of accomodation.
 

inAbind7

Junior Member
I have. They'll reduce the amount if I pay least half in one lump sum, which I cannot due. The other option is to make monthly payments. However, it'll take me thirty years to pay $85,000. Not to mention I won't be able to save any money for my retirement leaving me in an even bigger mess.
 

bigun

Senior Member
Well, you're going to be paying the $60K in student loans regardless. You won't be able to bk them. These carry a very low interest rate. Don't stress these.
Concentrate on the medical debt. Is it still with the hospital? If so, what sort of monthly payment plan do they offer?
 

inAbind7

Junior Member
Unfortunatly they're not. To be honest the creditor has been much nicer than the hospital. I'm wondering if I should just ignore the bill, since the creditor informs me that they won't sue me out-of-state or file for bankruptcy?
 

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