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would this be better than bankruptcy?

we are on a fixed one person income. and our house is paid for. we have about $30,000 in medical bills. would it be better to mortgage the house? we have never been in this situation before. if so does it give you all of what the house is worth or just what you need?

 
Anonymous

Asked by Anonymous at 10:07 PM on Aug. 17, 2009 in Money & Work

This question is closed.
Answers (7)
  • I wouldn't reccomend taking out a home equity loan...My husband had to take a 35,000 dollar equity loan against his house, and 2 years later, he couldn't sell the house b/c he owed more than it was worth. Now, we are in foreclosure. Bankruptcy probably isn't so bad. You might recover much sooner from that than you will from struggling over the next however many years paying back the medical bills. Good luck hon! I feel your pain!
    kenzie07

    Answer by kenzie07 at 5:20 PM on Aug. 18, 2009

  • I wouldn't recommend it. You can take out a Home Equity Line of Credit to get the 30,000; but then if you can't pay it back for whatever reason, you can lose your house. If you file bankruptcy, then you can keep your house.
    missanc

    Answer by missanc at 10:13 PM on Aug. 17, 2009

  • u can for the amount you need there is a set minimum however as previous poster said if you cannot for some reason ever pay that you risk the roof over your head
    mama2myAna

    Answer by mama2myAna at 10:19 PM on Aug. 17, 2009

  • It would be best to open your phone book and find a bankruptcy lawyer who doesn't charge for the first visit. Usually bankruptcy is your best bet, you'll keep your home, cars and such as long as you're still paying on them. Think of it this way, if you have bad credit now because of medical bills you will still be paying them off 30 years from now and still have bad credit. If you came bankruptcy you'll have better credit in 3 years. I've known many people who have gone the bankruptcy thing and they have all had better lives within 3 years. Don't believe anyone who tells you you'll lose your home or you'll have bad credit for years and years, talk to a lawyer.
    Works4Mom.com

    Answer by Works4Mom.com at 10:33 PM on Aug. 17, 2009

  • Do NOT do a bankruptcy!
    Anonymous

    Answer by Anonymous at 7:00 AM on Aug. 18, 2009

  • No, do not put your house up for medical bills! Instead you find a way to work with them to pay them off. You can settle for a lesser amount or just take them one at a time and pay on it until that one is gone, then move to the next one. Read the book The Total Money Makeover by Dave Ramsey. It talks about situations like this and how to handle it. Do NOT take out a home equity loan to pay them, you could lose your home.
    slw123

    Answer by slw123 at 8:25 AM on Aug. 18, 2009

  • agree with slw, with most medical bills you can negotiate them down and then make a payment plan...If you already own your house bankruptcy is a possibility (you could go talk to a lawyer about this option)...but call the collection people on your med. bills and see what kind of plan you can set. dont risk your house though. thats one stable thing you can depend on..its NOT worth it!!!!! GL
    sweetstkissez22

    Answer by sweetstkissez22 at 4:00 PM on Aug. 18, 2009