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Getting a loan after Bankruptcy. help please.

Ok so I have about $20,000 in medical bills I just simply CAN'T pay off. I am thinking about doing a bankrupcy just to get on with my life and away from bill collectors. I don't want to do this but I simply cant keep up and they are garnishing my wages soon. My SO and I are getting married in August, he has great credit, paying on a house but we would like to buy a new house in a year or 2. does anyone know how hard it would be for me to get onto a loan with him after a year after bankruptcy>>

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Anonymous

Asked by Anonymous at 12:35 AM on May. 23, 2010 in Money & Work

Answers (6)
  • In this market, almost impossible. Why not take out the loan to pay off the medical debt instead? Pay on that until it's done (debt snowball, check out Dave Ramsey) and THEN get a house? Or set up payment plans with the collectors? If you go bankrupt it will take 7 years to rebuild your credit. But if you use your SO's good credit to pay off the debt with a loan, it looks a whole lot better.

    Trust me on this one, a mortgage is a bigger responsibility than med. debt. I have both and if you can't afford to pay on that then there's no way you can afford a house and all the maintenence it requires. We're almost bankrupt ourselves because we mishandled medical debt we accrued AFTER we bought our house. Avoid it if you can. Wait a few more years and pay off the med. debt first.
    Ati_13

    Answer by Ati_13 at 1:00 AM on May. 23, 2010

  • Bankruptcy will be on your credit history for at least 7 years and then you would be able to build credit after that. I agree with Ati's advice.
    Anonymous

    Answer by Anonymous at 1:11 AM on May. 23, 2010

  • a YEAR? in this economy.... impossible. personal loan, maybe. private loan w/ a co-signer? sure.

    is that $20,000 it for back debt? and is mainly the same medical? (IE a major surgery?) if it's all (or the bulk of it) from the some medical company/hospital system they ALWAYS have internal refinancing things and consolidations, payment plans, etc. and YES YOU CAN pay it all back.... it just might be $10 a month for a long ass time.

    call the biggest debt places and tell them to take "whatever'" a month (10, 20, 30 dollars) or else you'll simply fork over your last paycheck to a lawyer, file chapter 7, and they'll never see a penny of it. and garnishing you is a hassle and investment for them. they'll work with u and never call your bluff, i promise

    hibbingmom

    Answer by hibbingmom at 4:54 AM on May. 23, 2010

  • PS ..... if applicable consider switching from a large bank to a small credit union. why? it's teeny, they'll know u and u wont get lost in the crowd. if they ever receive a lien on your bank balances they'll be kind and call you, giving u a small amount of notice to do damage control. and oh, if are in immediate danger, schedule a private meeting w/ the payroll director where u work. ask for immediate notice from her/him if she/he recieves garnishment ppwk on u
    hibbingmom

    Answer by hibbingmom at 4:56 AM on May. 23, 2010

  • I would first try setting up a payment plan. These are collections and because of the large amount it will be difficult to get a mortgage with them still open even if you are making payments. If you have to file bankruptcy it is not as bad as everyone has said. You will begin to receive credit card offers within a couple of months after your bankruptcy is discharged. You can purchase a home within 2 years of your bankruptcy being discharged even in this economy. If you have any questions send me a message I have been through bankruptcy and also work in the mortgage industry.
    Kari126

    Answer by Kari126 at 10:28 AM on May. 23, 2010

  • We used got our bankruptsy cleared 3 years ago we still have another 3 years to go before we can get a house.
    baby1love

    Answer by baby1love at 10:52 AM on May. 23, 2010

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