EVER SINCE MY HUBBY AND I HAD OUR FIRST SON.. WE'VE BEEN SCREWED LEFT AND RIGHT WITH HIS INSURANCE.   HAVING TO PAY BILLS THAT WE SHOUDN'T HAVE HAD TO PAY ETC .. LONG STORY SHORT.. WE HAVE A TON OF MEDICAL BILLS THAT WE CAN'T PAY.    NITHER ONE OF US HAVE CREDIT CARDS ETC.. OR CARDS FOR STORES ETC.. BASICALLY ALL OUR DEBT IS LITERALLY MEDICAL BILLS AND NOTHING ELSE.

 WHEN YOU THINK ABOUT IT.. PRICE OF LIVING IS SOO OUTRAGEOUS.. WERE ALREADY PAYING 1,100 FOR A SMALL, CRAPPY TWO BEDROOM APT.. GAS AT THE CHEAPTEST IS 4.25 WHERE I LIVE ETC.. SO WE DONT HAVE HUNDREDS OF DOLLARS TO THROW AT BILLS EACH MONTH.   IF ITS KILLING HIS CREDIT... IT'LL TAKE YEARS JUST TO GET HIS CREDIT SCORE UP.. SO WERE THINKING OF  START WITH A NEW SLATE... AND JUST DECLARE IT.

 WE WANT TO MAKE CONSULTATION OPPOINTMENT FOR BOTH BANKRUPTCY AS WELL AS DEBT CONSOLIDATION.. BUT I JUST WANTED TO GET SOME INPUT FROM ANYONE THAT MAY HAVE GONE THROUGH ITHER.  I MEAN.. WE HAVE NOTHING TO LOSE.. LITERALLY.. WE DONT OWN ANYTHING... WE DONT HAVE A NEW CAR (WE HAVE MY GRANDFATHERS 92 THUNDERBIRD) THERES NO ASSESTS THAT ANYONE CAN TAKE AWAY FROM US. THE WAY I LOOK AT IT.. IS WE TRUELY ARE GETTING A FRESH SLATE... WE'VE DONE NOTHING WRONG... TO BE IN DEBT OR CAUSE OUR DEBT.. SO ITS SUPER FRUSTRAITING.

 MY FRIENDS DECLARED IT.. DUE TO HAVING CHARGED A TON ON THEIR CREDIT CARDS.. MYD DAD HAS IN THE PAST ETC.. ALMOST EVERYONE I KNOW THAT HAS DONE THIS.. IS DUE TO THE FACT THAT THEY HAVE CHARGED BEYOND WHAT THEY SHOULD HAVE. HERE WE ARE.. A YOUNG COUPLE.. STARTING OUR FAMILY.. AND HAVE CHARGED NOTHING.. SO ITS SOOO FRUSTRAITING =( WERE ALWAYS IN THE HOLE NO MATTER WHAT WE DO.. I KNOW LIFE ISNT FAIR.. BUT WE HAVENT DONE ANYTHING TO DESERVE TO BE SCREWED LEFT AND RIGHT. LUCK IS SOMETHING WE CERTAINLY DONT' SEEM TO HAVE THATS FOR SURE.

ALL IN ALL...  ANY INPUT IS GREATLY APPRECIATED! THANKS IN ADVANCE!

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Comments:

SFerber
Jun. 1, 2008 at 9:14 PM

Hey sweetie...I have something to say...  Check out DAVE RAMSEY  There is a great group here on Cafe Moms that can give you info too. 

If I could whispe (don't do it) on the other 2 points.  Would you listen?  Go to his site...  

 

Total Money Makeover is one of his books.  

 

HUGS and you are in my prayers! 

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SFerber
Jun. 1, 2008 at 9:15 PM If you need my personal help LET ME KNOW...  I have had HUGE debt because of medical expenses.  Maybe we need to have a for real phone chat.

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gusti...
Jun. 1, 2008 at 9:16 PM I WOULD JUST DO A CHAPTER 7 AND BE DONE WITH IT I DID IT 20 YEARS AGO

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Kyles...
Jun. 1, 2008 at 10:12 PM thank you soooo much for your replies! *hugs* i really appreciate it! my whole world is spinning right now.. i just want to clear all the worries for once... just dont want to jump into anything too fast..

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SFerber
Jun. 2, 2008 at 12:03 AM

Pros and Cons of Declaring Bankruptcy under Chapter 7 (Straight Bankruptcy)


There's no question that deciding whether to declare bankruptcy is very difficult. It affects your future credit, your reputation and your self-image. It can also improve your short-term quality of life considerably, as the calls and letters stop. Here is a list of pros and cons to consider as you decide whether Chapter 7 bankruptcy is the best option for you.

CONSPROS
Bankruptcy will ruin your credit for some time to come. A Chapter 7 bankruptcy can remian on your credit report for up to 10 years.Although a bankruptcy stays on your record for years, the time to complete the bankruptcy process under Chapter 7, from filing to relief from debt, takes only about 3-6 months. So, the trade-off is a lasting mark against your credit in exchange for freedom from most debt. If you decide against Chapter 7 when it may be the right decision for you, your missed debt payments, defaults, repossessions, and lawsuits will also hurt your credit, and may be more complicated to explain to a future lender than bankruptcy.
You will lose property that you own that is not exempt from sale by the bankruptcy trustee. You may lose some of your luxury possessions.Most state exemptions allow you enough so that most things you own will be exempt from bankruptcy, sometimes allowing more coverage to keep your property than you need. Additionally, you will get to keep the salary or wages you earn and the property you buy after you file for Chapter 7.
You will lose all your credit cards.Your credit cards probably got you in this mess to start with, so it's hard to see that as a bad thing. You may also be able to obtain new lines of credit within one to three years of filing bankruptcy, although at a much higher interest rate.
Bankruptcy will make it nearly impossible to get a mortgage, if you don't already have oneThere are lenders who specialize in lending to "bad risks," although that is an unfair characterization to make of someone who has taken a major step to solve financial difficulties.
Declaring bankruptcy now might make it harder to do later if something worse comes along. For instance, if you complete the bankruptcy process under Chapter 7, you cannot file for another Chapter 7 bankruptcy for six years. The six years is counted from the date you last filed for bankruptcy.Declaring bankruptcy now can get you started sooner on rebuilding your credit. Although, you can only file under Chapter 7 once every six years, you can always get a Chapter 13 plan if there is another disaster before you are entitled to file for Chapter 7 again. You may file for a Chapter 13 plan repeatedly, although each filing appears on your credit record.
Bankruptcy will not relieve you of your obligations to pay alimony and/or child support.Short of a court order from family court, nothing else will relieve you of your alimony and child support obligations. At least bankruptcy will alleviate many of your other financial obligations
Bankruptcy will not get rid of your student loan debt.Nothing will get rid of student loan debt, and at least bankruptcy will prevent your lenders from aggressive collection action.
You will have to explain to a judge or trustee how you got into a financial mess.Both judges and trustees have heard far worse stories than yours.
You cannot file for Chapter 7 bankruptcy if you previously went through bankruptcy proceedings under Chapter 7 or Chapter 13 within the last six years.If, however, you obtained a Chapter 13 discharge in good faith after paying at least 70% of your unsecured debts, the six-year bar does not apply.

You cannot file for Chapter 7 bankruptcy if a previous Chapter 7 or Chapter 13 case was dismissed within the past 180 days because:

  • you violated a court order, OR
  • you requested the dismissal after a creditor asked for relief from the automatic stay
You can avoid these harsh limitations against refiling for bankruptcy by observing all court orders and court rules, and by not asking to have your case dismissed when a creditor asks for relief from the stay. Even if these limitations apply to you, they don't last forever. You're only prevented from refiling for six months. It may make sense to at least consult with an attorney prior to filing for bankruptcy to avoid limiting your bankruptcy options in the future.
You may still be obligated to pay some of your debts, such as a mortgage lien, even after bankruptcy proceedings are completed.If you don't owe money on the type of debts that survive bankruptcy, the amount and number of debts that a bankruptcy court can relieve you from paying is potentially unlimited.
If you file for Chapter 7 relief, but you have a certain amount of disposable income, the bankruptcy court could convert your Chapter 7 case to a Chapter 13, thus changing your plan to be free from most debts within four to six months, to a plan requiring you to repay your debts over the course of three to five years.Chapter 7 does not require that you have debts of any particular amount in order to file for relief. However, even if your case gets converted to Chapter 13, it can still improve your financial situation by obtaining more favorable terms to pay off your debts. With Chapter 13, you get to keep all of your property as well.

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SFerber
Jun. 2, 2008 at 12:07 AM

http://www.daveramsey.com/the_truth_about/bankruptcy_3018.html.cfm

The Truth About Bankruptcy


Myth: I'll just file bankruptcy and start over; it seems so easy.
Truth: Bankruptcy is a gut-wrenching, life-changing event that causes lifelong damage.

Bankruptcy. That word sends chills up the spine. If you're facing the prospect of bankruptcy or in the middle of it right now, you know it's a living nightmare. It can devastate your job, destroy your marriage and steal your peace of mind. 

bankruptcy, avoid bankruptcyKathy called my radio show ready to file bankruptcy. Her debts were overwhelming, and her cheating husband had left with his girlfriend. The house was in his name, as was all the debt except $11,000. Kathy was 20 years old, and her brilliant uncle - a lawyer from California - told her to file bankruptcy. Kathy was beat up, beat down, and deserted without help, but she was not bankrupt. When her soon-to-be ex-husband ends up with all the debt in his name, he may be bankrupt, but Kathy won't be.

Why Avoid Bankruptcy?
Bankruptcy is not something I recommend any more than I would recommend divorce. Are there times when good people see no way out and file bankruptcy? Yes, but I will still talk you out of bankruptcy if given the opportunity. Few people who have been through bankruptcy would report that it is a painless wiping-clean of the slate, after which you merrily trot off into your future to start fresh.

Don't let anyone fool you. I have been through bankruptcy and have worked with bankruptcy for decades, and it is not a place you want to visit. Bankruptcy is listed in the top 5 life-altering negative events that we can go through, along with divorce, severe illness, disability, and loss of a loved one. I would never say that bankruptcy is as bad as losing a loved one, but it is life-altering and leaves deep wounds both to the psyche and the credit report.

Types of Bankruptcy 
Chapter 7 Bankruptcy, which is total bankruptcy, stays on your credit report for 10 years. Chapter 13 Bankruptcy, more like a payment plan, stays on your credit report for 7 years. Bankruptcy, however, is for life. Loan applications and many job applications ask if you have ever filed for bankruptcy. Ever. If you lie to get a loan because your bankruptcy is very old, technically you have committed criminal fraud.

Most bankruptcy cases can be avoided with proper help, such as our certified counselors and the Total Money Makeover. Your Total Money Makeover may involve extensive amputation of stuff, which will be painful, but bankruptcy is much more painful. If you take the thoughtful step backward to get on solid ground instead of looking at the false allure of the quick fix that bankruptcy seems to offer, you will win more quickly and easily. I know from personal experience the pain of bankruptcy, foreclosure, and lawsuits. Been there, done that, got the t-shirt, and it is not worth it.

 

More Bankruptcy Info:

New to Dave Ramsey?

People who read this also checked out:

This content is provided by DaveRamsey.com and may be used only in its entirety with all links included. Dave Ramsey is changing the face of America by helping people avoid bankruptcy and get on the path to being debt free.

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SFerber
Jun. 2, 2008 at 12:14 AM

And finally:

 http://www.bankruptcylawinformation.com/index.cfm?event=dspKeyChanges

 

Please look at this KEY CHANGES section.  The laws changed in 2005. Someone having done it prior to that can not give you accurate information with out first looking through this lense.

 

If what you owe is mostly medical bills you can get them reduced and possibly some even forgiven. 

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SFerber
Jun. 2, 2008 at 12:26 AM

Ok I just looked this up on his site...typed in search MEDICAL BILLS

 

Here is what popped up.

QUESTION: Kristin asks if hospitals will take settlements for medical bills.

ANSWER: Most past-due bills will take a settlement and medical bills will usually take a settlement for pennies on the dollar since they’ve gotten most of their money from the insurance companies.  Go to them with the $1,000 you still owe them, tell them you’ve got $250, and they’ll most likely take it.  Just make sure you get the settlement agreement in writing.

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proud...
Jun. 4, 2008 at 11:49 PM

We just filed bankruptcy 3 year ago and I can say that it was good for us but...  we was one of those that ran up credit cards and etc.  The thing is once you file you can't ever file again so look at it this way.  If you file now you don't have a house or car etc so when you do have those things if you get in a bind you can not file again.  I would not do it at this time.  You can call on the medical bills and make arrangements for 5 dollars a month and they will show it on your credit as making payments and it should not look bad.  We have since done some of the settlement agreements.  We owed a medical bill from my hysterectomy this past july and we owed 723 dollars and they settle with us for 120 so you may look into that.  Definetly get it in writing cause if they put in on your credit report you can fight it.  Well I hope this has helped.  I would watch consolidating we got screwed around and was out alot of money because it was not going where it was supposed to be going.  Well the last thing I can tell you is if you file bankruptcy you will need to get a credit card or a line of credit somewhere within a year after to start rebuilding your credit.  First Premier Bank will issue one with a low line of credit.  Well good luck and pray about your decision.

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