Wondering if Bankruptcy is a good option?

[Dannyboy]

Hello, I am considering filing for bankruptcy but I am extremely confused and wanted to see if I could get some advice. I have recently became ill and was hospitalized which left me a bill of $16,000 for the hospital and about $4,000 to individaul Dr.'s that treated me. I have previous debt on my credit report for about $4,400 and a credit score of 525 (this is before Hospital bill). I currently can't get any sort of credit anyways so I was wondering if bankruptcy is a good option. I have basically no assets of value. But I was thinking because my credit is so bad anyways I might as well file bankruptcy and try to rebuild. However I am wondering about negative consequences regarding employment and renting an apartment because of a bankruptcy on my record. I make about $30,000/year and live in San Diego County. With my income I basically live paycheck to paycheck and don't think I could ever pay these off. Thank You!

[keepmine]

With debts amounting to nearly 100% of your income, a Chapter 7 would seem to be the ticket-espically since you live in an expensive area of the country.
As to renting and job opportunites post bk, some employers will not hire you with a bk and others will-same for renting. You have a job. I'd get my living arrangements fixed before filing.
One caveat here. I hope your job does provide health insurance. If not, I'd not file you have ajob that does offer insurance. What happens if you get sick again? You can only file a Chapter 7 every 8 years-be sure and protect yourself post bk.

[SinkingFast]

KeepMine makes a valid point.

Was the recent illness a one time thing or the first bout of an ongoing condition??

That's a big consideration.

If you're gonna be incurring ongoing debt associated with a health condition, then BK may not be the right choice for you right now.

There are employers who make hiring decisions based on background checks. Which many times do include Credit Checks. Same with Landlords. But many folks here have gotten new jobs and found new rental situations with BK showing in their Credit. It can be done.

[CityGirl]

My friend was 6 months out of bankruptcy and got an $800/mo brand new apt in Birmingham Al. They did a credit check so they know it was there but rented the apt anyway...
It all depends on landlord. I wouldn't worry about that.

[CATCHMEIFYOUCAN]

Think about it

What happens if you get sick again? You can only file a Chapter 7 every 8 years-be sure and protect yourself post bk.

If you're gonna be incurring ongoing debt associated with a health condition, then BK may not be the right choice for you right now.

I would have to agree on that one. I wish I hadn't filed Bk back 12 years ago on 13,000 but at that time I was just young and dumb and wreckless and didn't know what to do besides worrying I was going to some, what I had thought than "debtors prison," but at the same time, to me, in my life it was overwhelming and bk was the only way out. So just think things over, find another avenue, make use of the system (Bk) as the last resort. Look for a reputable Credit Counseling Firm, unlike a Debt Reconsolidation Firm, they can figure a budget for you!

Best Wishes, Catchmeifyoucan

[alh]

Always check with the hospital about options they have for sliding scale fees. Many hospitals will write off huge amount of fees (up to 100%) if you qualify. But you have to inquire and ask about it.

[Bandit]

What happens if you get sick again? You can only file a Chapter 7 every 8 years-be sure and protect yourself post bk.

If you're gonna be incurring ongoing debt associated with a health condition, then BK may not be the right choice for you right now.


Best Wishes, Catchmeifyoucan

I was thinking about this as well. I am going to buy some kind of medical/hospital insurance plan... there is another $200 or $300 a month bill, but to me that is going to be worth it, considering the possibilities of becoming very ill or having another accident- and ya never know.

or just go thru the rest of my life owing doctors and the hospital.