Question... please answer..feeling anxious.

[YoYo]

Ok, here is my question:

I have received two past due medical bills, one which has now gone to a collection agency. I have filed Ch. 7 and my court date is set for sometime in Jan. or Feb. I received the collections notice after I had filed. The amount is for $79.00 for both bills. There have not been any charges added to the amounts. What happens if it goes through the process of notices, collections, etc...and I pay it b4 my court date and also what if I pay it after my court date? I know it is too late to file it. Is it better to pay it before I am discharged so that it will be taken care of before my discharge date?

Secondly, how can I repair my credit report/score after discharge? Will one or two random medical bills (like the two I mentioned) in this situation effect my credit score? Compared to the total I am discharging, $79.00 is nothing!

Thirdly, as most of us have probably experienced, my credit score is really low! I used to have an awesome credit score. Is there an amount of time after discharge that my credit score will begin to rise?

FInally, could someone explain voluntary reposession of an automobile?

Thanks!1

[pink_amulet]

Did you know about these bills before you filed? It takes awhile for medical office/facility to send an account to collections, usually.
If you listed the medical office/facility on your petition, don't worry about it, they will be included. I had a doctor listed because we had a balance, well right before we filed he submitted to a collection agency, so I didn't have the agency listed however I had the original debt listed so our lawyer said don't worry the "debt " itself is covered, didn't matter who had it at this point!

As for credit rebuild. I'm looking into the same thing. We heard that a few months the score will start to rise, that is if you follow thought and make sure ALL your account are labeled as "included in BK"

As for the repo. We called our van loan place and told them we could not afford to make payments anymore and we wanted to voluntary give up our van. They made sure this was the step we wanted to take, because we would still be responsible for the difference once the van was sold at auction. We were sure, and they came and took the van, we had it ready for them, and a few weeks later we got a letter saying the van was sold for $xxxx, the difference in the loan and what it was sold for is $xxxx, so they wanted the difference. All we did was include the difference in our petition. It still is labeled as a repo on our credit, but it will be discharged with the rest of our debt.

good luck to you

pink-amulet

[StaciMM]

You can add the medical bills to your BK if the debts were from before filing. I think the cost of an amendment is $26. Even though $79 isn't a lot of money, it would be best to include them. If you pay them directly, they may show as paid collections AFTER the BK, which would look like you had bad accounts after filing.

A voluntary repo is where you choose to give the vehicle back rather than waiting for it to be so past due that they come for it. If you're referring to a vehicle that you still have, though, you can surrender it as part of the BK process. (And not owe anything more on it.)

Regarding your credit report-try not to be too concerned w/ your credit score right now. Concentrate first on living without credit, budgeting, and saving $$. (Even if it is only a small amount-its a beginning.) You can start to re-establish credit after the BK by opening and maintaining accounts in good standing. Once you are ready for that, though, it is very important to have everything perfect. You can't afford to have anything negative after the BK. Other than that, time is your FICO friend. (Gradually, the old bad stuff will get older, and new good history will get longer.) Last, but not least, do not apply for anything unless you have a pretty good indication that you can be approved. Inquiries hurt your score-don't waste them!

Feel free to PM me if you want more info!