How to finish medical treatment before filing

[stressedinTN]

I keep reading finish any medical treatment before filing. What if treatment requires you pay in full at the time of services? What if you need to use a credit card then? I'm being told once I have talked to a bankruptcy attorney I cannot use a credit card. I'm understanding the trustee asks and double-checks that.

Can someone please clarify?

[justbroke]

You're reading a hodgepodge of things and each can make sense individually.

First, the theory on medical treatment is to be able to discharge large medical debt once you're sure there won't be any more major medical bills. A Chapter 7, and even a Chapter 13, is not something you can file every year to get rid of debt. They are each a nuclear option destroying debt, but also destroying your ability to discharge any more debt for 6-8 years.

Second, I've never read that a Trustee "double checks" that you used credit after consulting an attorney. Never. What you may be reading is that "some" creditors may file a dischargeability complaint seeking to keep you from discharging debt that you accumulated (with them) because you knew you couldn't pay. This doesn't happen that often. Most Chapter 7 cases (well over 90%) sail through without a peep from any creditor. You would need to do something really fraudulent, like obtain thousands of dollars in credit from a single creditor, charge up the card/account, then immediately file bankruptcy. It's costly for a creditor to file such a complaint so we don't tend to see these for amounts under $4,000; that is not to say that a creditor would not do so if it's confident. The creditor would need to prove fraud which is difficult.

The real question is whether you really need to file bankruptcy now. If there is some other compelling reason to file, such as saving your home, then you have to weigh one issue (medial) over another issue (losing home).

(It can be assumed that you are "insolvent" when you seek the advice of a bankruptcy attorney. Since you are then assumed to be "insolvent", you should not accumulate debt. Any accumulation of debt "may" be fraud because you knew you could not pay. Very few cases deal with this problem. It's typically a case where it's quite obvious that the debtor accumulated debt "on the eve of bankruptcy" knowing that they would never repay the creditor. The creditor still needs to "prove" that you knew you couldn't pay. This accumulated debt is typically things like taxes and luxury items charged to the credit account within as few as 90 days before filing. The 90 days is the "presumption" of insolvency.)

[stressedinTN]

Thank you so much for clarifying that. You're a great help, and I much appreciate it.