Hello, I was on this forum 4 years ago when we filed chapter 7 due to mounting medical expenses.
We thought our financial mess was behind us but a hit and run car accident, autism diagnosis, and other medical bills have put us way into the red again. Our insurance hasn't covered any of our son's treatment and he is finally getting approved for Medicaid for disability. For the past 3 years we have had well over $1,000 per month in medical bills, plus several surgeries from the car accident. We couldn't afford them, so we put them on credit cards. When the credit cards maxed out, we took out loans from sharks like LendingClub and Avant. Then we couldn't afford daily necessities, maxed out and took out more loans. We owe about $90,000 between the two of us.
Nothing has been late, yet. If I don't make overtime our household income is right under the limit for Chapter 7. But we aren't able to file for 7 after only 4 years.
We have 15 months left on my wife's car of $247 per month. If we decided to file again, I plan to purchase a used car for around $12,000 before filing or defaulting, since my FICO is surprisingly 682. We are 4 months behind on our house payment but it was discharged in 2012 so it isn't effecting my score.
We would like to save our house. Will we be able to add the missed payments into our payment plan? We will be about $6,000 behind in payments when and if we file.
With our expenses, we won't have much, if any, left to pay back our debt.
Filing chapter 13 seems like the best way to be able to rebuild our credit the fastest. We will need to buy a new house in 4 years. If we don't file, we will just default and face the judgements and creditors coming after us - with all the stress that comes with that.
Would we be allowed to file chapter 13? Even with little to no extra money left after expenses? Do you think we will go on a 3 or 5 year plan?
Thank you in advance for any advice you can give.
We thought our financial mess was behind us but a hit and run car accident, autism diagnosis, and other medical bills have put us way into the red again. Our insurance hasn't covered any of our son's treatment and he is finally getting approved for Medicaid for disability. For the past 3 years we have had well over $1,000 per month in medical bills, plus several surgeries from the car accident. We couldn't afford them, so we put them on credit cards. When the credit cards maxed out, we took out loans from sharks like LendingClub and Avant. Then we couldn't afford daily necessities, maxed out and took out more loans. We owe about $90,000 between the two of us.
Nothing has been late, yet. If I don't make overtime our household income is right under the limit for Chapter 7. But we aren't able to file for 7 after only 4 years.
We have 15 months left on my wife's car of $247 per month. If we decided to file again, I plan to purchase a used car for around $12,000 before filing or defaulting, since my FICO is surprisingly 682. We are 4 months behind on our house payment but it was discharged in 2012 so it isn't effecting my score.
We would like to save our house. Will we be able to add the missed payments into our payment plan? We will be about $6,000 behind in payments when and if we file.
With our expenses, we won't have much, if any, left to pay back our debt.
Filing chapter 13 seems like the best way to be able to rebuild our credit the fastest. We will need to buy a new house in 4 years. If we don't file, we will just default and face the judgements and creditors coming after us - with all the stress that comes with that.
Would we be allowed to file chapter 13? Even with little to no extra money left after expenses? Do you think we will go on a 3 or 5 year plan?
Thank you in advance for any advice you can give.
Bankruptcy Wizard
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