Post Petition Medical Debt - Frustrated. 😥

[Leahnc25]

One year after filling Ch13, I needed to have pretty major surgery. Totally unexpected of course. Ended up owing approx $5,000 after insurance. We asked our atty if we could add the medical debt to the plan and the answer was no. We kinda figured but asked.

Ive been unable to make any debt payments towards the medical bills due to our limited finances. I'm feeling defeated as I found out today that my credit score dropped 13 points after one of these bills (radiology bill) got sent to collections and then reported to all credit bureaus. It was only a $52.00 debt.

I am sure the other bills will be sent to collections too. I sent them a little bit of money right after my surgery to try to pay the balance over time, but of course they wanted a set amount. I still was sent to collections 🥺

I just feel so frustrated and defeated by this whole process. I can't get ahead no matter how hard I try. I was really hoping for a clean slate after chapter 13, but this medical debt will be there waiting for me and now affecting my credit report/score too. I was hopeful to start rebuilding but will have this obstacle to get through.

Is this common to have debts on credit report during chapter 13?

Filed a 13 to save our home from forclosure.

[justbroke]

I'm sorry to read about this. Any post petition creditor can take any action to collect a debt, except for actually going after property which may still be property of the bankruptcy estate.

There are two things, well three, that typically derail a Chapter 13; 1.) loss of income, 2.) inability and/or refusal to budget, and/or 3.) unanticipated medical debt. While around 51% of Chapter 13s today make it to discharge, the others suffer (mostly) from one or more of those derail issues.

You could seek permission to borrow, but you'll have to weigh whether this will hurt you in the future. Depending on whether the Trustee paid off the arrears already, you could consider dismissing then refiling later. It's a tough decision regardless.

[Leahnc25]

Yes, it is a tough decision. Thank you for responding and explaining things.
The arrears aren't paid yet unfortunately 😥

[despritfreya]

One year after filling Ch13, I needed to have pretty major surgery. Totally unexpected of course. Ended up owing approx $5,000 after insurance. We asked our atty if we could add the medical debt to the plan and the answer was no. We kinda figured but asked.

You indicate that you have only been in the Chapter 13 for a year. To me this is not a big deal as I see two relatively easy answers to the problem:

1. Depending upon how much your Plan payment is, ask for a waiver (moratorium) for a few months so that you can pay off the medical bills. The waived payments will need to be caught up either by extending the Plan if you are not already at 60 months or setting the Plan payment at a higher amount once you resume payments. If your Plan payment includes conduit (on-going) mortgage payments the requested waiver would not apply to that portion of the monthly payment that covers your regular mortgage payment.

Or

2. Get the medical providers to file post petition claims pursuant to 11 U.S.C. 1305(a)(2). Once those claims are filed, modify the Plan to pay the claims as allowed by 11 U.S.C. 1322(a)(6). Spreading $5,000.00, plus the Trustee’s fee of 10%, plus any additional attny fees over the next few years should not make your Plan payment “skyrocket”.

If you have not already done so, talk to your attny about these possible options.

Des.