Using credit cards to pay bills

[flower]

What do they consider not relevant? I'm paying for my doctor visits, prescriptions, vitamins which keep me from being bedridden (though I have only been able to work at most 3 days per week), utility bills, food, etc. My significant other is helping me quite a bit, but it has been very hard.

Disability is next to impossible to get if you are working at all (you get three tries at it and then you are finished, you cannot file anymore. The first time you try 75% of people are turned down, the second time you try the percentage of people who are turned down is higher, the third time requires an attorney and you have a 50% shot at it then. And all the attorneys tell me not to work). The whole process takes about three years. But the disability office expects you to have frequent doctor's visits, and medical tests taken etc. and I have no insurance. They want you to be taking your medicine to prove that you are trying to get well. What am I supposed to do? No wonder people become homeless.

So I have an income of around $4,000 and a debt of around $30,000. I have been sick since 2001. I'm steadily improving, but it has been slow. Some of the expenses went for covering health insurance premiums, but quit that because it became ungodly high.

I believe I will meet the house exemption okay, but if they think I have been fraudulent by trying to get well, how in the world would they expect me to pay any of this back. Obviously I can't. Since I have no money, would they seek criminal charges?

Oh God. I'm so scared. And stress is the worst thing for this illness.

[Spartan]

Not to worry. This is not the kind of fraud that brings criminal charges. Fraud in this case, only means you cannnot seek relief using bankruptcy. You wouldn't be charged if you can't pay your bills. Those days are long gone.

[flower]

So given that I can't pay off $30,000 with a $4,000 income, then how would my bankruptcy be handled? I think I would meet all of the excemption for the house, etc. If they think I committed fraud by paying my bills with the cards, then would they still try to take my house if it meets the exemption requirement? Could they do that legally?

Why would my credit card companies keep offering me credit card checks to do with them as I wish, when they surely know I have a very, very poor credit rating? How could they turn around and blame me? Wouldn't they be responsible for making the offer? I'm just trying to heal my illness. What a nightmare!

[Spartan]

Not to worry. If your house is exempted, then it is exempted. You will always have your house then. Those unsecured debts that cannot be discharged, will just sit there waiting for the day you have money to repay them. If you don't have the money, then they are simply out of luck. That is the cost of doing business. Don't worry, they will or have gotten, it back from other customers. Unless they file suit and get a judgement against you, the debts will simply run out of their statute of limitation in 6 yrs (or even shorter, depending on your state) If they get a judgement, then it will take 10 years for the judgement to expire. They can renew it for another 10 years. But it will all be for naught. They can't collect what you don't have. They have just wasted the court fee and attorney fee. lol

If the only asset you have is exempted, and you are not making enough money for them to garnish your wages, then you are basically judgement proof. You can tell the creditors to get lost. You don't even have to file bankruptcy. That is what the State's Attorney General's office advice. Save your money. Don't need to file bankruptcy. It says so in the booklet from the Attorney General's office. I have it here in front of me. It does say there are ways your can get your lawyer to tell the creditors to shove it.

I would advice you to open a bottle of champaign and forget your worry. It isn't your worry. It is the creditors' worry. lol They can't collect from you. You are free. You are judgement proof. Nothing can be done to you or about you.

[flower]

Spartan, what a relief. What state do you live in? I'm in Indiana. I'll see what our state's attorney general office says. Thanks so much!