paying medical bills on credit cards before filing?

[snuffy]

Due to serious health issues, I have been unable to work for over 6 months. I currently only have 1 credit card which is maxed out at $5000. I have medical bills to pay (apprx. $3000 that is past due). I also have some dental work that needs to be done (several crowns, due to gastroparesis) that will cost around $3000. I'm in constant pain as I can't afford the dental work. My son needs his teeth cleaned prior to braces ($140) and braces ($5000). I am not able to afford any of this due to the loss of my income from my illness. The only option I can think of is putting this on a credit card. However, knowing that I'm not going to be able to pay this off makes me feel like scum. I've been up since 3:00 am getting sick and having panic attacks thinking about this. It doesn't end there - we also have a car (that's paid for) that needs to be replaced as it's very old and not worth sinking money into anymore. Not to mention the home repairs that need to be done. I am so overwhelmed and don't feel like I can handle this (but have no choice as husband has no desire or ability to handle anything financially. Any advice? hope? encouragement? justification? condemnation? whatever - I'll listen. I need help.

[doudis2]

I'm far from an expert, but everything I have read says that you should not use your CC's once you know you are going to file BKT. If you do the trustee can call fraud stating you never intended to pay those debts back, but I think you know all this.

Bottom line, you may be denied the discharge and end up worse off than you are now (out filing and laywer fees).

I wish you the best of luck, but be very careful. I'd hate to hear your situation got worse. It sure sounds like you need to catch a break.

[keptdigging]

I have never read that you lose your discharge for last minute CC use. What you will lose is the dischargeability of those specific charges. You will owe the money for those charges with full interest and you won't be able to bankrupt your way out of it.

I can imagine scenarios where something was so necessary that I'd accept that consequence. Something causing you constant pain... if relieving that pain would enable you to find income... might just be worth it. (I can't know because I literally can't feel your pain, of course.)

From what you've said, though, it doesn't sound like you have a credit card available.

Another thought: are there other reasons your contemplating bankruptcy besides a $5000 CC and $3000 in overdue medical bills? Is there some reason to file soon? If you have credit available one way to not have the charges be "on the eve of bankruptcy" is to not file... or file much later. And if you've got medical issues you may run up more bills that you'll need the bankruptcy option for. Remember you can't just turn around and do it again in a year or two.

BTW: The letter of the law is that charges made within 90 days of filing are presumed to be non-dischargeable. However big charges made earlier than 90 days can still get challenged by creditors. $3000 may raise eyebrows.

One clear piece of advice I can give you is this: Don't feel guilty. We all have to do what we have to do in hard times. There is nothing immoral about it. And those banks, they do everything the law allows them.

Also I'm not a religious guy, but I don't recall a commandment saying "Thou shalt pay back all your loans." Do what you need to do.

[doudis2]

Hello Again,

Just to clarify; it is not the last minuite CC charges so much as the quantity of last minuite charge that can raise a red flag (FRAUD ALERT) that could cause a case to be thrown out. I do not speak from experience, but I have an attorney that advised me as such.

Again be careful and good luck OP.

[snuffy]

Thank you to all who responded. I really appreciate it - and particularly because none of your made me feel like scum. I have so much guilt and angst about my situation as it is, yet no one here has judged me. so...thank you I am not planning to file bankruptcy now. I guess I just need to know if it's even an option down the road. Basically, what I'm saying (opting for full disclosure here) is that I have bills and no way to pay them. I am considering getting another credit card (or 2) and put my medical bills and whatever other bills we can't pay on the new card (s). Then, presumably at some point (maybe a year), we file bankruptcy. I don't feel right about this. I don't feel good about this. I just don't see any other options. The money is simply not there. Thanks for your help and I'm always open to hearing any ideas. Love, snuffy

[Flamingo]

Snuffy....if you have been out of work for six months, have bills already and are stating you want to get other credit cards to pay those bills, you may not qualify to get other credit cards and will have to face reality head on as hard as that may be for you. Realize that charging items with the intent on not paying for those items is fraud and is easily caught by creditors and trustees. Getting more credit and running up more bills is just a form of denial because unless someone knocks at your door with a $100,000 check, you will not have the money to pay the debt. You will just get further in debt and the denial will fade away and you will realize you are stuck. Also realize that filing bankruptcy does not resolve your cash flow or employment issues. While it takes away the debt, it doesn't give you a job or income.

Best of luck to you...