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    Digging up old debts

    Hi, I just registered here. I have unpaid debts, mostly medical, going back to 1998. Some of them I managed to pay off, others I settled after going to collections, and there is currently about 4000 that I have record of. In addition, last year I went through some major illness and now have another 5K in unpaid medical debt, and had to cut back to just part time work. Right now my income won't even pay my rent plus other bills, so I'm working on moving out of here and in with my boyfriend. Long story short, I am filing a chapter 7 just as soon as I can get the paperwork filled out.

    The thing is I know that I have debts out there that I do not have record of right now. I already checked with all three credit reporting agencies and wrote all those down, but I'm not sure how to find out what the others are. Some of them were charged off 7 or more years ago, so it's possible they just dropped off, but I'm kind of afraid they'll show back up later, or else I'm not positive of the dates. My medical problems have affected my memory a whole lot. Is there some other way I can find that info besides just trying to remember who they are were? I mean I can maybe remember the original creditors, but not how long ago they were charged off, or to whom. I have moved 6 or 7 times since the accounts fell behind so I stopped getting calls and letters a long time ago.

    #2
    You're planning to file over only 9k in debt on your reports?

    Comment


      #3
      Yes. My take home pay is currently less than 700$ a month. It will not be changing anytime soon due to medical issues that I'll be dealing with the rest of my life. I also have two student loans, and if I ever want to have a hope of catching them up and paying them off, and making all the harrassing phone calls stop, I cannot have another 9K (plus I know there's more, and they are not small) in debt hanging over my head. I have been dealing with this for 10 years, and just when I had begun to be able to pay down the debt I had, it doubled. There is really, truly no other way.

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        #4
        Well heres the problem. If you discharge this debt through bankruptcy, then a few months down the road it happens all over again, you are in the exact same boat all over again and there is nothing you can do about it. So then, not only do you have medical debt but a bk on your reports, so your credit is really screwed. And you can't file again for many years.

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          #5
          I understand that, but I am currently covered by Medicaid (have been since November of last year) and am taking steps to make that coverage permanent.

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            #6
            Well I wouldn't file myself until I knew that the coverage was permanent for sure. But anyways, it will be hard to dig up all the old debts. Besides whats on your credit reports, best you can do is look up and call all the places you have been for treatment. Include them if you owe them money. If they say you used to owe money but they sent it to a collection agency, but can't provide you with the info for that agency, just include the first place anyways. If any new collections come up later, it will just be a duplicate claim from the first place which debt you would have already listed. Plus, a discharge orders that ALL debts be discharged, so generally if something resurfaces after you are discharged, all you have to do is provide them with your case information.

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              #7
              Ok thanks, that helps.

              Comment


                #8
                Just a suggestion here, but,.............

                Maybe don't call the old Creditors just yet. Don't wanna open a can of worms if you don't have to.

                With your income, you might qualify for free legal assistance. You'll have to check around and see what the income standard is for your area. It's called Legal Aid some places. Has different names other places. Maybe you can get an attny to assist you for free.

                Also,............ Schedule several Consult appts with attnys that specialize in BK. Be sure to check that the Consult is free. Most attnys don't charge, but some do. Do some research on your own and jot down a list of questions you wanna ask.

                This would be one of your questions. What to do about old Creditors that have dropped off your Credit Reports? How do you go about listing them? You know who some are. Can you just list the Creditors and the addresses or do you need $$$ amounts too?? And what about the ones you can't remember. Will those debts be Discharged as well??
                Filed Ch 7 - 09/06
                Discharged - 12/2006
                Officially Declared No Asset - 03/2007
                Closed - 04/2007

                I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                Comment


                  #9
                  Thanks for the suggestions. I pulled up the Legal Services site for my state and will call them in the AM. A lawyer would make this all alot easier, but I know there's no way I could afford one.

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                    #10
                    I would check on the statue of limitations of collections in your state. AND I would not file for 9k if you don't have anything for anyone to collect from. Chances are your income is exempt. Check with legal aide BEFORE you do anything. Try not to worry too much, and good luck. Hang out here and you'll get good advice.
                    Chapter 7 Pro Se....Discharged Feb. 2006

                    Comment


                      #11
                      Originally posted by cindylynnsmith View Post
                      I would check on the statue of limitations of collections in your state. AND I would not file for 9k if you don't have anything for anyone to collect from. Chances are your income is exempt. Check with legal aide BEFORE you do anything. Try not to worry too much, and good luck. Hang out here and you'll get good advice.
                      I know they can't garnish my wages, and I have nothing to take, but the collections process and the lawsuits are taking such a huge toll on me. I am really bad at saying no, and if I have money in my account I will make a payment and then not have enough for rent. It's not so hard to say no to the rude collections calls, but when I'm at the doctor's office and the nice receptionist is asking me to please make a payment on my balance... If I do it, I feel terrible. If I don't I feel terrible. I can't ever get better this way.

                      Oh, I have found some more old bills and the count is up to over 12K now. I don't even make that in a year.

                      Comment


                        #12
                        Originally posted by somnolence View Post
                        I know they can't garnish my wages, and I have nothing to take, but the collections process and the lawsuits are taking such a huge toll on me. I am really bad at saying no, and if I have money in my account I will make a payment and then not have enough for rent. It's not so hard to say no to the rude collections calls, but when I'm at the doctor's office and the nice receptionist is asking me to please make a payment on my balance... If I do it, I feel terrible. If I don't I feel terrible. I can't ever get better this way.

                        Oh, I have found some more old bills and the count is up to over 12K now. I don't even make that in a year.
                        You are a perfect example of what is called "judgement proof" it sounds like. That means, even if a creditor took you to court (unlikely anyway), they couldn't get anything from you. Most won't bother with the expense anyway. The only thing they can do is harrass you on the phone and with letters.

                        Type the word into search engines and understand your situation before you do something that may later prove to have been hasty.

                        There are ways to legally prevent creditors from contacting you if that is your goal-without filing BK.

                        I understand all you have said, and I can see how you feel over your debt to income ratio. You really should consider a few of the following.

                        Federal law allows you to send a letter (receipt requested) telling your creditors and collections agencies to only contact you via mail. No more phone calls. Others here know more, and there may be some exceptions. Your current medical providers are an exception of course, since you see them in person regularly. I have no experience with this.

                        For other creditors though, even old ones that pop up from nowhere:

                        They can be told to call only on, say, Tuesdays between 1-2pm. Or whenever. The point being that YOU control the situation and they HAVE to obey it or face some serious consequences if they repeatedly get out of hand.

                        Most of us are in a position of not having enough money to repay our debts, whether from our own misguided choices or unfortunate circumstances or both. Some of us simply planned poorly, there are a few casino gamblers here, people like myself who had business failures, and medical issues, and so many more.

                        The main point I think people are trying to get across to you is that you really DON'T have to file for peace of mind. You have nothing a creditor could seize.

                        Yet you might give up the most powerful financial tool at your disposal over a relatively small amount of debt. I have heard BK described as The Neutron Bomb of financial planning. It covers almost everything, which is great. But it can only be used every so often. 8 years now, between filings I think?

                        You never know what will happen down the road. No one would be here if we had adequately predicted our financial future.

                        If you can send a few letters (and there are prewritten ones where all you do is fill in the name and account number of your creditor and sign it) to achieve the peace and quiet you want, that might be better for now. If you can talk to your Dr.'s and explain the situation, they might stop sending you bill altogether. The US Govt money they receive can be lucrative all by itself. If not, consider contacting Medicare/Medicaid and asking for a different clinic that might work with you.

                        It will preserve your ability to use "The Neutron Bomb" option (BK) later, when perhaps you have something that could be bigger and more dire.

                        On the other hand, there are people who have filed on as little as 3k debt. It is a very personal decision, but it is also a very serious decision.

                        DMC
                        Last edited by DeadManCrawling; 04-29-2007, 05:29 AM.
                        11-20-09-- Filed Chapter 7
                        12-23-09-- 341 Meeting-Early Christmas Gift?
                        3-9-10--Discharged

                        Comment


                          #13
                          1. You do not have to list EVERY unsecured debt, only those you are awared of. The law provides that in a no asset Ch7 bk, those unsecured debts which you either do not know existed or do not remember existed, and thus are unable to list them on your Bk filing, are also discharged upon the discharge of the BK. You only need to list those debts that you know about.


                          2. With your no asset and low income, you are judgement proof. According to my state Attorney General's Office, there are ways to stop collection effort without filing. Please contact the Attorney General's office of your state.

                          Comment


                            #14
                            Originally posted by DeadManCrawling View Post
                            That means, even if a creditor took you to court (unlikely anyway), they couldn't get anything from you.
                            Well I have already had a couple of judgements against me. Every year they file to garnish my Permanent Fund Dividend check from the state of Alaska, but my Alaska student loan gets first dibs, so they have no gotten one red cent yet.

                            But see what happens if someday I do manage to break out of poverty level? I'm an artist in addition to my part time day job, and though I don't make a whole lot now, well, it could happen. I do better each year at it. Maybe in the future I'd like the money I work so hard for to actually do me some good instead of going to pay off all these back-bills which are hugely inflated from interest anyway. Maybe one day I'd like to be able to take a vacation like everyone else in the is country gets to. Or buy something kind of frivolous and expensive. I guess if I don't at least have that hope for the future then there's no reason for me to keep trying. I might as well just stay where I'm at because it will never get any better.

                            Comment


                              #15
                              In that case, when you are certain that your medical expenses are covered and that you won't be raking up new debt, then you should file.

                              The other posters' concern was, there is no point in filing and then rake up charges and debts soon after. You wouldn't be able to file for the next 7 years then. That is a legitimate concern. You need to be reasonably certain that you wouldn't end up as we worried.

                              Comment

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