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Can I BK before it all goes bad?

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    Can I BK before it all goes bad?

    Here is the basics of my story, I will try to keep it brief.

    My Son had a kidney transplant in 1995 when he was 4 years old.
    Medicaid and Champus covered the cost of the transplant (I was in the Navy at the time). He is doing well 15 years out.

    Even thou he is not longer in school he has remained on my benefits from my job. No one has ever asked about his status until now. We have all received letters from and accounting firm that is doing a dependency audit and they have asked for collegiate enrollment records, class schedules, etc.

    Since he does not meet any of the qualifications to remain on my benefits, I am going to take advantage of the amnesty period and report him so I don't get stuck with any past bills or jeopardize my employment.

    His anti-rejection meds run about $2900 a month with out benefits, he also has two physicals a year that include biopsies of the kidney. These appointments with out benefits cost about $11k each. Medicaid will not cover maintenance drugs two years after transplant.

    I can afford to pay this bills out of pocket if I can get rid of my unsecured debt. I had an 80K HELOC that got cut out from under me right in the middle of tons of work being done on my 60 year old home. Plumbing, electrical, roof, boat dock, etc. I had no choice but to use convenience checks to pay the contractors.

    I am current on all my debt and make more than the minimum payment on most of them.

    Maybe there is an option I am not aware of, but here is the ones I can see:

    1. Write my creditors and tell them about my situations. I am sure most of them would choose their sons life over paying unsecured debt, but they would never admit this. Does corporate America have any compassion or would I be wasting my time?

    2. Stop paying the bills and bury them in paperwork until the SOL is up? (4 years here in Florida). Since I have been dealing with insurance companies and medical/doctor bills for the last 15 years I am pretty familiar with FDCPA and have successfully settled lawsuits against debt collectors for FDCPA violations. Not one of the 13 collectors on my credit report had made the required $50k cash bond to collect in the state. They knew before we stepped into chambers they were going to lose as soon as the Judge asked the clerk to check their bond.

    Would a Judge side with a bill collector and allow a garnishment knowing that I would no longer to be able to afford my sons meds, and he will die with out them?

    3. File a straight up chapter 7, explaining that I need the 5k a month I now pay my unsecured debt with to save my sons life?

    Something has got to give. I can not pay for the meds and pay my debt.

    He just had his check up this month and we are going to get 3 months worth of scripts filled before he gets removed from my benefits. I have about until June to make a move...

    I just don't know what that move is.

    #2
    1. Yes you are wasting your time, they could care less what happened to you.

    2. You sound very educated on the topic, you can always try, right? A judge might let them, but to a lower extent.

    3. I say, do a 7, take care of your child, and get on with life and call it a day.

    Comment


      #3
      You don't need to explain anything to them to take the Chapter 7 other than a brief reason how you got into the debt. Just do it and free up that debt to take care of your son. If you make 5k in payments to unsecured debt each month, I say stop paying them now(with the exception of a home and car you want to keep) and contact a lawyer to start ch7. Good luck!
      Filed Ch7 10/14/09 - 341 11/23/09
      Last day for objections 1/22/2010
      Discharged!!! 1/25/2010
      Closed! 1/28/2010

      Comment


        #4
        Originally posted by JacksDad View Post
        Would a Judge side with a bill collector and allow a garnishment knowing that I would no longer to be able to afford my sons meds, and he will die with out them?
        A judge should side with the law.

        As to you, you should side with your family. You don't owe anyone an explanation for anything. Family comes first. Take care of you and yours because without family, nothing else matters.

        Sounds to me like you need to be working towards a chapter 7.

        Good luck.
        All information contained in this post is for informational and amusement purposes only.
        Bankruptcy is a process, not an event.......

        Comment


          #5
          Is it possible to get him in school and keep him on your insurance?
          Not trying to be overly negative but, what happens if he suddenly needs far more medical care than checkups or drugs?
          I'd vote for a combo of getting him back on your insurance by getting him in school {if possible} as well as exploring the possibility of bk.

          Comment


            #6
            Originally posted by keepmine View Post
            Is it possible to get him in school and keep him on your insurance?
            Not trying to be overly negative but, what happens if he suddenly needs far more medical care than checkups or drugs?
            I'd vote for a combo of getting him back on your insurance by getting him in school {if possible} as well as exploring the possibility of bk.
            He was expelled from HS for not meeting the states minimum attendance requirements for 3 years straight. He was always in and out of the hospital, got held back a grade, and it just become impossible for him to catch up.

            It did get a GED before his class graduated.

            He has terrible study habits and has no interest in school. He does work full time at Target, but they do not cover pre existing conditions. We were hoping the Government would come thru, but with Brown getting the seat in Mass. it looks like any chance or a pre-existing condition clause in the health care reform bill is toast.

            Comment


              #7
              Also.. to help.. in case you don't know.

              Tell your sons doctor he can no longer afford the anti rejection medications. The pharmaceutical companies have programs that provide the medications at little or no cost to qualified patients who have already been taking them when requested by the physician.

              Cellcept, rapamune, tacrolimus, etc. all have programs, but you need to ask and fill out lots of paperwork.

              I wish you the best in whatever happens!
              Last edited by forgotten; 01-27-2010, 01:29 PM.
              Filed CH13 - 06/2009
              Confirmed - 01/2010

              Comment


                #8
                Originally posted by JacksDad View Post
                He has terrible study habits and has no interest in school. He does work full time at Target, but they do not cover pre existing conditions.
                Are you sure they don't cover pre exisiting conditions when you can show evidence of continued insurance since his condition occured? I haven't seen a group policy that doesn't... of course, I haven't read targets group policy either.
                Filed CH13 - 06/2009
                Confirmed - 01/2010

                Comment


                  #9
                  Originally posted by keepmine View Post
                  Not trying to be overly negative but, what happens if he suddenly needs far more medical care than checkups or drugs?
                  Our Medicaid works in strange ways when it comes to transplant patients.

                  If he rejects the kidney they will pay for a new one ($90k)
                  If he goes on dialysis they will pay for it ($15k a month)

                  They just won't pay for the maintenance drugs.

                  Kinda like how they wont pay $1500 for lasiks, but they will pay to keep you in glasses your entire life.

                  Comment


                    #10
                    Originally posted by forgotten View Post
                    Also.. to help.. in case you don't know.

                    Tell your sons doctor he can no longer afford the anti rejection medications. The pharmaceutical companies have programs that provide the medicications at little or no cost to qualified patients who have already been taking then when requested by the physician.

                    Cellcept, rapamune, tacrolimus, etc. all have programs, but you need to ask and fill out lots of paperwork.

                    I wish you the best in whatever happens!
                    I get the same response from them all when we apply for these programs...

                    "You make too much money".
                    These programs are for the indigent.

                    Comment


                      #11
                      Originally posted by JacksDad View Post
                      I get the same response from them all when we apply for these programs...

                      "You make too much money".
                      These programs are for the indigent.
                      From working at target? You shouldn't have to include your income as he is over 18. Have him pay you rent, he lives there on his own with rent that takes most of his check.
                      Filed CH13 - 06/2009
                      Confirmed - 01/2010

                      Comment


                        #12
                        Originally posted by forgotten View Post
                        From working at target? You shouldn't have to include your income as he is over 18. Have him pay you rent, he lives there on his own with rent that takes most of his check.
                        His mother and I are divorced. He lives in New Hampshire with her. I live in Florida. Because of his medical conditions, he has been deemed my dependent until his 21st Birthday, and this will probably be extended until he is 25. This is pretty standard when your child is considered 'disabled'.

                        I am also supposed to be paying child support ($1750 a month), but the X let me off the hook when he got a job. I am still responsible for maintaining his health care insurance and responsible for the bills if he has no insurance.

                        Since he is my 'dependent' the decisions are based on my income.

                        Comment


                          #13
                          Originally posted by forgotten View Post
                          Are you sure they don't cover pre exisiting conditions when you can show evidence of continued insurance since his condition occured? I haven't seen a group policy that doesn't... of course, I haven't read targets group policy either.
                          I agree with Forgotten, I believe it's a Federal Law. As long as you can show continous coverage for the previous 6 months, then the pre-existing clause should be waived. Also, if he declined coverage through Target since he had other insurance, once yours ceases he should be able to enroll in Target's plan.

                          Hope this helps.

                          Comment


                            #14
                            Sounds like you have a pretty good income. Have you completed the means test? Assuming he got dropped from your insurance you would have a very high medical expense, but if you have been paying 5K a month to unsecured creditors, you still might not qualify for a 7. I would nail down whether or not you qualify, and if so that would be the route I would take. Just .. just my opinion.

                            Good Luck!
                            Wife Laid off - 11/16/2009 Missed First Payments - 12/5/2009
                            Filed Chap 7 - 12/31/2009
                            341 - 2/12/2010
                            Discharged - 4/19/2010

                            Comment


                              #15
                              Originally posted by SunshineGal View Post
                              I agree with Forgotten, I believe it's a Federal Law. As long as you can show continous coverage for the previous 6 months, then the pre-existing clause should be waived. Also, if he declined coverage through Target since he had other insurance, once yours ceases he should be able to enroll in Target's plan.

                              Hope this helps.
                              I discussed this with the HR manager at my work. Rightfully my son should have been off of my policy on his 18th birthday since he was no longer in school. He offered me cobra for 18 months, but the insurer denied it since my son has already received 21 month of coverage he should not have received.

                              So officially on paper, he has not had 'legitimate' coverage since April of 2008.

                              Comment

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