Advice and Thoughts?

[slotzero]

This forum is awesome and has been a great source of information and even comfort!

I'll try to be brief - I've had financial trouble since I lost my job in late 2008, and went several months with no income before finally landing a good job in 2009. I "floated" a lot of things for that next year trying to keep everything current or at least close, and was doing ok with that until my wife had a major stroke right at Christmas 2009.

So in 2010 we've had many hospital stays, doctor visits, etc etc. I'm happy to say at Thanksgiving time she's doing great! However in that time period I just could not keep up with credit cards, etc. So there is that mess. Some are seeking judgements now that they are with collections.

Now my insurance company is basically going to cover none of the hospital stuff from this year. My employer's benefits are good, but they are self-funded, meaning in this case they (and the plan administrator) have come up with some technicalities that lead them to believe they do not have to pay. So I'm covering all avenues on this but right now it looks like no-pay. So there is a new mess. Hospital's collections are getting pretty aggressive.

I had all the unsecured debt coming in, compounded with what looks like is going to be $150K+ in hospital stuff, and I'm overwhelmed. Naturally I'm thinking Chapter 7. I earn a good wage (less than 90k) so I'm concerned about means, but I do have a family of 5. I live in Ohio.

I'm furious with my employer. Being self-funded, they are the ones that are denying the hospital claims. The investigation I requested came to the same conclusion. I can hardly bring myself to come into work, not to mention the physical effects of the anger and stress.

But what happens if I quit? Does that jeopardize my Chapter 7 filing? Does filing for BK have any effect on future lawsuits I may seek against the employer?

Thanks in advance for the thoughts and advice.

[chicagoannie]

No matter your fury at your employer (justified) do not quit your job...unless you have a signed offer from another employer. Now is not the time to be job hunting. I have seen/read about others filing with higher income that what you are bringing in. Have you done a means test? You should be able to find one online - that will give you an idea about the numbers.

I'm glad your wife is doing ok. Health is far more important than wealth.

[catleg]

I would definitely hang onto the job. Things are grim, as you know.
Are they denying your claims as a pre-existing condition? Sounds like it. Do you have a certificate of continuing/credited coverage from the last employer (I forget what it's called).
Anyway, chapter 7 would make you and the employer happy.
Looks like Ohio family of 5 median is about 80k, but you should easily be able to show add'l medical costs to make a ch7 work.
Self funded plans suck, my employer's health and disability is like that. You have to prey the company doesn't go paws-up on you (c.f. Nortel in Canada f'd over its disability retirees).

[slotzero]

Thank you for your replies - with your thoughts and some calming down I'm keeping the job for now. I meet with the bk lawyer next week so we'll see what happens from here.

Thanks again.