Should I pay off my medical debt or file bankruptcy?

I do not have any credit cards but have about 12k worth of medical debt, most of which is in collections - I did not have insurance and was not eligible for assistance. Now a new friend has offered to help me either file bankruptcy or pay off my medical debt if I negotiate with them to lower it. What should I do? I thought if I filed bankruptcy I would be able to recover faster. Any suggestions would be helpful. Thanks.

Should I pay off my medical debt or file bankruptcy?
Bankruptcy may be the immediate solution but that can prove unsafe in the long run. As bankruptcy stays on your credit report for 10 years so till then after that you would face difficulty in getting loan, purchasing or leasing anything as your credit score gets down due to filed for bankruptcy results in a 160-220 point deduction on their credit score and if a delinquent account is added to the individuals credit file, 70-120 points are subtracted. So after bankruptcy you have to build your credit from start.





Thus paying off debts would not be an immediate solution but it will be beneficial in long rung. If you are not able to manage your debts on your own there is the bills consolidation program provided by debt consolidation company in which all your bills are consolidated into one and you have to pay only one payment each monthly to the consolidation company which they in turn distribute among your creditors.





Here is the source of a debt consolidation company named http://ezconsolidation.com for you reference who provide bill consolidation plan
Reply:Obviously don't file for bankruptcy. Negotiate to pay it off. It's not as bad as you think even though it's in collections. Just explain that it's a medical bill to future creditors and they're not as critical vs. a credit card debt. Medical bill is not as bad because it's an emergency vs. credit card debt means you're irresponsible. It will be a long time before you recover from bankruptcy.
Reply:It depends on what you are planning to do in the future. If you file bankruptcy, it will hurt your credit for a couple of years. But if you negotiate with them obviously you will have to pay at least 6k back (assuming they all settle for 50%) and filing for bankruptcy will cost you anywhere from 1-3k so if you are not trying to buy a house or a car and dont care about your credit for a while then you might want to go the bankruptcy route. HTH
Reply:Do not file for bankruptcy, work with the collection agencies and try to get the amount reduced then work out a realistic payment plan or pay it off if you can.


The bankruptcy will plaque you for a long long time.


It will show up forever even though it's supposed to be wiped out after seven years.
Reply:With bankruptcy you may still have to pay of outstanding debt once you meet income thresholds.





If you are wanting to take out a loan in the future then forget bankruptcy.





It's a massive decision and not one to be entered into lightly.





Here is some information on bankruptcy:





http://www.thesolutionwebsite.com/bankru...








Good Luck
Reply:Well u sould talk to the debt settlement department of collection %26amp; they can settle down your debt to a nominal amount that u can pay because filling a bankruptcy means bad credit history %26amp; to improve it take 7 years atleast.I belive u must know if ur credit history is poor then u will not get any credit card,Mortgage or any Job.So, try to do a settlement.





ENJOY :-)
Reply:Your friend is a noble person you should be very grateful. I would l call The Suze Orman Show for advice.
Reply:first you should try debt settlement which will lower your debt in some cases up to 70% check out these site they will give you a free analysis on your debt.





http://creditservicesolutions.com/
Reply:Don't file for bankruptcy as the destruction to your credit causes more stress in the end. Remember, the hospital or doctor you owe money too doesn't want you to file for bankruptcy because then they get nothing so make sure you use all your resources first before doing. I almost did file for bankruptcy but decided to try all options before giving in. I used medicaldebthelp.com. I used their free services to get started and what they did was reduce my debt by 40% (did not damage my credit) and got me on a payment plan and even fended off the collection agencies. I know how you feel. I was stressed like that too. They have a lot of good articles and advice for negotiating but their free consultation was great. They can also help with the credit cards too. I called around for a while as well to different companies and I found they were the best in dealing with medical debt. They have great links to, to medicaid and children's free state health insurance links too. To make a long story short, my husband had mounting credit card debt and medical debt from Lyme Disease and other complications from it that led us to unmanageable debt. Give them a shot as you have nothing to lose. I am sure though there are other companies out there you can use but I had a good experience with them.
Reply:If you can negotiate and pay it off, obviously that is better for you in the long run. Bankruptcy will effect your ability to obtain credit in the future. Do you plan to buy a house, a car, etc.?





Bankruptcy


Bankruptcies: Advantages, Disadvantages and Different Types


by InvestorGuide Staff





Bankruptcy is a proceeding in a federal court in which an insolvent debtor's assets are liquidated and the debtor is relieved of further liability. This basically means that a person (or a corporation) was so far in debt that they felt a fresh start was their only option. More than a million Americans filed for bankruptcy last year, and the number continues to rise





There are three types of bankruptcies:





* "Chapter 7" - All assets are liquidated, except those that are exempt in your state (possibly a home, car, clothing, household appliances, life insurance, pension, and work-related tools). This property is sold by a court-appointed official or given to creditors.


* "Chapter 11" - Intended largely for businesses. Designed to allow a business to continue operating while repaying creditors through a court-approved plan.


* "Chapter 13" - If you have unsecured debts of less than $269,250 and secured debts of less than $871,551, you may be entitled to this type of bankruptcy protection, which allows you to keep certain property while you pay off your debts under the supervision of a court-appointed trustee.





All three types of bankruptcy may get rid of unsecured debts (those where creditors have no rights to specific property) and stop foreclosures, repossessions, garnishment of wages, utility service cancellations and activities of debt collectors against you. Chapter 7 and 13 bankruptcies provide exemptions that allow you to keep certain assets, though those exemption amounts vary greatly from state to state.





On the downside, it's not a "get out of debt free" card. Here are some of the disadvantages of declaring bankruptcy:





* You need to file the claim and pay a fee. You may also need to pay a bankruptcy lawyer, and it can be difficult to find a good one, since some try to maximize their profits by handling cases as quickly as possible instead of giving your bankruptcy the attention it deserves.


* Some debts cannot be eliminated by declaring bankruptcy, including taxes, student loans, alimony, child support, debts that resulted from fraud or willful injury and some property settlements, fines and penalties.


* Your bankruptcy will remain on your record for up to ten years. This may make it difficult or impossible to obtain a credit card or a loan.

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