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Elite Veteran
Posts: 617
 
| I have a good friend that recently told me hes got a lot of medical bills and a couple credit cards in collections. Hes a total of like 15,000 in debt and quit trying to pay it a couple years ago since he couldn't make the bills because hes also in college. He is still going to school, so he doesn't have a lot of time to work. He said in another 5 years (so 7 told) it wont be on his credit score anymore, which he feels is the best route since hes still in school. I would like to give advice, but i know nothing about that kind of stuff. What are some options? I thought consolidation... not sure how that works. Any input appreciated... i know nothing! lol Thanks!
Edited by cn1705 2014-02-04 10:49 PM
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 Elite Veteran
Posts: 1062
 
Location: Probably On the Road to the Next Barrel Race! | dont know where you are, but in TX I was told cc collectors drop you after 4years. |
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 A Barrel Of Monkeys
Posts: 12972
 
Location: Texas | Yep, I think it is 7 years. Tell him not to make a payment b/c the time starts over then. |
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 Dog Resuce Agent
Posts: 3459
Location: southeast Texas | Just because a CC company drops the debt, they do sell the debt to others who DO go after the debt and do report it as a failure to pay. I would tell the friend to talk with a subject matter expert. |
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 Tried and True
Posts: 21185
Location: Where I am happiest | Sorry but it doesnt just go away. They can file leins, get judgements, attach your taxes, and they will just keep rolling the debt over and attaching interest. His now $15,000 in debt can turn into $45,000 in debt pretty easily because of interest and collection fee's.
The only course to make it "Just go away" is to file bankruptcy. That will wipe away the debt, and his credit starts all new. |
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 Undercover Amish Mafia Member
Posts: 9992
Location: Kansas | ThreeCorners - 2014-02-05 7:19 AM
Sorry but it doesnt just go away. They can file leins, get judgements, attach your taxes, and they will just keep rolling the debt over and attaching interest. His now $15,000 in debt can turn into $45,000 in debt pretty easily because of interest and collection fee's.
The only course to make it "Just go away" is to file bankruptcy. That will wipe away the debt, and his credit starts all new.
agreed.I had a credit card for my root canal, cost me $1,825.00. When I applied for the credit card I didn't read the fine print. So when I put the cost of the dental work on the credit card, I was paying an outrageous amount if interest. Thankfully, my bank let me take a note out on the truck and I paid off the credit card to settle for a lower interest rate. I was paying 24.99% on the card, with the loan it's 7.89%. I think bankruptcy is his only option unfortunately |
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 Cute Little Imp
Posts: 2747
Location: N Texas | ThreeCorners - 2014-02-05 7:19 AM
Sorry but it doesnt just go away. They can file leins, get judgements, attach your taxes, and they will just keep rolling the debt over and attaching interest. His now $15,000 in debt can turn into $45,000 in debt pretty easily because of interest and collection fee's.
The only course to make it "Just go away" is to file bankruptcy. That will wipe away the debt, and his credit starts all new.
That's what I was thinking, that bankruptcy is the only way to "get rid of it" so to speak. Then your credit is screwed for the next seven years, till it drops off your credit...at least that's my understanding.
The RESPONSIBLE thing to do is pay what he can. He racked up the debt, he should pay it off. Sometimes collection agencies will settle with you and allow you to pay a lower lump sum just to get it taken care of. |
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Extreme Veteran
Posts: 464
| Many years ago, I worked in collections. Things have probably changed. More than likely his debt was purchased for pennies on the dollar. The collection agency when faced with bankruptcy will usually settle for what they have invested in the debt. Anything is better than nothing. |
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Elite Veteran
Posts: 667
| I work for the legal department for a medical collection agency. I do not know what kind of bills he has racked up but the bills don't just go away. If he is working they will try to verify his employement and then file suit. Judgments, ganishments, liens, ect.... sounds like he is in school which means that he probably does not have a full time job so it would be difficult for a collections agency to sue him. We are "picky" about our suits because we review every account and everyones credit before sending to our attorneys.
I would also agree with bankruptcy. It may seem like a horrible thing to do but ultimatly he needs to get this cleaned up no so he can start a fresh future when it falls off his credit. This will not just go away and like someone else said.. they will be sold..reported..interested tacked on.. and so on. I hate to say it because this is his debt but ignoring it isn't the answer. Not sure about which is which.. but Chapter 7 and Chapter 11 bankruptcies are options.. one is where you can consolidated debt and make monthly payments and the other is a full wipe out.
anyways good luck... and JMO :) |
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Miracle in the Making
Posts: 4013
| i disagree that is what is wrong now tell him he needs to pay 5.00 10.00 something towards it as
we who pay are bills are picking up the tab . that what wrong now you do something and if you can pay oh well
the consumer ends up with higher bill do deadbeats like him
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 Warmblood with Wings
Posts: 27846
Location: Florida.. | This kinda irks me.. people telling him it goes away after so many year.. NOW he did it.. why should he not have to pay it? just curoius as to why this is ok with others? if you run up debt.. then pay it even 10 bucks a month. I think the company will work with you.. and the fact hes in school.. which by the way costs money and so he cant work ?????
ALot of people go to school and get a job to pay off "HIS " debt and responsibility.. Wow.. so wrong. |
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 Chatty Kathy
Posts: 6635
Location: In Ky following Barrel Races & Walker hounds. | They can and will garnish his wages. My husband and I have about $10k in medical bills we are paying on. We have had car problems the last couple months and are having to get a new one and(stupidly) put off the hospital bills, even though we stayed in c,contact with them they still sent him a garnishment paper. Luckily we have been able to get it straightened out. Trust me, it won't just "go away". |
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 That's White "Man" to You
Posts: 5515
| This idea represents many of the proplems with America today. What happened to responsibility and self respect? |
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 Expert
Posts: 1295
Location: Chehalis, Washington | bankruptcy is his only option to whip away his debt and start fresh. Otherwise when he does finish school and start working again they WILL garnish his wages.. and the only way to stop the garnishment is again, bankruptcy. Which bankruptcy costs money as well. But its 10% or so of what he currenntly owes in debt. |
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Chatty Kathy
Posts: 6635
Location: In Ky following Barrel Races & Walker hounds. | jackismacki - 2014-02-05 4:16 PM
bankruptcy is his only option to whip away his debt and start fresh. Otherwise when he does finish school and start working again they WILL garnish his wages.. and the only way to stop the garnishment is again, bankruptcy. Which bankruptcy costs money as well. But its 10% or so of what he currenntly owes in debt.
No, bankruptcy is not the only way. He needs to call the collections agency or the law firm it is with and talk to them. |
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 Friendly horse swapper
Posts: 4122
Location: Buffalo, TX | I take credit apps for trailers nearly every day....I see a lot of buyers who think they have good credit because they are sure their old bills have disappeared after 7 or 10 years...but they don't.
The only way they really disappear is if you file chapter 7 bankruptcy....and actually, if they have good income, most people can still get a truck or trailer loan a few months after filing chapter 7 because their debt is wiped clean...I just got a family a loan for a nice LQ trailer 4 months after filing.....of course, you pay outrageous interest for many years to buy anything on credit again....
I would tell him to call his creditors and try to settle with them, but even then, it will appear on his credit history as a charge off and he'll pay higher interest rates when he goes to borrow on anything...and liens and judgements never go away if they aren't paid...although I can say that a lot of banks will be more lenient on medical bills if the others are current....
Vickie is right.....one way or another, we all pay for those who don't pay their debts....he's young, and if he pays a little at a time, he should be able to get it knocked out without the big hickey on his credit report....besides $15k is not what I would call an amount worth ruining your credit and filing bankruptcy for....if he really wanted to get out of debt, he would sell some stuff, get a part time job, or do something extra to get it paid off....in any case, I would steer him towards doing the right thing.... |
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 Elite Veteran
Posts: 805
Location: Montana | I went through this in 2010 with a medical/credit card debt. $17,000 was my total debt. I was making payments every month but was still sent to collections, went through a debt relief company. The best thing I did was go talk to a bankruptcy lawyer, I explained my situation and it was decided that I should file bankruptcy. Now four years later my credit score is 100 points higher and my husband and I were able to get pre approved for a home loan. Now if we could just find something that fits in our budget without costing us a ton to repair. Your friend should go talk to a bankruptcy lawyer most of them offer free consultation. |
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 Money Eating Baggage Owner
Posts: 9586
Location: Phoenix | I would call and explain his situation and try to pay something...$15k doesn't seem worth it to file bankruptcy...especially if he plans to buy anything in the next 7 years. Don't hospitals and medical agencies work with you if can't afford those bills? My boyfriend racked up some hefty medical bills for his appendix surgery. He was still in college and had no job. He was able to lower the amount due to his situation and make payments. |
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Extreme Veteran
Posts: 557
Location: Kansas and loving it | Meanwhile the hospital has to eat all of these costs. |
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| I am a process server. 85% of my serves right now are credit card debt. So then a few months after I'm noticing I have serves I'm doing for garnishment and liens companies are putting.
Make any payments that can be made. Stuff happens in life but a bill is still a responsibility. |
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