Possible Bankruptcy

by Helen
(Largo, Fl)

I developed bipolar disorder and before i knew i even had it, i was over $80,000 in unsecured debt. My credit cards are only in my name - my husband is not even an authorized user. The only thing we own jointly is our home and it is my understanding that in Florida they could not take your home, only put a lien on it. My mother will be leaving her home to us upon her death so at that time her home will be our homestead home but we owe still $78,000 on our home so I doubt the debtors would be able to recoupe - I used to work in collections when the economy was better and usually if anything was at $20,000 or less, we considered it not worth taking a person to court for after doing an asset check.

I stopped paying my $20,000 Chase debt in November - I am in the middle of applying for ssd - I just stopped paying a smaller credit card of about 1300 last month - I have tried to keep up a couple of them with what i have left in savings but within two more months, I will not be able to do that either as I need money for my prescriptions and do not know if i will even be able to insurance with a pre-existing condition. How much money am I allowed to have in the bank for medical??

Should I file for personal bankruptcy and let them put lien on the house (to be honest, I cannot afford a bankruptcy lawyer) -- some of my old collector friends told me to just stop paying, send a cease and desist letter and that as the debt gets sold off, they will prob still be trying to collect after 4 yrs and then I do not have to pay it in state of Fl - will remain on my credit report but after 4 yrs, they are telling me they can no longer "legally collect" in Florida........is this true? I did look up state laws and under Fl it does say 4 yrs......

Comments for Possible Bankruptcy

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Feb 16, 2011
 Handling Large Debts
by: DebtCollectionAnswers.com

Helen,

We are so sorry to hear about what you have been through but we hope you are getting the medical treatment you need to get your life back on track.

The absolute very first thing we would encourage you to do is to set up a a free consultation with a bankruptcy attorney. You need to find out what your options are for dealing with these debts, and the bankruptcy attorney can advise you based on your individual situation.

Please don't let your friends give you advice, no matter how well-meaning they are. Unless they are bankruptcy attorneys they are not qualified to help you here. (Even we aren't going to specifically advise you! That's because you need the attorney to go over what you owe and what you own, and help you sort out what will happen if you do or don't file.)

Helen, we don't like to tell people not to pay their debts, but please do not spend the money you need for your medication on these bills. Get to an attorney asap. If you cannot afford to file, the attorney will help you come up with a game plan.

As for the waiting out these debts for four years, that's a bad idea too. We know for a fact that credit card issuers are suing for amounts smaller than $20000 and if they sue you and get a judgment, the four year statute of limitations does not apply. Plus, you do not need the stress of dodging creditors and collectors while you are trying to get well.

You may also want to check out Bipolar Lives.com where our friend Sarah shares her story. She, too, went broke because of her bipolar disorder, but she is doing very well now and should have some words of wisdom for you.

Hang in there, talk with an attorney and focus on getting well!

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