I am a single, no dependents lawyer who always spent where I wanted, when I wanted…and was doing ok with this since I earn $200,000 per year. Four years ago I was hospitalized with a sepsis infection post surgery — I was in ICU on a ventilator for weeks, in the hospital for four weeks and home on IV therapy and a wound vac for an additional four weeks. As I don’t have family or friends in the area, I found it easier to just not deal with things and get back to ‘normal’ quickly — including making the decision (?) to put outstanding balances from the healthcare costs on credit cards. I incurred $450,000 in healthcare bills — of which I was responsible for a total of about $75,000. I know now that it was a bad decision — but it stopped the bills from coming and allowed me to believe that everything was going to be ok. I felt responsible for the bills, and it never occurred to me to ask for any financial assistance until this year…when the APRs increased on the credit cards and I simply cannot keep up with the amounts due.
I own my house, an auto and a piece of property in another state (finally rented out this year). I have no dependents, and so my taxes deductions are extremely limited. My net income is $10,000 per month but my credit/loans/school loans total $8,000….without food and normal living expenses. Another challenge — I travel a lot for my employer, and typically run $10,000 in monthly travel expenses on a corporate American Express card (called ‘corporate’ but on my personal credit). I’ve always kept the reimbursement ‘clean’….I do not want to jeopardize my employment with any untoward use of the reimbursement funds!
I have to do something and finally sought Chapter 13 counseling. But asking for help – even in light of the inability to keep up with it all — is so very hard.
My employer requires the use of a corporate American Express card for business travel expenses incurred, which are then expensed and paid back through my paycheck. Is there any way to isolate this credit card from the Chapter 13 process? In other words, can you have a Chapter 13 only deal with certain credit cards rather than all of them?
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.I'm An Attorney And Struggling to Pay My Bills. - Pamela by Steve Rhode