Bob wrote to me through the GetOutOfDebt.org website
He said, “Steve, I’m disabled and recently survived cancer and declared Bankruptcy on $3.8 million of Medical Debt that I had from 2016.
I’ve rebuilt my credit from that, but then I went into kidney failure, leading to dialysis and a transplant.
I’m on SSDI I and have tried to both consolidate debt and manage current credit card levels, but my costs are skyrocketing monthly.”
Bob said, “I applied for a loan through Simple Path Financial.
A personal loan is my preference to pay everyone off, but that was denied.
Now they’ve contacted me with a debt resolution program.
I’m tempted but concerned about the hit. To my credit, I have never been late on a payment ever, and I’m unsure of their tactics. What are your thoughts, Bob.”
Thank you so much for sending in your question. To me.
You’re facing a perilous situation. On one hand, you want to repay this debt, but on the other hand, if you’re living off Social Security Disability Income (SSDI), I would think that it’s very difficult for you to make ends meet.
I’m not sure that the math adds up at all for you.
And in fact, before leaping into paying off the debt, I would think about what your other options are. I mean, for example, you’ve already filed Bankruptcy once, and that was four years ago.
You could think about a second Bankruptcy, which is Chapter 13 or you could contact your organization like HELPS.
HELPS is a nonprofit law firm that helps represent seniors that are having problems and people on disabilities.
They run interference with creditors, and if you truly are judgment proof, you don’t have any assets to go after your income is solely based on Social Security disability income, then they have options for you.
And those options might be, in fact, just stopping payments, which you can’t afford. Your number one priority right now Bob is to make sure that you are safe fed, and you have heating or cooling to keep you in good health.
I wouldn’t launch into any other solution right now unless we understood what the future looked like for you.
If you’re going to continue to face medical problems, it doesn’t make any sense to start a repayment solution that is only going to repay part of your debt and not be a total solution to your situation.
As far as a personal loan goes, I would contact helps and their website is HelpsIsHere.org. See what they have to say.
You can also think about talking to your Bankruptcy attorney again if you wanted that kind of legal protection.
No matter what the path is, whether it’s attempting to repay this debt or taking out a loan, to try to borrow money to make payments, I don’t know how that mathematically makes sense for you.