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Keeping healthy credit during
an illness
Dear Debt Adviser,
I ran a small business for years and then had to
quit because of serious illness. I had three charge cards in my name
only. My medical bills are up in the thousands and in my name only.
I am trying to pay on the medical bills and the charge cards are getting
behind. My question is: Will all this affect my husband and his credit?
Will they hold my husband responsible? If I had to file bankruptcy,
would he be involved? Thank you so much for a reply. I am losing sleep
and so worried my MS and diabetes are much worse.
Rita
Dear Rita,
I am sorry to hear that you had to quit your business because
of your medical condition and that it is getting worse due to your
financial situation. Let's see what we can do to alleviate some
of your stress surrounding the money you owe so you can concentrate
on more important matters -- your health and your husband.
As far as your worries about your husband's credit
and involvement, his credit should not be negatively affected by
anything that is solely in your name. However, and this is a big
however, depending on the state in which you live, (Arizona, California,
Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin
are community property states), he may be equally responsible for
the debt. Bankruptcy laws also vary by state (if that is determined
to be the best solution), and depending on the laws in your state,
your husband may or may not be liable for any of the debts.
You can start to improve your situation right away
by following the advice below.
1. Your medical bills most likely do not accrue interest
or late fees if they are not paid immediately. So pay your credit
cards first and if you have any additional money, pay that toward
your medical bills. Be sure to pay more than the minimum on your
cards if you can.
2. Call your medical providers and let them know of
your financial problems and that you do intend to pay your bills.
Most doctors and hospitals will react favorably to a phone call
letting them know of the reason you have been slow in making payments.
3. If you are receiving harassing phone calls from
any of your credit card's collectors, let them know that you are
aware of your rights under the Fair
Debt Collection Practices Act.
4. I do not know how much you owe on your credit cards
or how many thousands of dollars to medical service providers, but
I do know that help is available to come up with a plan that works
for you. My recommendation is that you contact a credit counselor
about your situation. A qualified counselor will assess your situation
and make recommendations based on your specific circumstances.
When choosing a credit counselor, make sure the agency
has certified counselors who will spend at least 60 minutes with
you before making recommendations. Also, be wary of any agency that
requires a large upfront fee. To be on the safe side, check with
your local Better Business Bureau to be sure the agency does not
have numerous consumer complaints.
5. After you have made your appointment to speak with
a credit counselor and done everything else you can at the present
time, my final advice is to put your financial situation aside and
not let it worry you so. With your current illnesses, you owe it
to yourself to take as good of care of yourself as you are trying
to take care of your creditors!
Take care!
The Debt Adviser, Steve Bucci,
is the president of Consumer Credit Counseling Service of Southern
New England. Visit CCCS
for additional debt
advice or click
here to ask a debt question.
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