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  Dear
Dr. Don,
What type of bankruptcy forms are there for medical bankruptcy?
How long does it take to get started, and what do I need to file
medical bankruptcy? I have a judgment that has been entered against
me saying that they have a right to put a levy on any of the assets
I have to the extent they are not exempt.
-- Sherri
 Dear
Sherri,
Medical bankruptcy isn't a separate form of bankruptcy; it is just
a convenient way for people to explain what got them to the point
where they need to file for bankruptcy. In a recently released study
in Health
Affairs, Harvard University professors interviewed 1,771 Americans
in bankruptcy courts. Half said that illness or medical bills drove
them to bankruptcy. About 75 percent of the respondents who claimed
that their illness led to their filing for bankruptcy had had medical
insurance at the onset of their illness.
When a creditor wins a judgment against you, they become a judgment
creditor and can put a levy on your assets, to the extent that the
assets are not exempt from the levy.
The actual process will vary by state law, but in general the judgment
creditor can get a writ of execution from the court and submit it,
along with instructions for levy, to the Sheriff's office in the
county where the property is held.
You can find the bankruptcy court for your area on the U.S.
Courts' Web site. The Web site for your jurisdiction has forms
and information that you need to proceed with a bankruptcy filing.
My best advice is that you hire a bankruptcy attorney to help you
through this process. Before hiring an attorney, read the U.S. Courts'
publication, Bankruptcy
Basics, to get a better understanding of the process.
Dear
Dr. Don,
I need to file bankruptcy after a long disability and medical bills.
In addition to owing thousands on my own credit cards, I also owe
a family member thousands of dollars because they allowed me to
use their credit cards or loaned me money. How do I file bankruptcy
for my debt to others if the debt is not even in my name? Frantic
-- please help.
-- Candice Creditors
Dear
Candice,
The bankruptcy advice doesn't differ from how I replied to Sherrie
in the first letter. The wrinkle in your situation is the money
you owe the family member.
You will need to list the loans from the family member in your
listing of debts when you file bankruptcy. That listing should include
the purchases they made on your behalf with their credit cards.
That's where things get dicey.
If you used the card and signed for the purchase, then the vendor
shouldn't have accepted your signature. If you forged the family
member's signature, then the family member could have legal recourse
against you for those charges and these debts may be nondischargeable
by the bankruptcy court.
Taking a different tack, you can reaffirm debts with the approval
of the bankruptcy court and you could choose to reaffirm the debt
to the family member. Talk to a bankruptcy attorney and get professional
advice on this matter.
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