Expert: Kathleen Eads - 4/26/2006

Question
My 20 year old son was struck by lightning, and unfortunately, he had no insurance (nor do his dad & me).  He is still considered our responsibility since he is still in school.  He works 1 day/wk.  The hospital/physicians/labs/etc. are sending the bills in his name.  I understand the reason for them doing so, but he is unable to pay.  We have had financial problems with the IRS plus large medical bills also.  I do not want him to start his future with these bills hanging over him nor with bad credit because of the same.  We live in OK which is a garnishment state.  Any suggestions?

Answer
Because of the financial situation, your choices may be limited to either making payments to the medical providers or filing bankruptcy.  With his age and limited income, bankruptcy could be an option, as it will give him a clean slate and a chance to get back on his feet (without affecting your financial position, as well).  Though he is still in school, he is still over 18.  The courts would probably pursue him personally.  

If he has limited income, he would probably qualify for a Chapter 7 bankruptcy.  This would wipe the debts out completely, but it would also stay on his credit for 10 years.  A chapter 13 (reorganization) is a repayment plan, and would only stay on his credit for 7 years.  

I can't advise you on the best option, as that is clearly up to you and your son.  Make sure you keep open communications with the medical providers.  Avoiding them might escalate the matter and result in a judgment against him, prolonging the amount of time it would be a mark against the credit.  

Hope you get it worked out,
Kathleen Crabtree