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Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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Have bipolar disorder. Applied for SSI. I am stable at ...

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Have bipolar disorder. Applied for SSI. I am stable at present. EEOC case has been filed against previous employer for discrimination. Unsecured and hospital debt = $75,000. Should I file bankruptcy now, and take a chance on Trustee''s decisions, or wait until judgment and try to settle?
What Chapter bankruptcy are you contemplating? What state do you reside in? What assets do you own?
Customer: replied 9 years ago.
Chapter 7
2002 Toyota Tacoma, furniture, ~$500 antique glassware

This is my analysis of your choices. I listed the positive and negative features of each choice next to it.

File now for bankruptcy: Positive - 1. all unsecured debt is discharged
2. immediate relief from debt
Negative - 1. EEOC case becomes as an asset of the bankruptcy estate and any recovery would go to the Trustee to pay debts, court fees and Trustee fees.
2. You will still be obligated to assist the Trustee in pursuing your EEOC case.
3. If you incur more medical bills after filing, those bills will not be discharged in the bankruptcy.

Wait until Judgment: Positive- 1. judgment may exceed unsecured debt
2. if judgment does not exceed unsecured debt you could still negotiate with the creditors to pay a lesser amount
3. if the judgment is insufficient you can still file for bankruptcy and include any medical bills that you incur between now and filing.
Negative- 1. you have to wait to have your debts discharged or eliminated.

Although both choices have positive and negative attributes, it appears from the information you gave me that waiting until your EEOC case is resolved is the better option.

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The information provided is general in nature only and should not be construed as legal advice. By using this forum, you acknowledge that no attorney-client relationship has been created. You should always consult with a lawyer in your state
Ellen and 4 other Business Law Specialists are ready to help you
Customer: replied 9 years ago.
Much appreciated response. Thank you.
You are welcome. Good luck to you.