by smallpoxgirl » Tue 22 Jan 2008, 15:31:52
$this->bbcode_second_pass_quote('Prince', 'N')ot that it matters, but aren't you a medical doctor? You have one of the best-paying and most secure jobs in the nation. Why would anyone of that status have to file Ch. 7? Dumping your student loans?
OK...first off, student loans are not discharged in bankruptcy. Second off, while yes I am a medical doctor, I'm also pretty much straight out of residency. I was in school until 2001 with no income. From 2001 to 2005 I was in residency making some money, but not very much. After residency, I was unemployed for a while, and since then I've been working at starting up a practice. My net income for last year was about $20,000. Malpractice insurance premiums have a ramp up for the first couple of years that you're in practice. When my policy is mature in 4 years, it will have an annual premium of about $36,000. Mind you I've never been sued. So yeah, malpractice is a huge expense.
True I could probably be making $100,000 per year. Realistically that would require working for someone else, probably living in an urban area, and certainly it would require seeing 30 or more patients a day. I just really can't get excited about a day crammed full of 10-15 minute appointment slots. I'd much rather take 30-45 minutes with a patient, work for myself, and make less money.
So that's part of it. The other part is that I got hooked in by a couple of the credit card companies when I was an undergrad. At that time I was broke as crap. I was going to school full time and working 30+ hours a week at a minimum wage job. I could only get minimal financial aid because my parents had too much income, but they weren't kicking any of it my way. I got offers from a couple of companies for $5000 credit limit cards. Before you know it they were maxed and I spent another 7 years in school and 4 years in residency with barely enough money coming in to meet the minimum payments. About half way through med school, the financial aid office had a snafu. My student loans were 2 months late in arriving, and I missed a couple of credit card payments. By the time I finished residency, the balances were up to about $50,000 and 29% interest. I decided that because I'm starting a practice and my income is consequently below the state median, that I should take advantage of the opportunity to declare ch. 7 and cut free of the credit card debt. I don't feel like it was a bad decision at all. First off, I paid on those balances for 10 years. The credit card companies got way more money from me than I got from them. I made a stupid mistake as a kid in getting those cards, but I really feel like I paid for that mistake adequately. Secondly, I would never have been able to get this practice off the ground while trying to pay the $2000 a month to the credit card company.
One of my big life goals is to buy some land. Some people might think I've just shot that in the foot. Realistically, who would you rather loan money to? Someone with a fair FICO and no money or somebody with an old bankruptcy and $50,000 to put as a down payment? Maybe it's a wash for the lender, but as a borrower I'd sure rather be the person with $50,000 worth of equity than the one without.