My wife and I are wanting to get a home equity loan. The one big problem we have is….?

The big issue we have is that we have bad credit due to myself getting injured and not being able to work for a few years. Also, right before my injury we purchased a house, had a baby that had a disability so medical bills added up, and we had to file chapter 13 about 4 years ago. We purchased our house in the year 2000. Our house is paid off as we more than doubled payments and put extra money we had at the time towards it while we were both working. Our bankruptcy was discharged over 3 years ago. We currently have no credit cards, no auto loans, and no 2nd mortgage or equity loan. The current debts we have are some medical bills with some in collection. Our credit scores are around 590 which I know is very low. We are wanting to get a equity loan or second mortgage to help pay for extensive dental work our son needs and also to get him extra care such as speech and occupational therapy that insurance does not cover. Our house is worth around $ 135,000 which is paid off. Is it possible to be able to get a home equity loan or second mortgage with such a horrible credit score? My wife is a teacher and I am a union boilermaker now so we do make a decent income. I’m also thinking but do not know for sure that a loan will help improve our credit. Since we have no loans or credit cards I don’t see how we could improve our credit which is one of our main goals. We just want to get back on our feet but has been difficult with all of the money we spend to help our son which is our number one priority. Also, if anyone knows of a certain loan company that would work with us that would be great. Making the monthly payment would not be a problem now that I’m back to work. We have been paying off the medical debt quite quickly now but just do not want anymore to go to collection. So I guess my question boils down to will it be difficult to get a home equity loan for around $ 20,000 or so with our house being paid off and no other debts with poor credit? Thank you so much for your help in this matter. I just think this could get us back on our feet and improve our credit. Any help is greatly appreciated!
Thank you all for the wonderful replies and links!

Love Presley..Do they accept borrowers with poor credit. In my question I did mention we have poor credit for reasons mentioned above. I have now been back to work for over a year as a union boilermaker and my wife is a teacher so we do have a steady decent income now. We just need a way to help get our medical debts paid and are hoping a loan will help improve our credit since we currently have no loans. My son also needs extensive dental work on top of speech and occupational therapy so are looking for some extra money for that and some to put in savings for emergencies.
Thank you all for being so kind and not judging. I am quite embarrassed for the situation we are in! But my son is number one in my life and will do anything to help him even if it means spending my last penny for that extra speech class! I’m not saying we are bad off, just need a way to get back on our feet and improve our credit and think a equity loan will do it
To Stan C,
Will my local bank be able to help someone with poor credit. It seems they are far and few between. The one thing that I feel will truly help even with a poor credit score is that our house is paid off in full. Estimated value I’m guessing is around $ 135,000 and we are thinking of trying to get around $ 25000. I have heard that if your house is paid in full the minimum you can borrow is $ 50,000. If so I guess I could just put half of that back towards the loan as long as there is no early payoff penalty. Could you please give me your thoughts getting a equity loan with poor credit with our house being paid off in full?
Thank you kindly Sir!

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