Medical Bills, Debts and Avoiding Bankruptcy

In accident and personal injury cases, your own insurance company may treat you unfairly and not pay for medical bills they are supposed to. You may even get threats of wage garnishment and lawsuits by creditors and collection agencies. These debts can be expensive, come during a time of crisis, and, worse of all, they exist only because of another person’s wrongdoing. But, having medical debt after an accident or personal injury is manageable.

You Have Options to Deal With Medical Bills

One common misconception—that only two options exist to deal with debts: pay the full amount or file bankruptcy—is to blame for making medical debts seem so daunting.
 
The first option, paying the full amount of the debt, may use up your ability to pay for basic needs like food, shelter and future medical treatment. And, those funds may be exempt from collections under state or federal law anyway. The second option, filing bankruptcy, likely significantly lowers your credit score, prevents you from getting a home mortgage loan for the next seven years, and leaves your creditors without repayment. Bankruptcy should be a last-ditch option.
 
Lessen Amount Due for Medical Bills in a Financial Crisis

Thankfully, there is a third option. You can negotiate a lower payment with your creditors. We call it “debt settlement.” Debt settlement is a win-win scenario. In debt settlement, you pay your creditors based on your legal rights and what you can afford, as a lump sum or monthly payment plan. Paying only what you can afford is especially important if you need future medical treatment after an accident or personal injury. Debt settlement also likely protects your credit score better than bankruptcy, while also repaying a significant amount to your creditors.
 
If you have debts—whether for medical bills, credit cards, auto loans, home mortgages or back taxes--explore your legal options with an attorney experienced with debt settlement and defending people against lawsuits by creditors and collection agencies. Having debt is a fact of life, and you do not have to go at it alone.

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