One of the most disastrous events that can happen to someone during their life is a major medical condition. It takes away your ability to live your life, and it leaves you in a lot of pain. While your insurance may cover a large portion of all the medical costs associated with your condition, there will still be things you have to pay — and this leftover portion you’re stuck holding will likely be tremendously expensive.
While your medical bills climb higher, your condition may rob you of the chance of maintain work, or even working at all. Combined, these two factors — costly medical bills and a lack of income — can place someone with a serious medical condition in financial jeopardy.
Even if the condition is not as serious as what we’re describing, medical debt in general is a major contributor to people’s money problems. The crushing debt can leave people in a tight fiscal situation. So how do you get out of it?
Well, there’s no way to “get out of it” scot-free; but filing for personal bankruptcy can do wonders for someone ravaged by medical debt. It can clear part, or even all, of your medical debt. In exchange, some of your assets will be liquidated (however, some assets could be deemed “protected,” and thus shielded from the bankruptcy process).
To get the ball rolling, you want to take the necessary steps. For example, if collectors come after you, or if you know you are reaching a critical due date, don’t bury your head in the sand and ignore the matter. Contact a lawyer and start the bankruptcy process. From there, you and your attorney can double-check the collectors to make sure the debt they have attributed to your name is accurate.
Source: Los Angeles Times, “How to stop medical bills from going to a collection agency,” Lisa Zamosky, July 5, 2013