Medical Debt Advice

My husband has been on workers compensation for a year, we have a lot of medical debt? Is there any help available for us?

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Bill's Answer: Bills.com Resident Expert

Medical debt can accumulate quickly and become overwhelming real fast. You may want to consider the services offered by debt settlement firms. Rather than making monthly payments to your creditors, these programs negotiate lump sum settlements with your creditors, frequently reducing your debts by 50% to 60% of your principal balances. These programs usually take only 2-3 years to complete, so this is a good option for many people to rid themselves of debt in a relatively speedy manner. In many cases they can also reduce your monthly payment toward your debt. There is one major drawback to debt settlement programs, though — they will significantly damage your credit while in the program and for at least a year or two afterward. However, if you are currently unable to afford to pay your creditors, the hit to your credit may be worth the benefit of ridding yourself of credit card debt.

See the Bills.com resource debt settlement resource page to learn more, and find a settlement partner that's right for your needs.

Debt settlement, also called debt negotiation, is a form of debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are not paying your creditors. This means that a debt settlement solution of debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding chapter 7 bankruptcy. The trade-off here is a negative credit rating versus saving money.

In case it turns out that even a debt settlement program is not affordable to you, then bankruptcy might be the only other option to consider. I encourage you to speak with a bankruptcy attorney if you think that bankruptcy may be a possible solution to your debt problems. You should be able to find an attorney in your area willing to provide you with a free consultation. Speaking with an attorney will allow you to fully understand the bankruptcy process, providing you with the information needed to make an informed decision in regard to bankruptcy and the other debt relief options available to you. I also encourage you to visit the Bills.com bankruptcy information page.

I encourage you to explore Bills.com to read more about these and other options available to you.

I hope this information helps you Find. Learn. Save.

Good Luck,

Bill

Bills.com

Comments (2)


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Bills.com
April 01, 2009
Tim: You will have to present your case in court to learn what a judge decides. If you used the services of the hospital, then you are liable for their charges. Read more about medical bill collections in the Bills.com resource Resolve Medical Bills in Collection. Consult with an attorney in your state for specific information about presenting your case.
Tim .
April 01, 2009
Back in December I was in a hospital for four days and had no surgery.They told me my pancreas was getting bad and was charged around $18,000 for their services.I have no job and no insurance,AND NOW THEY ARE GOING TO TAKE ME TO COURT.Is there anything I can do to stop them.Thanks Tim
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