My Medical Debt is Overwhelming Me! Is it Possible to Just Settle My Debt and Move On?

October 19, 2022 | By Steffens Law Accident Injury Lawyers
My Medical Debt is Overwhelming Me! Is it Possible to Just Settle My Debt and Move On?

Usually? No. It's not possible to settle your debt and move on when medical debt is overwhelming you. And even if you could, it likely wouldn’t be worth it. 

Medical creditors are the least likely to settle a debt with you, and if they do, it’s rarely less than 90% of the original amount. This is one of the many reasons why medical debt afflicts so many people in the United States. It’s easy to acquire medical debt, and once you have it, it’s hard to get rid of it. 

How to Eliminate Medical Debt

Thankfully, you still have some options if you’re struggling to pay your medical debt:

  1. Set up payments with your medical creditor.
    • Medical creditors might accept monthly payments for your medical debt, but they won’t reduce your total balance owed.  You’ll have to offer significant monthly payments because the creditor has leverage in this situation.  They know that if you don’t pay them off quickly, their collection agency can just file a lawsuit and garnish 15 to 25% of your paycheck. Unfortunately, if they sue you, you’ll also owe court costs, attorney fees, and interest. 
  2. Settle with a lump sum of money.
    • If you have significant savings or an inheritance, it may be worth it to pay 90% of the full medical debt in a lump sum. Medical creditors will rarely settle for less than 90%. Still, if this is an option for you, it could be worth it to settle your debt and move on.
  3. File for bankruptcy.
    • Finances are tight right now. Food, gas, and rent prices have skyrocketed while wages have remained the same. It would be scary to think about having 15-25% of your income garnished for a medical bill you didn’t expect. It may even be impossible! Thankfully, a bankruptcy will eliminate your medical debt. You won’t have creditors harassing you anymore, and you can return to focusing on paying your monthly bills and saving for emergencies.

[Related: How to Pay medical Debt Without Insurance]

Our Experienced Bankruptcy Lawyers in Lincoln Can Help

At Steffens Law Office, we know that bankruptcy is never an easy choice for anyone to make. You want to consider what’s right for your future, as well as your family’s future. Thankfully, we know that bankruptcy is often the best and most responsible choice for honest people who simply need a fresh start.

If you’re finding yourself drowning in medical debt, reach out to Steffens Law Office at (308) 872-8327 or through our contact form. We’re available to answer any of your questions and are looking forward to helping you live a freer financial future.