Medical debt is still a big problem, but bankruptcy can help!

I just finished reading a portion of an NPR feature about the impact that medical debt can have on people from all walks of life. If you would like to explore this well-written (and heartbreaking) series, here is the link:

https://www.npr.org/sections/health-shots/2022/06/16/1104969627/medical-debt-upended-their-lives-heres-what-it-took-from-them?origin=NOTIFY

If you are facing insurmountable medical debts, bankruptcy might be your solution. One of the people profiled in this NPR article liquidated her retirement and still had to file bankruptcy. Unfortunately, she cannot get those retirement funds back.

Bear in mind that most retirement accounts are completely exempt in a bankruptcy. This means that a trustee cannot liquidate your 401(k) to pay your creditors. My experience has been that, if the IRS considers it exempt, then so does the Bankruptcy Court. Consider whether you should give up the savings that you need to support you in your golden years in exchange for paying off crippling medical debt. We will work to protect your retirement and help you put medical debt in the past.

If you are interested in discussing how bankruptcy can give you a fresh start, please contact my office to schedule a no-obligation first appointment. You can meet with me in my office or we can schedule an appointment by telephone or web meeting. Click here to schedule an appointment today!

Categories: Blog