Settling Medical Debt Case Study: Healthy and Debt Free Again
The Jackson family is like many others. During a brief period of unemployment with no healthcare, Mr. Jackson fell victim to a serious ATV accident while in the desert. The nature of his injuries required a life flight helicopter transport to the nearest medical facility over 100 miles away. There, he received treatment for his injuries and made a full recovery. Unfortunately, he now faced medical bills he could not afford to pay. Although he gained employment with a great salary, most of his income went to support his family. Unable to pay the hospital and medical costs, collection letters started piling up with increased frequency and the Jacksons feared they would have to file bankruptcy in order to resolve their debts.
The bankruptcy attorney quickly found that due to their income, the Jacksons did not qualify for a Chapter 7 bankruptcy. He suggested that they speak with a debt settlement attorney in San Diego to determine whether the medical debt could be negotiated for less than the creditors claimed due, rather than pursuing a more costly Chapter 13 bankruptcy. After meeting with the debt settlement attorney, the Jacksons learned that debt settlement could help them.
The attorney immediately took over the stress and responsibility of dealing with the medical providers and collection agencies, stopping the collection letters and harassing phone calls. He negotiated down the total medical debt to less than half the amount claimed due on the medical expenses.
The debt settlement attorney worked with the Jacksons to develop a plan that would allow them to accumulate the funds necessary to settle their debt in a 24-month time frame. In the end, the Jacksons only had to pay back a fraction of the medical debt claimed due, including the fee due to the debt relief lawyer.
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