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Another easy solution, file for bankruptcy. No sane judge will kick a family out of their house over a medical bill. That would be counter productive to their r

Another easy solution, file for bankruptcy. No sane judge will kick a family out of their house over a medical bill. That would be counter productive to their recovery and cause undue hardship. If you don't see the utility in bankruptcy, just remember our President has used it several times over decades. Edit: it's also known as unsecured-debt, which means the worst thing anyone can try to do to you is ruin your credit score. This isn't worth dying over and America is designed to bear the cost.

ThrustVectoring 8y ago
Creditors can do more than ruin your credit score. It's state dependent, but they can also sue you to seize bank accounts, garnish your wages, etc. Fortunately, it's Texas, so wage garnishment is out, as is seizing your primary residence. So is seizure of retirement accounts. Really the practical amount of debt is what the creditor can force you to pay, which is capped at your liquid assets.
- megamindbrian2 8y ago
  True. Good points, so withdraw and store in mattress. Garnishment is still an issue.
  - ThrustVectoring 8y ago
    Not in Texas it isn't. Wage garnishment in Texas generally isn't a thing that creditors can do. Skip out on child support? Don't pay your taxes? Yeah, you can get your wages garnished. But a random creditor who convinces the court that you have a valid debt that you're obligated to pay? They can mess up your credit and seize bank or investment accounts, and that's about it.
chatmasta 8y ago
Bankruptcy really is the ultimate medical insurance. In fact, when so many people don't even have $2k in liquid assets, it almost makes more sense to skip paying actual medical insurance, and just declare bankruptcy in the event of massive medical bills. What that doesn't help with, though, is something like being diagnosed with a chronic condition where pills cost $800 a pop.
- megamindbrian2 8y ago
  I've read that it can only be done once every 7 years.
  - tluyben2 8y ago
    What happens when you do it more often? You have no money so...
    - megamindbrian2 8y ago
      I think it was just from the credit score side, maybe it takes that long for it to be discounted from your credit score.

ThrustVectoring 8y ago

Creditors can do more than ruin your credit score. It's state dependent, but they can also sue you to seize bank accounts, garnish your wages, etc. Fortunately, it's Texas, so wage garnishment is out, as is seizing your primary residence. So is seizure of retirement accounts. Really the practical amount of debt is what the creditor can force you to pay, which is capped at your liquid assets.

megamindbrian2 8y ago
True. Good points, so withdraw and store in mattress. Garnishment is still an issue.
- ThrustVectoring 8y ago
  Not in Texas it isn't. Wage garnishment in Texas generally isn't a thing that creditors can do. Skip out on child support? Don't pay your taxes? Yeah, you can get your wages garnished. But a random creditor who convinces the court that you have a valid debt that you're obligated to pay? They can mess up your credit and seize bank or investment accounts, and that's about it.

chatmasta 8y ago

Bankruptcy really is the ultimate medical insurance. In fact, when so many people don't even have $2k in liquid assets, it almost makes more sense to skip paying actual medical insurance, and just declare bankruptcy in the event of massive medical bills. What that doesn't help with, though, is something like being diagnosed with a chronic condition where pills cost $800 a pop.

megamindbrian2 8y ago
I've read that it can only be done once every 7 years.
- tluyben2 8y ago
  What happens when you do it more often? You have no money so...
  - megamindbrian2 8y ago
    I think it was just from the credit score side, maybe it takes that long for it to be discounted from your credit score.