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Whatever you do, don't raid your 401k or retirement plans to pay these kinds of debts. I'd also take a very strong position that you're only going to pay up to
by ThrustVectoring 7y ago
Whatever you do, don't raid your 401k or retirement plans to pay these kinds of debts. I'd also take a very strong position that you're only going to pay up to your out of pocket maximum, and file a regulatory complaint over any balance billing or failure to cover services above that.
State regulations matter a hell of a lot here. I'm seriously considering moving to Texas because of debtor laws - any health incident can cause one to accumulate a large amount of "debt" in a hurry, and being able to tell creditors to pound sand gives a hell of a lot of peace of mind.
- arbuge 7y ago> I'm seriously considering moving to Texas because of debtor laws - any health incident can cause one to accumulate a large amount of "debt" in a hurry, and being able to tell creditors to pound sand gives a hell of a lot of peace of mind. Can you elaborate on this? What is so favorable about Texas law specifically as far as debtors are concerned?
- ThrustVectoring 7y agoWage garnishment isn't a thing for creditors like hospitals, unlimited IRA protection, homestead exemption in bankruptcy up to at least 10 acres (and case law includes the rented-out portion of duplexes through quadplexes), and annuities get exempted out too. Basically creditors can seize accounts and trash your credit rating, and that's about it in Texas.