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Medical Debt Continues to Force Americans into Bankruptcy

Coronavirus update on a cell phone that is held in front of a Bankruptcy Application Form

The topic of medical debt, like student loan debt, has continued to be at the forefront of discussions on the US economy. Both issues have the ability to force Americans into true bankruptcy—although student loans may not be as easily forgiven in court. Because the amounts accrued or lended may be so massive, it can be easy to fall behind and extremely difficult to catch up. This was already the case pre-COVID, with medical bills falling at the top of the list for reasons to file for bankruptcy, and the student loan crisis just continuing to increase. 

2020 brought devastation in terms of health and finance. Unfortunately, with one accompanying the other, this meant that millions falling ill with COVID were also left with steep bills to pay. It is important to consider, however, that many Americans already had other medical debt to pay off, other credit card debts—and other issues to deal with before the onset of COVID. 

If you are concerned about mounting medical debts, speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to explore your options. Preventative measures are best—as everyone knows—but sometimes that’s not possible. If you have been served with a summons and complaint, time is of the essence. Although the temptation to procrastinate may be great, if a lawsuit is pending, it’s critical that you respond to the lawsuit within 20 to 30 days and begin working on a defense. 

Without any attention to such legal action, a default judgment could be granted against you almost automatically, resulting in much worse consequences. This includes the possibility of wage garnishment (up to 25 percent of your disposable income in California), seizure of property to be sold off at public auction, and even loss of control over your financial accounts. 

In working with your attorney, you may even discover that negotiating is the better option, whether you are able to reorganize payments or pay off the total debt in one lump sum. Often this is possible to do at mere pennies on the dollar, and especially now when creditors and debt collection agencies are hoping to see as many unpaid debts satisfied as possible. 

If you are worried about a creditor lawsuit or judgment, contact us at Fitzgerald & Campbell, APLC. We can review your current situation and discuss your options with you, whether that means a negotiated settlement, fighting a judgmentfiling for bankruptcy, or more. Our attorneys have decades of experience representing clients in all types of consumer rights matters, and we are here to help you! Call us today for a free consultation at (844) 431-3851, or email us at

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