Skip to Content

Medical Debt: Negotiate or File for Bankruptcy?

Stethoscope on top of $50 and $100 dollar bills

Medical debt continues to be a huge problem in the US, along with other economic crises like student loans. The difference between those two debt issues is that the first can be much more easily discharged in bankruptcy, and it is cited as the number one reason in the US for filing for bankruptcy. 

Recent news shows that half of Americans are carrying medical debt. Not only that but recent data shows a 46 increase from 2020. 

“In a weird way, Covid didn’t have as big an impact on medical debt as you might think—but only because medical debt was such a huge problem before the pandemic,” said Don Silvestri, CEO of “If anything, Covid forced more people to consider the seriousness of the problem.” 

Still, the reality is that for the millions who became ill with the coronavirus, medical bills can be astronomical and could take time to resolve. If you have been served with a summons and complaint regarding a lawsuit over medical debt, speak with an experienced medical debt attorney from Fitzgerald & Campbell, APLC as soon as possible. While you may feel like bankruptcy is absolutely the only option, your attorney may want to explore negotiating with the creditor or debt collection agency. 

Even if the process has reached the point of a lawsuit, in many cases, the creditor is still open to negotiation. This allows them to close out an account, even if your attorney negotiates a deal for you to pay just pennies on the dollar in one lump sum. While this could be difficult to do, consider the benefits of having that burden out of the way. This applies to all your other debt too, even if you are not being sued over those accounts. 

In the end, the key is to take a proactive approach in dealing with your finances and your debt. It is easy to understand why procrastination is tempting; however, without any attention to the collection lawsuit, you could find yourself in trouble. Usually, there is 20 to 30 days allotted for the reply to the lawsuit. If you are not planning to negotiate, it is imperative to reply and outline a strong defense; otherwise, the judge could automatically grant a default judgment against you. 

Contact Fitzgerald & Campbell, APLC now. Let us review your case and discuss what would work best for you. We are here to help! Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Click here to schedule a free 30-minute consultation, or call us at (844) 431-3851, or email us at

Share To: