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My Credit Was Hit by an Uninsured Motorist and Left With a Traumatic Injury

“Dear Steve,

Dear Steve,

I was in an automobile accident in 11/’05, hit by another driver who had stolen a car, therfore I was unable to sue anyone for the accident. I had no health insurance and my uninsured motorist policy was $100k, which of course the hospital negotiated a payment towards my $300,000 bill.

I was in an automobile accident in Nov. ’05, was comatose (with a traumatic brain injury) and eventually discharged in Feb. ’06.

I have not worked since then and my husband had to stay home with me through July ’10.

During this time we were unable to pay bills and received a notice to be in court from one of the credit card companies.

We did not show for the court date therefore they were awarded a judgemnet against us.

The amount of the debt is approximately $4,000. We also have judgements against us from the IRS and Social Secuity, both of which are on our credit reports.

Can the credit card company attach my husband’s wages?

They have offered us a settlement, I think for approximately $700 – $1000. Thank you for your assistance.


Dear Milesa,

Thank goodness you are doing better. That’s something we can be grateful for.

I suspect you still have quite a bit of medical debt outstanding if the insurance company only paid $100,000 of a $300,000 bill. Rather than just focus on this one debt I think we need to look at your situation in a broader context.

These types of unfortunate situations often lead to traumatic and unmanageable debt. It is probably unreasonable to assume you can pay your way out of this dark pit of debt.

While some people claim everyone should be responsible for repaying every penny they owe, bankruptcy is a right afforded to everyone under the law. Bankruptcy serves a useful economic purpose and allows people in impossible situations to get a legal fresh start and second chance. It is a right afforded to you under the U.S. Constitution.

paramedic-squareA chapter 7 bankruptcy would eliminate your debt in about 90 days and can even discharge old taxes dues and Social Security overpayments.

Given the larger scope of your situation I think it would make more sense for you to click here to find a local bankruptcy attorney. Meet with the attorney and don’t feel pressured to make a decision. You and your husband should contemplate what you learned and if you agree, then take action to get your life back and move on.

We need to get your financial life out of the coma it is in.

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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