Misty Didn’t Have Health Insurance And Got Sick. Now The Bills Are Rolling In.


“Dear Steve,

I have a large amount of medical bills coming in from when I didn’t have health insurance. On top of that I have about $2,000 in credit card debt and roughly $10,000 in student loans. I have another $2,000 from a loan I took out. I now have two judgements on my credit and they are starting to garnish my wages. I also have some back taxes I need to pay off as well. Money seems to be getting smaller and smaller and I don’t know how I am going to live if more people start to take more money that I don’t have. All together my debt totals $28,000.

My question for you is where do I go for help? I live in West Virginia and I am afraid to trust just anybody. Should I file bankruptcy and just start over or are there other ways out?


Dear Misty,

You would have had more options available if you had acted earlier, but obviously this has been going on for a while since it has resulted in wage garnishments. So let’s deal with this where it stands now.

The hole you’ve found yourself in is very deep and slippery. While there is a chance that you will be able to climb your way out, I think it is so difficult and unlikely that we need to look at other options.

Of most concern are the back taxes. It’s all fun and games until the taxman gets involved. Especially if it is the IRS that you owe. The tax people are the most powerful creditors and they come before anyone else.

Probably the most likely approach to changing this situation quickly is for you to talk to a local bankruptcy attorney, click here for bankruptcy information. Bankruptcy will most likely kill the wage garnishments, medical bills, loans and credit cards. It is unlikely that it will get rid of your tax bill.

Once you shed the debt you can’t pay then you can use that opportunity to regroup and start a new financial life. My advice would be for you to get some sort of health insurance policy to prevent this from happening in the future. There is no doubt that health insurance is expense but all it takes is one unexpected illness or accident to destroy your entire financial life. After bankruptcy you’ll also be able to make repayment arrangements you can afford to eliminate your tax bill.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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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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