How Medical Debt Ruins Family Finances, Causes Foreclosure
By Bankruptcy Attorney on Feb 27, 2007 in General Bankruptcy Information, Mortgages
From North Carolina comes this heartbreaking story of the family of Lawrence Martin, age 8, who was mauled by a stray dog at his babysitter’s house. While Lawrence’s family did receive an insurance settlement for Lawrence’s severe injuries, that money is held in trust for him until he turns 18. In the meantime, Lawrence’s mom quit her job in order to take care of Lawrence, who’s now suffering from post traumatic stress disorder and recovering from his injuries. His father, a full-time trucker, doesn’t have medical insurance. Result: $12,000 in medical bills and a looming foreclosure.
And Congress thought working families were filing for bankruptcy because of profligate spending . . .
No one would seriously argue that this family did anything “wrong” and yet they’re in the position of having to ask the community for donations, through absolutely no fault of their own. It’s an all-too common story. But fortunately, there is help. Bankruptcy can help families in similar situations to the Martins by stopping the threat of foreclosure, giving them time to breathe and collect their wits (time and space that’s in short supply when you’re being hounded by debt collectors), and helping them get the fresh start they desperately need.
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