Bankruptcy clients come in all shapes and sizes. One common scenario that drives people to bankruptcy is ill health. Here’s the story of one of our clients who used bankruptcy to free her from debts that were the result of an incurable disease.
Our client used to be an athlete. She had been an all-star swimmer who came close to competing in the Olympic Games.
But that was decades ago. Unfortunately, she battled rheumatoid arthritis for much of her adult life. This debilitating disease had left her unable to walk, and it was extremely difficult for her to hold down a job or even leave the house.
Because our client was no longer able to work, her only income came from Social Security Disability. She was making less than a third of what she had previously earned as a swimming coach and teacher.
Her growing debt coupled with her limited income left her with a tremendous amount of medical bills. In addition, she had more than $50,000 in credit card debt as a result of trying to pay bills with money that she didn’t have.
Technically her income was judgment proof because social security can’t be accessed by creditors to satisfy a debt. But she owned a home which meant a creditor could easily place a lien on her property. She also feared having her bank account levied by a creditor.
She quickly grew tired of the harassment. Creditors didn’t care that she couldn’t afford to pay them. They kept calling her and sending her letters anyway. No matter how much she pleaded with them to stop, the harassment continued.
In part 2, we will learn how our client used bankruptcy to stop the harassment and to get out from underneath her insurmountable debt.