Olga Zlotnik

Health Insurance Coverage

Health Insurance Coverage
Navigating the Bankruptcy Tide:
Tips to Help You Stay Dry and Steer Clear of Bankruptcy

When people are being hounded by creditors and going through tough financial times, they come to me for help.  In listening to, advocating for, and helping my clients, I have had the privilege of learning some financial do’s and don’ts.   The truth is that financial trouble can happen to anyone.  For example, job loss, which often times means that there is no longer enough money to pay the bills, is one common reason why someone you know may be forced to file for bankruptcy.  The loss of a job usually is the type of financial hardship in life that is out of our control.  But, some financial issues can be avoided with help and guidance.  In prior issues, I introduced you to the first six tips to staying out of bankruptcy. Here are the next two tips:

Tip 7: Make Sure Your Health Insurance Covers You.

In order to avoid getting stuck with a bunch of huge medical bills that you can’t ever pay off, get health insurance and make sure that your insurance adequately covers you.  Also, look into medical gap insurance to cover the cost of out-of-pocket expenses.  What if you can’t afford health insurance?  Well, can you really afford to be without it in the event a major medical crisis happens to you?  Most of us insure ourselves in the event of a car accident (we are required to by law), house fire, or accidental death, so why wouldn’t we insure ourselves in the event of a medical emergency?

Tip 8: Don’t Lend Money Unless You Can Afford to Lose the Money.

When you lend someone money, there is a chance that all or some of the money will not be repaid to you.   You may be thinking, “but can’t I just sue the borrower if the borrower defaults?” The answer is that you can always sue to get paid but there is no guarantee that you will win and even if you win, there is no guarantee that you will ever be able to collect on the money.   Also, if the borrower files for bankruptcy, then you will probably never see a penny, unless you have a basis for bringing a lawsuit within the bankruptcy (such as for fraudulent representations) and you win the lawsuit, or get the debtor to agree to pay you a settlement, or the debtor’s bankruptcy is an “asset” case, which are all very unlikely.  That’s why, before lending someone money, ask yourself whether you can survive without ever seeing the money again?  If the answer to this question is no, then do not lend.

Stay tuned for next month’s issue on additional tips to help keep you dry and out of bankruptcy.  For more information on bankruptcy, debt, and litigation-related issues, please visit www.olgazlotniklaw.com


Please note that the information provided is for informational purposes only and does not constitute, and should not be considered legal advice. Transmission of the information contained here and receipt by the reader is not intended to create and should not be construed as creating an attorney-client relationship. The only way to create an attorney-client relationship with us is through a written and signed agreement with us.  The bankruptcy law services described herein are with respect to bankruptcy relief under the Bankruptcy Code. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.