Shot, Fired, and Buried in Debt: Is There Still a Path Forward?

Speaker A00:00:37

You were hurt, you were hospitalized. You're trying to recover. And while you're still fighting to heal, life kept taking things away.You lost your job, you lost your home, your car was repossessed, and the bills kept coming. That debt kept piling up, and now you're working again, but the income is stretched and that debt feels overwhelming.And you're wondering if one wrong move could make everything worse. Well, if that's you, I want you to know something before we go any further today. You're not the sum of what happened to you.You're not your credit score. You're not that debt balance, and you're not beyond repair. What you're carrying is real. That financial pressure you're feeling is real.That fear is real. That exhaustion is real as well.So today we're talking about where to start when everything feels urgent, how to protect your income, what to do when collections may have gotten it wrong, and how to take the next step without letting fear make the decisions. That's what we're going to break down on today's show. Hello and welcome to Financially Confident. Christian. I'm so glad you chose to join me today.Today's question is heavier than a typical debt question. We get a lot of those on the show, and today isn't just about money. It's about trauma. It's about loss. And, yes, it's about rebuilding.So we don't rush past the hard stuff to get to the math. Today we're going to talk about what to handle first, what to document, where legal help matters and how to move forward one step at a time.Well, let's get right to today's listener question, and this one is a doozy. Listener wrote this. Hi, Ralph. I'm not sure if you even take emails like this, but I'm in a pretty dark place.And honestly, I don't know where to turn. Back in January, I was shot. Yes, he said shot. I spent weeks in the hospital, and while I was there recovering, my employer fired me.I had to fight through litigation just to get my unemployment settlement. During all that time, I lost my home, my car got repossessed, and I couldn't make my credit card payments. Now I've got medical debt around $60,000.I've got auto debt about $10,000. My credit cards are maxed out at about 7,000. My credit score sitting between 490 and 540, depending upon which one you look at.Now I'm employed again and I've got a car now, but I'm pretty much Maxed out on my income. And, Ralph, I don't have any family or friends who can help me financially. I found out the hospital wrongly sent my debt to collections.So, Ralph, I'm wondering if that's something I can use. But honestly, I'm lost on even where to start. Do I go after the company that fired me while I was hospitalized?How do I stop myself from getting garnished? Is there a path through this that doesn't feel impossible? I'd really appreciate any guidance you can offer. Thank you.You know, when I read that email that we got, first of all, I sort of had to read it a couple of times. Like, did this guy just tell me he got shot? Yeah, he got shot. Now, I don't know the circumstances of why he got shot.I'm just going to assume it wasn't anything he caused. But the things that happened after that were just amazing. But my big takeaway here is everything right now is feeling urgent for this guy.But what I've learned over 30 years in practice is you can't attack everything at once. So we've got to think in terms of. Just like the hospital did. I can imagine.On the day that you were shot, the first thing the hospital did is they had to stabilize you. We're going to do the same thing today. We're going to stabilize you first.We're going to protect your income, and then we're going to challenge what's wrong, and we're going to get the right professional help before creditors force the timeline. So let's break this down one step at a time. The first thing I want you to understand is we've got to separate responsibility from shame.You were shot. Like I said, I'm assuming this had nothing to do that you caused.You were hospitalized, you lost your job while you were trying to recover, and then that financial fallout started. Those are not your issues that you didn't cause. That situation, that trickle down thing, wasn't something you caused.Now, that debt may have been yours to deal with before, it's certainly yours to deal with now. But this entire situation isn't your fault. So first thing I want to encourage you to do is take away that shame.Because what I have found is shame makes people freeze. You just stop doing. You avoid making those calls, you ignore those letters. And unfortunately, shame makes you delay decisions.I'm going to tell you today I think the best path forward is to replace shame with a plan. You don't need shame to make progress, but you need truth to make a plan. So let's talk about how to get to that truth.But we're going to start with this. You've got to stabilize the basics before you negotiate the past. When everything feels urgent. I mentioned this a few minutes ago.When everything feels like it's got to get handled today, it's really tempting to chase whatever bill is screaming the loudest. And collectors know that.They know if they're the ones calling all the time, if they're the ones screaming the loudest, that's the one you're going to get to. But I've got to be honest with you, that's usually a mistake. Here's what I want you to start with. Start with the things that keep you functioning.Housing is a number one. That needs to be the ultimate thing. Utilities, that's number two. You've got to feed yourself.So food, transportation, and don't forget about insurance. These are the type of expenses that allow you to keep working and earning income, which is what you absolutely need to do right now.As we start to stabilize, as we start to triage, those are the things you got to focus on. The old debts, the collections. And listen, even those medical bills, they matter, but none of them matter more than getting to work tomorrow.So we got to start thinking in terms of a budget. Now, a lot of people, when you say budget, they think, oh, Ralph, you're putting me into bondage. It's not at all where I'm going with this.Budgeting is not bondage. It's a tool that helps you breathe. Now, let's get to that collections mistake that you mentioned. Here's the thing I'm going to encourage you to do.Treat that hospital's mistake as a documentation issue. Maybe someone just made an honest mistake. Don't let it frustrate you. What I would encourage you to do is pull all three of your credit reports.You can do that@annualcreditreport.com we'll put a link to that in the show notes. This is something that I talk about even outside of somebody getting shot. You should pull these at least once a year and take a look at those.But when you do that, write down the creditor's name that came up here, the balance, the date that was reported, the account number, and. And which bureau is reporting it. Once you do that, then I would get on the phone, call the hospital billing office and ask them about the situation.Ask them for a written confirmation that the debt was sent to the collections in error. I got a feeling you already know that, but I will get that in writing.And then as you're looking at that credit report dispute, any other items that are showing up there, and send a written dispute to the collection agency. We've talked about that on the show before.And if they refuse to correct it, that's when you're going to enlist the help of a consumer rights attorney. That's somebody that can take a look at the Fair Credit Reporting act or the Fair Debt Collection Practices Act.But my encouragement for you right now is just take one why step this week instead of another week of avoidance. Now let's pivot a little bit. We got to talk about the legal risks, you addressing those before they control the timeline.So let's get into each of the specifics of that specific big word to use today. But for the firing number, one thing I would do is speak with an employment attorney.They're going to be able to help you understand what your rights are. If you were fired while being hospitalized, that they're being shot. That's serious enough for an attorney to take a look at that and review that.But before you get on the phone with that attorney or sit down, gather all your information.Write down the shooting date, the hospitalization dates and any notices you got from the employer, any termination letters, any, any HR messages you were sent, any unemployment paperwork, and any settlement records. If they offered you something, treat this employment issue as a parallel track.It might help you in the long run, but your current budget can't depend on some future settlement. Now, you mentioned you were worried about garnishment. Most creditors have got to sue you first. They've got to win that judgment.And then they follow state rules before taking on your wages. So open every single letter you get. If you get a letter from court, respond to it. Make sure you're paying attention to those deadlines.This is where you can solicit the advice of legal aid or a consumer attorney.Or maybe you've gotten to the point where you actually have to talk to a bankruptcy attorney about some issues there or some state garnishment protections. Those things are super important. And listen, a consultation isn't a commitment to file.It's a way to lower fear with real information so you can make a better decision. The goal here is to act before panic becomes the plan. So here's my big takeaway. Create a 30 day starting plan for yourself.I'm going to lay this out week by week. So here's what I'm encouraging you to do on week one. Pull all three of those credit reports and make one complete debt list.Week Two, this is the time to contact a hospital billing company, request written proof of the collections error and, and ask for financial assistance. A lot of people don't understand this. Most hospitals, most medical companies will offer you a payment plan. They'll offer you some help along this.Don't feel like you got this bill. That's, I can only imagine the bill that you got for being shot. Worry about getting your health back on course.You can worry about those collections later. Here's what I would do on work three. On week three, schedule two consultations.One for a consumer rights bankruptcy attorney and, and one with that employment attorney. Again, don't put all your eggs in that basket. Yes, it sounds like you've got a claim, but I wouldn't spend a lot of time worrying about that.Week four, start to build that bare bones budget like we talked about, around housing, around food, utilities, transportation and keeping that job stable. And then I'm going to encourage you to do one more thing because it's all about documentation. Set a folder up, put it on your desk.In every bill, every letter, every dispute, every medical statement, every court notice and every attorney note goes in there. Listen, friend, the goal isn't to fix everything in 30 days. It's to move from fog to a map. Because right now you're in this fog.You don't have to fix your whole life today. You need the next faithful step. Because here's the thing I want to tell you my big overarching thing today.You're not beyond repair just because the numbers are ugly right now. So again, your win today. Pull all three credit reports from annualcreditreport.com and make a debt list. And this goes for anybody.You don't have to get shot to do this. Pull that credit report today. Don't negotiate everything today. Don't call every creditor today. Just make the list. Put that information together.This one list will turn fear into something you can actually work with. Now, I had to dig deep to get our Bible verse today, but it comes from the book of Psalms, chapter 34, verse, verse 18.And this one really reaffirms what we're talking about today. The Lord is close to the brokenhearted and saves those who are crushed in spirit. And friend, you're not just dealing with debt.You're dealing with trauma. You're dealing with loss. You mentioned that you're on your own. You're dealing with fear.And you've got this fear and this weight of rebuilding without much support. But this verse in scripture, it doesn't shame the brokenhearted. It tells us that God is close.And sometimes the very first step towards financial recovery is believing that you're not alone in this while you take that first step. But I want to sit for a moment with the question you asked near the end because I really want to trumpet this.You said, is there a path through this that doesn't feel impossible? And that's more than a financial question. That's what a person asks when they've been hit so hard that even hope feels expensive.And I could just throw a Bible verse at you, but you've already got this trauma wound. And I can try to pretend like this is going to make the pain disappear. It's not. But our faith doesn't pretend.This isn't heavy faith doesn't mean you have to carry it alone. God, it's said in the scripture, is close to the brokenhearted. And he's right there with you as rebuild. And he's with you in that exhaustion.He's with you in that embarrassment. And when you're trying to make these wise decisions with a bruised heart and a thin wallet.Now, the next step we talked about today might not be exciting, but it might be making that one phone call.It might be opening that letter, asking that one attorney one question, pulling that credit report, or maybe just praying one honest prayer that sounds more like, lord, help me. It's okay to say that sometimes. It doesn't have to be polished. You may not see the whole path today.You've been through trauma, my friend, but you can ask for God for enough light for the next step. And how about we pray together right now? Heavenly Father, I lift up this listener today. You know what happened to him. Lord, you see the fear.You see that hospital stay, man, you were right there with him the whole time. You felt that job loss with him. You saw him lose his home. You saw that car get repossessed and that debt that followed.So, Lord, right now we just want to praise you for bringing him back to a place of health. But Lord, give him steady wisdom to know what to handle first and what can wait.Lord, help him to protect his income and that transportation and his housing. Lord, guide him to the right attorney, put the right people in front of him, those right counselors.And Lord, help him to correct what was handled wrongly.But more than any of those things, Lord, help them to have courage, to open that mail, to make that call, ask those questions and take those next steps without drowning in shame. And Lord, where there has been injustice, bring truth. Where there has been confusion Lord, bring order to this.And when there has been fear, bring peace. And remind all of us, Lord, that we're not what our credit score tells us. We're not our debts. We're not the worst season of our life. He's your child.And as the scripture said, Lord, you're close to the brokenhearted. And we ask this in Jesus name. Amen, friend. If your situation feels too messy to talk about, messy doesn't mean it's hopeless.And you don't have to fix everything before you ask for help. So again, stabilize first. Protect that income dispute what's wrong and and get legal guidance before fear makes the decision for you.Maybe you're going through a trauma just like this. Maybe it wasn't getting shot, but you're going through a tough time.Maybe a divorce, maybe a death in the family, or maybe you're just struggling financially. I would love to help you. You can reach me by going to financiallyconfidentchristian.com/questionWe'll put that link in the show notes, but again, that's financiallyconfidentchristian.com/question. I just want to thank you so much for joining me today. I want to encourage you to stay financially savvy.May God bless you and you have a truly great day. We rise.