Lost job + 14L debt after medical issues — thinking of settlement, need guidance

TL;DR:
Accident in 2023 → multiple surgeries → now bedridden for 9-12 months.
No job, ~₹13–14L unsecured debt.
Can arrange ~₹8–8.5L from savings + PF + selling assets.
Considering loan settlement due to no income. Need advice on whether this is the right move and how to handle this situation.

...structured via gpt...

I know posts like this come up a lot here, and I’ve read probably hundreds of them myself. Never thought I’d be writing one.

I’m 29, was working in tech until recently. In 2023 I had an accident, which turned into a long medical situation. Infection in ankle, multiple surgeries (5+), plastic surgery, and recently ankle fusion.

That basically means:

• No running, gym, trekking anymore
• Limited mobility permanently
• Recovery is long and uncertain

Last surgery was last week. I’m currently bedridden for the next 9-12 months, and full recovery will take around a year.

Since 2023, money has been going out continuously:

• MRIs, X-rays, meds, hospital bills
• Continuous medication for 3 years
• Things got worse in March 2025

I tried to manage work:

• Office was 3 days WFO, 2 days WFH
• I used to go for a couple of hours just to stay compliant

But in reality:

• 2 days office meant 5 days bed rest
• Some days I couldn’t even put my leg down

HR started flagging attendance even though work was fine, and mentally it became too much.

Recently, I had infected blood coming out of my ankle during basic activity, which honestly scared me. I resigned and went ahead with surgery.

Financial situation:

Total debt: ~₹13–14 lakh (all unsecured)

• Fibe
• MoneyView
• DMI Finance
• HDFC personal loan
• 2 credit cards (HDFC + Axis)

Latest surgery alone cost ~₹3 lakh.

What I can arrange:

• ~₹3 lakh in bank
• ~₹3.4 lakh PF (after 2 months unemployment)
• ~₹2 lakh from selling bike
• Some small amount from friends

Total: ~₹8–8.5 lakh

Current situation:

• No job
• No income for next 5–9 months realistically
• Bedridden
• Not sleeping properly due to stress

I haven’t told my family the full financial situation yet — planning to tonight.

What I’m thinking:

I’m considering loan settlement.

Right now:

• I don’t care much about CIBIL
• I need mental space to recover physically
• I won’t have income for months

I understand settlement has long-term consequences, but I’m thinking in terms of survival right now.

What I need advice on:

1. Should I go for full settlement, or try partial repayment + restructuring?
2. How bad is settlement in real life (not theory)?
3. Has anyone gone through something similar (medical + debt)?
4. Anything I’m missing or thinking wrong?

I know I made mistakes — lifestyle, not planning for worst case. I’m not blaming anything.

Just trying to get through this without making a decision that ruins the next few years.

Any real advice is appreciated.