Loss Of Income A Primary Factor
Medical costs can take on many forms beyond the out of pocket costs for medicine and equipment not covered by government insurance or work benefit programs. Other demands on your cash flow might include moving expenses, household upgrades, and retirement home expenses.
The most common medical expense however is the loss of income while you are off work recovering from a medical condition.; Unless your employers health insurance tops up your wages, sick benefits from Employment Insurance will only cover a portion of your salary, and that may cause you to rely on credit to pay your bills to pay for living expenses as well as health costs while you are unable to work.
Almost as common is taking time off work to care for family members.; It is now very common for adult children to become caregivers for aging parents, taking time off work to drive them to doctors appointments and caring for them at home while they convalesce.;; The time off work is costly, but if you are also paying for gas and parking fees to take them to doctors appointments, and then buying medical supplies. Health care costs can quickly add up.
Can You File Bankruptcy On Funeral Expenses In Pa Or Nj
Dealing with the death of a loved one can be a traumatizing experience. This experience can be even more stressful if you are unable to pay the costs to bury your loved one. A funeral can cost a person an average of about $7,000, which can be difficult to pay if you did not expect it. If you or a family member are considering filing for bankruptcy after incurring the costs of a funeral, contact an experienced Philadelphia bankruptcy attorney today. The death of a loved one can be devastating for a family, and our firm is here for you in your time of need. Young, Marr & Associates is here to explain whether you can file bankruptcy for funeral expenses in Pennsylvania or New Jersey.
What Percentage Of Bankruptcies Are Medical
- Medical debt is both a direct and indirect cause of bankruptcy in a substantial number of cases.
We dont know how many bankruptcies are caused by medical debt. Medical debt bankruptcy numbers will fluctuate from year-to-year, influenced by factors like economic variables, political policy shifts, etc. During the debates over Obamacare, health care reform advocates suggested that more than half of all bankruptcies in the United States were caused by medical bills. Numerous studies have refuted that statistic. They argue instead that medical debt is a modest but rising component of debt in consumer bankruptcy. Regardless, there is little doubt that bankruptcy due to medical bills is a serious problem in the United States.
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Negotiating A Settlement Plan With Your Doctor
To start with this option, ensure you have settled all your insurance payments. After that, you can call your doctor to negotiate on how to settle your debt.; Working directly with your creditors may open up better possibilities like a repayment plan that is interest-free. Additionally, if it is an uninsured medical bill, your doctor may waive a certain percentage of the cost. Several hospitals routinely discount or waive debts for patients that are not insured.
Medical Bankruptcy: Does It Exist
Medical bankruptcy is not an official legal category of bankruptcy. That doesnt mean filing for bankruptcy cant help with your healthcare bills it just means you dont get to pick and choose which debts to include in your bankruptcy.
When you file for Chapter 7 or Chapter 13, medical debt is only one of the categories that may be involved in calculating your total obligations. The bankruptcy process can also affect outstanding credit card debt or your ability to stay in your home.
Thats why its crucial to know exactly what youre getting into when considering bankruptcy for medical debt. Learning about Chapter 7 and Chapter 13 will help clarify what you could stand to gain and lose during the process.
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How Do I Know If Bankruptcy Is The Best Option For Me
If youre wondering can medical bills be included in a bankruptcy, heres some good news: They can and youll enjoy a variety of other benefits when you file, too. But this isnt to say that filing for bankruptcy because of medical debt is for everyone.
How do you know if you are a good candidate? You should consider medical bankruptcy if:
- Medical debt isnt your only debt, even if other debts were affordable before your medical issues arose
- Youve tried working with medical creditors about reducing or eliminating your debts and its been unsuccessful
- Its impossible to create a payment arrangement directly with the medical care provider some are willing to take as little as $10 or $20 a month, but this isnt always the case
- Your medical debts have been reported to a credit bureau or creditors are threatening to do so something that sometimes happens less frequently with medical debt than other types of debts
- Medicaid or Medicare isnt providing you coverage
There are no guarantees with medical debt and everyones situation is different. In some cases, medical debt is easier to manage than other types of debt, which means you have more options. But this isnt always the case. The best thing to do is to speak to an attorney who can evaluate your situation. They will help you determine if bankruptcy is your best choice.
Chapter 7 And Chapter 13 Bankruptcy For Funeral Expenses
If you need to file for bankruptcy to discharge debt accumulated after a funeral, the most likely choices for your situation is Chapter 7 or Chapter 13 bankruptcy. As mentioned, Chapter 7 bankruptcy allows a debtor to discharge multiple forms of debt. This is possible because the property of the debtor will be sold in order to pay back their creditors. While your home cannot be sold to satisfy a debt in Chapter 7 bankruptcy, other valuables may have to be sold.
Many petitioners prefer to file for bankruptcy because of how relatively quickly the proceedings will conclude. Chapter 7 bankruptcy filings generally take about 90 days to resolve. Once the bankruptcy proceedings are complete, the debtor will then receive their debt discharge.
Chapter 13 bankruptcy allows a debtor to reorganize their debts to make them easier to pay. Specifically, the total amount of bills or the interest rate of bills will be decreased and consolidated into a single payment for the debtor to pay. Chapter 13 bankruptcies typically last five years. However, if a debtor is in dire financial straits, the court may approve a three-year repayment plan.
It is important to note that if your creditors believe that you can still afford to pay your bills, they may contest your petition for bankruptcy. This means that you should be sure that you have exhausted all other options before you choose to file for bankruptcy.
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Chapter 13 Bankruptcy And Medical Debt
Chapter 13 bankruptcy focuses on making debt repayment more manageable. After taking into account all of your debt, income and assets, a Chapter 13 bankruptcy establishes a court-mandated plan that helps you repay some or all of your debtincluding medical billsin affordable monthly installments that do not exceed 15% of your disposable income. Additional details:
- Chapter 13 creates a three- to five-year repayment plan. The plan is based on your debt and income levels. Some or all of your remaining debt may be discharged at the end of the repayment period, freeing you from further payments.
- Debt cannot exceed certain levels. To file for Chapter 13 bankruptcy, you must have no more than $394,725 in unsecured debt and no more than $1,184,200 in secured debt.
- You must have regular income. For Chapter 13 to work, you need the means to repay your loans, even at a reduced level.
- Chapter 13 may be better for homeowners. Chapter 13 halts the foreclosure process and requires your mortgage lender to let you include your home loan as part of your repayment plan.
- Resolution takes longer. While a Chapter 7 bankruptcy is over in four to six months after the proceedings end, Chapter 13 stretches out over years.
Can I File Bankruptcy On Medical Bills Alone
Many consumers find themselves drowning in medical debt and wonder can bankruptcy be filed for medicals bills without including other debt such as credit cards and other accounts.; You can file bankruptcy for your medical bills but it is unlikely youll be able to file without including other debts.
While bankruptcy may allow you to wipe away debt or restructure it with a payment plan, the process also allows for creditors to be treated fairly.; Its one thing for you to choose who gets paid when you pay bills each month and you may feel some obligations more worthy than others, but in bankruptcy court it may not seem fair that you want to pick and choose certain debts and creditors when they are all entitled to receive payment.
Upon filing for bankruptcy, all unsecured debt would be listed.; This includes medical bills, back taxes, credit card debt, personal loans and etc.; Since the debts previously mentioned fall under the same category they would be treated fairly by the court.
Something else to consider when filing bankruptcy is which chapter to file.; You may qualify to file one chapter over the other.; If you are unable to make payments or dont earn enough to pay on what is owed, Chapter 7 may be the best option.; Chapter 13 allows you to repay debt under a structured payment plan within a certain time period.; Discuss with a bankruptcy attorney about meeting necessary qualifications for filing.
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How Our Debt Relief Attorney Can Assist You
STOP A REPOSESSION
If you are facing an auto repossession, contact our Arizona Zero Down Bankruptcy attorney. Our attorneys help clients understand the bankruptcy process as a solution to debt relief needs. The legal staff at our law firm will ensure that your rights as a debtor are protected, and that you understand the debt relief process as it pertains to your specific financial debt situation.
SAVE YOUR HOME
Arizona Zero Down Bankruptcy attorneys can help you keep what is important to you and your family. If you are facing a foreclosure, contact our firm for assistance. Our lawyers give professional advice whether or not bankruptcy is the best option for your debt relief needs.
STOP A WAGE GARNISHMENT
A wage garnishment threatens your income, and affects your professional career. Arizona Zero Down Bankruptcy Attorneys will review your financial situation, then help you to understand the impact of a wage garnishment. We will review the benefits filing bankruptcy protection can provide, including stopping a wage garnishment.
ELIMINATE CREDIT CARD DEBT
Arizona Zero Down Bankruptcy represents clients across Arizona wipe out overwhelming unsecured debt such as credit card debt. If you are unable to pay more than the minimum payment on your credit card statement, or if you have debt that prevents you from making minimum monthly payments, our experienced debt relief legal team can help.
DEBT RELIEF AND YOUR PROPERTY
DEBT RELIEF FROM MEDICAL DEBT
Can My Medical Debt Be Paid Off With Bankruptcy
Do not beat yourself up thinking of how to make ends meet in the midst of mounting medical bills. You are not alone. Personal bankruptcy is largely driven by unexpected causes, like medical debt.
Monstrous medical bills are the biggest driver of personal bankruptcies in the US. In fact, an American Journal of Public Health study found 66.5% of all bankruptcies are related to medical issues. The cause of bankruptcy was expensive medical bills or absence from work. The study reviewed court filings for a random sample of 910 Americans who filed for bankruptcy between 2013 and 2016. They found that 530,000 families file for bankruptcy every year for medical issues or bills. The rising health care costs in the country contributes to one of the biggest expenses Americans have to pay. According to the study, Americans spent $3.4 trillion on medical care in 2017. In 2016, the average healthcare cost per person was $10,345. Experts predict that figure will increase to $14,944 in 2023.
Also according to the study, other reasons for personal bankruptcy include unaffordable mortgages or foreclosure , spending or living beyond ones means , providing help to friends or relatives , student loans , and divorce or separation .
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Filing For Chapter 7 Bankruptcy
If you file for Chapter 7 bankruptcy, you will be able to discharge your medical bills as well as many of your general unsecured debts. There are no limits on the amount of medical debt that can be discharged when filing for Chapter 7 bankruptcy, but in order to qualify your income must pass the Chapter 7 means test.
Would You Still File For Bankruptcy If The Patient Dies
One question you should be asking yourself is what happens if your loved one dies while undergoing treatment. Does the medical bill go away, or would the doctor or collection agency still pursue payment? Would you be required to seek medical relief in the case the bill has to be paid, and you cannot afford it?
The answer to this depends on the property the deceased had, the legal relationship between the creditor and the deceased, and what California State laws demand. However, the creditor may try to enforce certain laws.
The family of the deceased has a duty of paying any outstanding medical debt incurred while the deceased was still alive. If you lack the resources to clear the debt, you should consult a bankruptcy attorney to give guidance on whether filing a bankruptcy is an option.
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Can Medical Debt Be Discharged In Bankruptcy
Heres what you need to know about bankruptcy and medical costs:
- Unsecured debts are included in a bankruptcy, including hospital fees and other unpaid medical bills;
- While bankrupt all income you receive is subject to the surplus income rules, so if you are receiving sick benefits or a disability income, that is part of your income;
- Medical expenses that you pay directly can be used to reduce your income, so if you are paying for prescriptions or other expenses, those expenses will reduce your surplus income obligations, subject to certain conditions that your trustee will explain.
- If you are receiving collection calls for unpaid medical bills, bankruptcy provides an automatic stay of proceedings that stops creditor actions.
Medical Bills In Chapter 13
Unlike Chapter 7, Chapter 13 requires a debtor to create a payment plan. The payment plan should outline how the income the borrower receives will be used to pay medical bills. The allocation of payments must be feasible for both the borrower and creditor. Additionally, the plan must provide for secured claims to be paid value of the collateral it secures. However, exceptions can be made if the creditor agrees to accept a lower amount, or the debtor surrenders the property.; On the other hand, unsecured claims only receive as much as they would have received if the debtor filed for Chapter 7.
Most often, medical bills are unsecured debts. Therefore, the amount that will need to be paid depends on the specifics of each case. In some instances, a borrower will not have to pay anything at all towards medical bills in Chapter 13. However, in other cases, they will be required to pay a significant portion of the medical debt.
Is Bankruptcy The Best Option To Eliminate Your Medical Debt
Although the idea of getting rid of all your medical debt may be tempting, you need to consider carefully if filing for one is your best option at the moment.
Do you think youll most likely experience financial hardship in the future? If yes, then bankruptcy might not be a good solution. Take Chapter 7 bankruptcy for example. If you get a discharge, youll have to wait for eight years before you can get another. It means youll have to deal with all your debt if you face financial distress during that period.
If you dont have any property or only have income or assets that fall under exempted assets, creditors cannot garnish your wage or seize your belongings. You dont need to file for bankruptcy if thats the case.
If your financial hardship is temporary, check if you can wait out the statute of limitations in your state. Once it expires, creditors can no longer force you to pay the debt. However, if you choose this route, the outstanding debt will negatively affect your credit report.
Sawin & Shea Indianapolis Bankruptcy Attorneys
Filing for bankruptcy is not the end. Its the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process.
Please do not hesitate to call us today at 759-1483 or send an email for a free consultation. We are ready to help.
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Aug Can I File A Bankruptcy Only On My Medical Bills
Just the other day I was asked can I file a medical bankruptcy? The answer is no. There is no such thing. You can file bankruptcy on your medical bills. However your bankruptcy must include every bill and everyone that you owe. You can not just file on the medical bills. Generally the medical bills will be discharged and will go away.
Medical bills are often cited as one of the prime reason people end up filing bankruptcy.
Bankruptcy law requires that all of your bills and all of your creditors are listed.If you do not list all of your bills you may have problems with your bankruptcy. The failure to disclose assets or debts can prevent you from receiving your discharge.
The worst part about leaving out a bill is that you may still owe it after your bankruptcy. Now you have filed bankruptcy without getting all of the relief you deserve.