Medical debt bankruptcy is filing bankruptcy due to medical bills. It is more common than most might imagine. According to a recent USA Today article, medical debt is the number one cause of filing bankruptcy in America. Sacramento is no different. It is a significant factor in forcing many bankruptcies.
The filing of a medical debt bankruptcy is normally due to factors beyond the filer's control. Namely, the filer's health. Getting medical treatment is not an optional cost. If you get sick you need to see a doctor. It's that simple.
As often is the case with a medical debt bankruptcy, insurance is partially to blame. Even those with medical insurance are not always fully covered. High deductibles cannot always be afforded. And when they can't, something has to give. Usually it's the patient's finances.
If personal savings were larger and more commonplace, perhaps such medical costs could be weathered. But they're not. Savings in America are bleak, and that's putting it mildly. The referenced USA Today story brings home this point. 69% of Americans have less than $1,000.00 in savings. The is a big factor in medical debt bankruptcy filings.
Fortunately for people who are forced into a medical debt bankruptcy, bankruptcy is effective eliminating the medical debt. As we all know, medical care is expensive, really expensive. That is why medical insurance is so costly. It is also why deductibles can be unaffordable. Without astronomical deductibles, premiums would be astronomical. But bankruptcy can eliminate medical bills. Medical bills are unsecured debts that can be discharge, or eliminated, in a bankruptcy.
Particularly problematic for those in need of a medical debt bankruptcy are medical bill collection practices. You would think medical bill collectors would be accommodating given the nature of the debt. But they are not. Some of the most aggressive collection measures are made by medical bill collectors. It's an unfortunate fact. Bankruptcy, though, is a tool that can eliminate that debt. It's something many in Sacramento might not expect to do. But it an option, and a good one if you need it.
Bankruptcy is a way to eliminate debt when you cannot afford to pay it back. Bankruptcy is normally considered a last financial resort. And it should. But for those who can not pay their debts it is their only resort. It is also a way to eliminate not just your debt, but the financial stress that accompanies it.
Normally a bankruptcy plan is initiated with the filing of a Chapter 13 bankruptcy. The Chapter 13 plan will provide the terms of your debt repayment. Both businesses and individuals can file. It will list how much you will pay back. For how long you will repay your creditors. And it will include who you will repay. News of the bankruptcy of ‘American Idol’ producers’ debts were disclosed in a bankruptcy repayment plan.
Most forms of debt are dischargeable. But some are not. The most common forms of debt that are dischargeable include credit card debt, medical bills, car repossessions (or surrenders), foreclosures, past-due rent, social security and unemployment overpayment, and more. These are all types of dischargeable debt. They can all be eliminated through the filing of bankruptcy.
Ambulance bills, once considered covered by insurance, no longer were for many new medical insurance policies. An extra $1,500.00 for an unanticipated health emergency could soon result in a financial emergency. Medical bill relief for many became a must.
U.S. News and World Report recently published an article depicting the need of wage garnishment relief for former students’ salaries being garnished by the U.S. Department of Education. It was for student loan repayment. And it was for a school that no longer was. No education. No degree. Now no normal paycheck. Tough spot to say the least. If student loan default can result in garnishment by the government, what does that say about the vulnerability of the American employees’ pay? It says a lot.
Not everyone is eligible to file bankruptcy. But those who are can eliminate, or discharge, their debts thought a bankruptcy filing. Limitations exist that may prevent some from filing bankruptcy and receiving a bankruptcy discharge. These impediments to a bankruptcy discharge may be previous bankruptcy filings, excess income or too much property. If eligible, though, a bankruptcy discharge order will result from a bankruptcy filing and successful case completion.
Borrowers must be cautious, though. Especially with looming deadlines. Even if a mortgage modification can provide foreclosure relief, it must be completed before the foreclosure period expires. That’s 90 days. That’s not a lot of time to complete a mortgage modification. But it can be done. Outside companies and individuals promising to save your home can be another risk. As this news story points out, beware of scams and pitches by people trying to prey on your foreclosure peril.