Medical Bill Relief
Medical bill relief is a much needed commodity for many American consumers. This is especially so for surprise medical bills, as this Fortune Magazine article reports. The reason medical bills can cause such financial chaos is simple. Medical bill are expensive. Really expensive. And it is only getting worse.
Much of the need for medical bill relief is related to healthcare insurance changes. With the implementation of the Affordable Care Act (Obamacare), millions of Americans’ medical insurance plans changed. The changes typically involved higher costs and fees. With the increased costs came decreased coverage for many. This resulted in medical bills. Medical bills consumers thought were covered by their insurance. But they weren’t.
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.
Medical bills are rarely welcomed or invited. But collection efforts for medical bills can be some of the most aggressive. Collection companies often contribute to the problem facing many in need of medical bill relief. Expensive medical bills are a problem. A big one. Pressure to pay these bills can be bigger. Lawsuits often result. Perhaps even a bigger problem.
What, then, can be done? Paying them is an option. But not a good option for most. Not paying them can leave you in peril. But this is the only option for too many. Bankruptcy may be the only option. But it is a good one. Medical bills are unsecured debt. This means they can be discharged in a bankruptcy. Discharged debts are eliminated. You are legally relieved of these debt. This is a big benefit to those in need of medical bill relief. Bankruptcy may not be anticipated. But neither may be medical bills.
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.
Credit availability is, obviously, tied to debt. And credit availability is now back. Much of credit market dried up during the great recession in years past. Now credit is back. So is debt. And along with it the need for debt relief. There is no more comprehensive or complete recovery from debt than filing for bankruptcy. Again, that is why you are not alone filing bankruptcy.
Eliminating credit card debt is the ideal solution to excess credit card debt. But that is easier said than done. Trimming expenses, paying your debt down faster and tapping your savings are all options to decrease your debt. These are great ideas. But not if they won’t work for you. Maybe your expenses are already shaved to the bone. Perhaps you can’t pay your debt off any faster. And what if you have no savings? If so, credit card debt elimination in bankruptcy may be your best bet.
As has been pointed out, Trump’s businesses accumulated too much debt. With more debt than income to afford it, Trump and bankruptcy became a team for these businesses. Though these businesses filed for Chapter 11 Bankruptcy reorganization, the bankruptcy effect was the same as the most common consumer bankruptcies (Chapter 7 and 13) individuals file. Trump filed bankruptcy to limit and eliminate his business debt. His businesses simply couldn’t afford the debt. Bankruptcy law allowed the debt to be eliminated, lessened or refinanced through the bankruptcy court. Bankruptcy can do this for business debt. And bankruptcy can do this for personal debt. It is why businesses and individuals file for bankruptcy.
Qualifying for Chapter 7 bankruptcy requires the filer to pass the bankruptcy means test. This, then, is the primary bankruptcy means test meaning. To “pass” the bankruptcy means test, the filer must demonstrate eligibility to file for Chapter 7 bankruptcy. What this means is that an individual or couple filing for Chapter 7 bankruptcy must prove eligibility for a Chapter 7 filing. To be eligible for filing Chapter 7 bankruptcy, filers must show, essentially, their living expenses exceed their income. Put another way, they owe more in living expenses than income earned. This recent news article clarifies many of the bankruptcy means tests basics.
Often individuals view bankruptcy as a last resort. Typically it is. But bankruptcy is not about what to do with debt you can repay. It is about debt your can’t pay. It is a frustrating financial situation. Stress often accompanies the debt. The source of strife, though, is often not the debt itself, but the inability to do anything about it. This is the pragmatist premise behind Trump’s take on debt and bankruptcy.
Often consumers want to repay part of their debt. Though a bankruptcy discharge of credit card debt is part of what may prompt a bankruptcy, repayment of other debts can be a factor. Cars and mortgages are commonly the types of debts that are repaid through a bankruptcy. This is particularly so when consumers are behind, or in default, with these types of loans. A common form of a Chapter 13 bankruptcy reorganization is to repay a delinquent mortgage in full and discharge all your credit card debt.
Though bankruptcy is an initial negative on your credit after you file, discharging your debts at the conclusion of your bankruptcy is a big benefit. How big that benefit is to you depends on the amount of debt your discharged, or eliminated. By weighing the cost of the bankruptcy impact versus the discharged debt is the essential evaluation of whether to file for bankruptcy. If you have big debt and little income, bankruptcy may be a good option for you. If, though, your debt is not too great and your income enough to handle that debt, maybe bankruptcy is not your best bet. Every situation is different.