Friday, November 30, 2012

Chapter 7: Protection From Bankruptcy Medical Bills

Medical bills are the most common reason for people seeking bankruptcy. However, seeking protection from Bankruptcy medical bills is possible because hospital bills are considered as unsecured debt. A Chapter 7 bankruptcy is perfect in the sense that it is the quickest and the debtor can walk away with just a few nicks and cuts, particularly some properties that are not covered by exemption and your overall credit score, which may impact your ability to secure loans in the future.

Bankruptcy medical bills could be the best thing that you can do to restart your financial future with a clean slate. There's a certain stigma to declaring bankruptcy but it's actually a very personal matter. Your privacy is protected and you can still move forward with your life as opposed to the misconception that you walk away only with your clothes on. In some cases, you can even keep your car under bankruptcy.

What happens is the court designates a trustee that will inventory your properties, determine which are exempted and sell those which are not. The money raised from the sale will be used to pay your creditors. To know which properties are exempted from Chapter 7 bankruptcy, talk to a lawyer proficient with bankruptcy laws. Some examples of properties covered by exemptions are: your house, tools or equipment you use in your profession, social security, disability or unemployment benefits, or life insurance. There could be some additional exemptions depending on state laws.

After filing bankruptcy, the court orders the creditors to stay away. But the law also allows creditors to prove that they are justified in collecting your debt, the burden of proof however swings to their side. Bankruptcy however will not wipe out all your debts. Any lien you owe prior to the medical emergency stays on records and you are required to settle it in due time.

Filing for bankruptcy medical bills will not automatically exempt you from paying the IRS. There are conditions before the federal tax agency will let you off the hook. Again, consult a bankruptcy lawyer to explain to you all the gradations of law in relation to Chapter 7 bankruptcy medical bills. You might be able to ward off your creditors but you can't get away from the IRS. Federal agents can still swoop in even after bankruptcy and seize your properties but only if they decide that you are trying to run away from your responsibility as a taxpayer.

Thursday, November 22, 2012

Consolidating Unpaid Medical Bills

Unpaid medical bills can be a drag. Most of the time, people don't save up for a medical emergency. Part of the reason for this is the thought that bad things only happen to other people. That sense of invulnerability has driven many into bankruptcy because of unpaid medical bills. If you count yourself among these people, don't worry. There are options. Consolidating medical bills is a great place to start.

Consolidation can have its distinct disadvantages and advantages, just like any option. However, it's important that you weigh the pros and cons of consolidation with other alternatives before you proceed. Generally speaking, you should consider consolidating your unpaid bills if you have exhausted all possibilities for charitable funding, such as asking the hospital for discounts, applying for medical assistance programs from the state, or borrowing money from a rich relative at little or no interest.

There are two methods to consolidate your unpaid bills:

First is through a loan from a bank or financing institution. You must remember that this type of loan is secured so you may need to offer collateral-either your house, car or any other asset. One advantage of this route is that it carries a lesser interest rate compared to unsecured loan. Essentially, you're putting your credit history at stake here. Banks, especially now when times are dire, are not wont to offer consolidation to somebody with a credit score below of 600. Consolidation will restructure your unpaid medical bills so you can make lower monthly amortization payments. However, you will pay more in the long run because the process stretches your principal loan in addition to the interest rate that accrues over a longer payment term.

The second way is to seek the help of a debt management company which can bargain with the credit collection agency trying to recover the hospital's money or the hospital itself to reduce the unpaid medical bills to more manageable levels. One advantage of this method is you don't risk your credit history, although you will have to pay the debt management company for its troubles. The service provider should be able to provide you with details, but you should still insist that they report to the credit bureau that your unpaid medical bills are already paid as agreed or paid in full.

When dealing with unpaid bills, the important thing is to never panic. Talk it out with your family, doctor, friends, or even colleagues and solicit suggestions to find out the best option for your situation. Know that you are not in an island by yourself. Millions of Americans are in the same boat as you. While that thought may offer no consolation, it does means there are avenues to settle unpaid medical bills if you just put a little effort into tracking them down.

Filing Bankruptcy Due to Overwhelming Health Care Debt? Protect Your Future

Once you have decided to file bankruptcy to relieve overwhelming medical debt, you must consider how to best protect yourself in the future. Unless you take measures to prevent this debt from reoccurring, you can once again find yourself in medical debt without the benefit of filing for another bankruptcy. Protecting yourself from future medical debt should be one of your first concerns while filing for chapter 7 or chapter 13 bankruptcy. Individuals who have gone through bankruptcy due to devastating medical expenses have learned the hard way that their medical insurance was inadequate, and failed to completely protect them from financial disaster. Most individuals are insured through an employer-provided health care plan. These plans usually cover only a small percentage of the costs incurred after a catastrophic illness or emergency. Some individuals purchase their own health care plans. These individuals are usually self-employed. Individualized health care coverage is very expensive, and these plans have limitations as well. Still, there are options an individual can take to supplement their medical insurance coverage, minimizing their risk, of once again, becoming overwhelmed by medical debt.

Customizing health insurance can be a useful tactic. Individuals who purchase their own medical insurance have the advantage of tailoring their insurance plan to suit their individual needs. They can change their deductibles and coverage to reflect their specific health circumstances. Although employer-provided health care insurance is usually cheaper, there is decreased ability to modify this plan to meet their individual needs. One option some employers offer is to provide a stipend in place of health care insurance. This allows an employee to shop for a more personal insurance plan.

Catastrophic coverage is another option an individual can take to protect themselves from future medical liabilities. Catastrophic medical coverage is less expensive, and can be useful in enhancing an individual's health plan by covering just medical emergencies.

A Health Savings Account (HSA) can be a useful tool in managing medical debt. It is a tax-advantaged medical savings account available to taxpayers who are enrolled in a high deductible health plan. The funds contributed to a HSA are not subject to federal income tax at the time of deposit. These funds roll over and accumulate year to year if not spent. This approach allows the individual to set aside a certain amount every month into their HSA. These funds may be used to pay deductibles and other health care expenses not covered under their health care plan. A Flexible Spending Account (FSA) is another tool employers offer to assist employees to manage health care costs, but FSAs have significant disadvantages.

These are a few examples that individuals can consider when optimizing their health care insurance to protect them and their loved ones from medical debt and the threat of bankruptcy. There are many other concerns an individual must consider when planning for a medical emergency, such as the loss of income. Medical emergencies are very unpredictable, and no individual is immune to the possibilities of a medical crisis. It's a good idea to plan ahead for the financial impact of a potential health care crisis.

Wednesday, October 31, 2012

Tips to Avoid a Medical Bankruptcy

Did you know that more than half of all bankruptcies are because people are unable to pay their medical bills? This matter cannot be neglected anymore due to the factor that numerous people have to lodge complaint for a bankruptcy due to the expensiveness of medical bills day after day. Something that you need to understand is that in order to avoid a medical bankruptcy you first need to know how you can avoid it and what steps you need to make in order to stay away from a bankruptcy. If there is one thing you do not want to do that would be filing for a bankruptcy because all that is going to do is ruin your credit for 7 years or more and hurt your borrowing power even more than you will ever know.

When it comes to staying on the sidelines of a financial problem of great tips I have for you is simply not to be in a place where you cannot pay for your bills. I know that medical bills are usually unexpected but the fact of the matter is you can not cover too much thinking with respect to payments of others, because everything seems to return all their medical bills. My advice to you is to make sure that you don't have any debt anywhere else because the second you get a medical bill that needs to be paid you should pay it or else you will run the risk of getting a lien on your house, the medical facility taking money from your bank account and even such things as getting your wages garnished.

Tips to avoid a medical bankruptcy

Have proper insurance - The first thing you must do in order to avoid a medical bankruptcy is to have proper insurance. The thing to understand is that many people in the United States does not have adequate insurance and that is a major reason why so many people have to file a medical bankruptcy. My advice to you is to do whatever you can in order to get the best insurance possible because without it you will have higher odds of filing a bankruptcy when you really should not have to.

Plan ahead - If you know you will need to go into operating room for something important then you need to have a plan and be prepared to pay cash for whatever it is you are needing. What most people don't understand is there is always enough time to save up for a medical procedure so if you know one is coming up then sell things, cut costs, and ultimately save part of your income in order to cover your medical costs.

The most important factor a person have to know in order to escape a medical bankruptcy is to be sure that the outstanding bills are paid off or about to be paid off.

Saturday, October 13, 2012

Medical Bankruptcy: Fact or Fiction?

You have probably heard someone use the term "medical bankruptcy." This is a word commonly used by individuals who either are going through a medically related financial crisis, or are acquainted with someone who is facing severe medical debt. Although medical bankruptcy is not a legal term, it is a useful term to describe a financial remedy for an individual who may have reached the end of their rope because of medical debt.

Medical bankruptcy can be a misleading term because there is no legal remedy available exclusively for medical debt. In general, bankruptcy is the dissolution or reorganization of some or all of an individual's debt. When you file for any type of bankruptcy you must include all your debt. This would apply to home mortgage loans, car loans, credit cards, and medical debt. There are several types of bankruptcies, but most individuals filing a bankruptcy for medical debt will typically file for a Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 bankruptcy may allow an individual to eliminate their debt, while a Chapter 13 bankruptcy can allow an individual to reorganize their debt into a 3-5 year plan, while at the same time reducing the principle on their debt.

The idea that a medical bankruptcy exists as a legal remedy may have developed because the court handles medical debt in a different way than they might other types of debt. Not all debt will receive the same treatment in court. A bankruptcy court will generally divide an individual's debt into two classes: Secured Debt or Unsecured Debt. Secured debt is the type of debt that is usually tied to assets like an auto loan or home mortgage. Unsecured Debt is usually not tied to assets, yet can often be eliminated or greatly reduced through a bankruptcy. It's important to realize that medical debt is usually classified as an unsecured debt.

While the term "medical bankruptcy" is not a legal term, it is a useful way for an individual to describe how their finances fell into chaos. An experienced bankruptcy attorney will immediately understand what a client needs when they inquire about a medical bankruptcy. A bankruptcy attorney can then inform them how a bankruptcy could be a solution to their financial hardship caused by medical debt, and even help the individual decide whether a Chapter 7 or Chapter 13 is most appropriate for their situation. Once an individual has decided the best course of action, the attorney will then lead them smoothly through the legal process of filing, and obtaining a bankruptcy.

Sunday, September 30, 2012

Advice On Avoiding A Medical Bankruptcy

Are you on the brink of filing for a medical bankruptcy and want to completely understand what can be done to break free of it? What you need to realize is that over 50 % of all bankruptcies are due to medical bills and other costs connected with medical facilities. The reason why you must realize this is because you are not alone and because of that there are always going to be people out there willing to assist you get your life back to where it once was.

To be able to help you get your life back to normalcy I have fitted 4 great methods to quickly avoid a medical bankruptcy. What you need to know about every one of these is there are great deals of other options as well but these are the shortest and most effective easy methods to stop a medical bankruptcy from happening. Just note that if you are not comfortable managing this on your own then be sure you get some good help or at least talk with somebody about what you are going through.

Tips On How to quickly avoid a medical bankruptcy.

Settle on the amount - Something that people do all the time is settling on an amount which they can pay back in a reasonable amount of time. Just like if you have a $ 20,000 doctor's bill that is past due then you definitely could perhaps get that discounted to around $ 14,000 and have all that setup on monthly bills. The reason why you really need to settle on the amount of money is because it won't show on your credit report if you do settle. What the majority of us think is that their medical bills will come about on their credit report but truthfully they only do if they are sent to collection. That is the main reason you need to do all you can to stop anything from maneuvering to collection.

Ask for discounted payments - If you are filing for a medical bankruptcy simply because things are too tight and you can't afford to pay for all your expenses and your day by day living then it is a chance to ask for a reduced payment coming from the medical facility. What the majority of us don't realize is the medical facility doesn't want to see you go through a medical bankruptcy and the explanation is really because they don't get anything out of the deal. This is why you need to call in and let them know what is happening and that you genuinely wish to have your monthly payment reduced each month.

Transfer amount to a credit card - This is normally not something I suggest doing but it is better than filing for a medical bankruptcy. What you must understand is if you transfer the amount you were supposed to pay to a credit card then you wont have any medical bills and with that your credit card companies wont have as much of a hold on your life like a medical facility would.

Just be aware that to counteract a medical bankruptcy [] you need to think outside the box and really know very well what you can do to live your life the way it ought to be.

Thursday, September 13, 2012

Basics of Medical Bankruptcy

Have you heard of the medical bankruptcy? Well, you might think that this is all about being insolvent due to medical issues alone, and filing a 'medical bankruptcy' because of it. I cannot blame you for thinking that way because I also had the same first thought. It is a help for everybody, therefore it is a must that you have at least the basic knowledge about it. To help you be informed about this topic, here is some of the basic information regarding it.

Medical bankruptcy is a general term used to refer to the reason why a people need to file a bankruptcy. Actually, this is not a legal term. According to the its rules, if you are to file a medical bankruptcy, you need to either file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. In this filing, you need to comprise all your debts including all your medical debts and other unsecured loans. After some examination and it is proven that you are insolvent, they will free you from all your debts and will be declared into bankruptcy. When you file for a certain bankruptcy, you are required to list down all of your creditors, including your medical bills. This only clear up that 'medical bankruptcy' is not all about your medical debts.

Based on the statistics, provided by an article in CNN, medical debts is one of the basic reasons why people file bankruptcy. As a matter of fact, about 60% of the filed bankruptcy is due to medical issues. And almost all of these 60% are the single mothers and elderly.

Having health care insurance is not insurance at all. According to some medical bankruptcy statistics, almost 80% of the bankruptcy filers have insurance. This may be due to the fact that, even people have health insurance, they still bear most of the payments for the bills which forces them to file for bankruptcy.

Some of the people think that when you file a bankruptcy, doctors can refuse to cure you. Well, according to the federal law, those hospitals receiving subsidy from the government do not have the right to refuse from accepting a patient who had filed a bankruptcy. More often than not, the doctor and the patient are making agreement on the amount that the patient can afford to pay the doctor even he had suffered from bankruptcy.

Medical Bankruptcy is available for all who needs and who seeks for financial help. But I am advising you that filing it must be your last resort. This is not just a simple way for you to escape from your creditors and debts. It must be filed if you really do not have a choice and you can't really answer for your obligations.

It is undeniable that only a few really had the knowledge about this fact. As a matter of fact, this is a right of all individuals; therefore you must have the knowledge about it. In all cases of life situation, being well informed is one of the basic keys in giving solutions to the problem you thought will never be solved forever. The facts that I have presented are just the basics, if you wanted to have a full grasp about medical bankruptcy, research and be informed!