A Complete Guide to Medical Bankruptcy
- 11.30.2008
- Article Number: 8
| The health care system in the United States is broken. About half of all bankruptcies are declared because of insurmountable medical bills, and of that huge number, about 75% of them had health insurance when the problems began.
Medical bankruptcy is not a problem of the poor or the upper middle or upper class. It is a problem for the middle class and the lower middle class - people who work hard, do their best to pay their bills, and raise their families.
All it takes is one major illness or accident and even if they have health insurance, they can owe many thousands of dollars in medical bills. If the accident or illness causes them to lose their job, and thus their health care insurance, their medical bills can run into hundreds of thousands of dollars.
There are two main causes for the huge upsurge in medical bankruptcies:
The first reason is that health care costs are rising at an alarming rate - about twice the rate of inflation. Insurance premiums go up, and insurance coverage goes down. Prescription drug costs are out of control.
The second reason for the huge upsurge in medical bankruptcies is that employers are passing a larger and larger portion of the cost of health insurance along to their employees. Most major employers have switched the health insurance in employee benefit packages from comprehensive coverage that covers almost everything and has a small deductible to a limited coverage policy with a high deductible. The cost of the insurance passed along to employees has gone way up, while the benefits offered have gone way down.
The insurance companies are doing very well. The health of their bottom lines has never been better. The middle class and lower middle class families are in a financial crisis. Until something is done to curb the cost of health care and reign in the insurance companies, you can expect to see more and more medical bankruptcies.
Milos Pesic is a Debt Management consultant who runs a highly popular and comprehensive Debt Consolidation web site. For more articles and resources on debt management, debt consolidation programs, free debt counseling and much more visit his site at:
=> http://debtpaid.info/
Article Source: http://EzineArticles.com/?expert=Milos_Pesic |
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Common Debts That Are Discharged by Bankruptcy
- 11.30.2008
- Article Number: 7
| Under the federal bankruptcy code individuals can discharge consumer debt in bankruptcy which allows them to start fresh. Filing for bankruptcy puts into effect the "automatic stay." The automatic stay immediately stops your creditors from trying to collect what you owe them. When you file for Chapter 7 bankruptcy, many of your debts will be canceled without any further repayment. In exchange, you might have to surrender some of your nonexempt property. Property that is exempt and need not be surrendered would be motor vehicles, clothing, household furnishings pensions and life insurance. The complete process takes about three to six months and commonly requires only one trip to the courthouse.
Common debts that are discharged by Chapter 7 bankruptcy are:
(1) Credit card debts, (2) Utility [telephone, gas, and electric service] debts, (3) Debts for professional Services [Doctors, dentists, attorneys, accountants], (4) Executory contracts and unexpired leases, (5) Department stores and catalogue charges, (6) Personal loans, (7) Federal and state tax liability.
Chapter 13 bankruptcy allows people to repay a portion of their debts with court supervision, over a three to five year period. Chapter 13 lets you rearrange your financial affairs, repay a portion of your debts and put yourself back on your financial feet. Under a typical plan, you make monthly payments to a bankruptcy trustee, who is appointed by the bankruptcy court to oversee your case. The bankruptcy trustee distributes the money to your creditors.
The most common reasons for filing a Chapter 13 bankruptcy are:
(1) The debtor is behind on his/her mortgage or car loan, and wants to make up the missed payments over time and reinstate the original agreement, (2) The debtor has valuable nonexempt property, (3) The debtor is not eligible for a discharge under Chapter 7 bankruptcy [the debtor has filed a prior Chapter 7 bankruptcy within the last 6 years], (4) The debtor has one or more substantial debts that are not dischargeable under Chapter 7 bankruptcy, but are dischargeable under the Chapter 13 bankruptcy [certain tax claims], (5) The debtor has a sincere desire to repay his/her debts, but needs the protection of the bankruptcy court to do so.
In many bankruptcy cases the debtor has an unpaid federal, state or local tax bill that will be included in the bankruptcy schedules filed with the petition. Our firm specializes in discharging income tax, property taxes, payroll withholding and employers' employment taxes, sales tax, excise tax, and social security payments, in bankruptcy.
If you would like to arrange a meeting to discuss these matters in more detail, please give us a call, and we would be happy to discuss the best plan to accomplish your objectives.
By Steven Sears, Attorney, CPA Irvine, CA website: http://www.corpadvisor.com
Article Source: http://EzineArticles.com/?expert=Steven_Sears |
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Credit Counseling & Bankruptcy Services Help Us Get Back on Our Feet
- 11.26.2008
- Article Number: 6
| Credit counseling and bankruptcy services provide the information and means on how to avoid incurring debts that cannot be paid and even to declare bankruptcy if an individual has legally declared his inability or impairment of ability to pay creditors. There is no specific amount of debt required for you to have a need to consult credit counselors and bankruptcy services. However, if you tried to organize your finances and planned how to get out of your debt but still feel helpless, overwhelmed or really cannot figure out a plan, then it's time to consult credit counseling and bankruptcy services.
Credit counseling started with The National Foundation for Credit Counseling or NFCC which was created by US credit grantors in 1951. Aside from taking care of their retail credit members, they also informed the public about credit and promoted financial literacy to help consumers avoid bankruptcy. However, the NFCC do not give counseling directly to consumers. It was only in the 1960s when local credit counseling franchises were established. In recent years, other major credit counseling agencies were established as well as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 which made credit counseling a requirement for debtors filing for bankruptcy in the United States.
Bankruptcy, on the other hand, can be traced back during ancient times when Roman bankers failed and declared to the public that they broke their banks and were no longer in a condition to continue with their business. However, in ancient Greece, declaring bankruptcy was not an option. If a person owed something and could not pay, his entire family would then be forced into debt slavery until such time that their physical labor would suffice as payment for the debt. In East Asia, there was a law in ancient times that mandated the death penalty for anyone who broke a contract three times. Nowadays, bankruptcy involves the remodeling of financial structures of debtors instead of liquidation and elimination of insolvent entities which were the practices of the past.
If you think that you require credit counseling and bankruptcy services, you need to be very careful when dealing with agencies and people providing such services. There are several fly-by-night parties that can disappear with your money or other credit counseling and bankruptcy services that will charge you a lot which unfortunately will add up to more financial worries. However, do not get discouraged because there are legitimate and helpful credit counseling and bankruptcy services which can actually help you get back on your feet. You need to check whether the service charges the required set up fee, if it is affiliated with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies, pay your creditors on time and give realistic promises. If the credit counseling and bankruptcy service is okay on all of these, then the agency is legal and can help you solve your financial problems.
Ashley Conner is a writer for Zipcodez.com, a widely-used local business listings search portal. Zipcodez.com also features an efficient job, movie, and restaurant search covering over 100 major cities nationwide. Ashley has covered useful topics and resources from "Arts & Entertainment" to "Wireless & Telecommunications" for Zipcodez.com. You can easily find out what convenient and useful resources are in your neighborhood by visiting http://www.zipcodez.com.
Article Source: http://EzineArticles.com/?expert=Ashley_Conner
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The Truth About Bankruptcy and How You Can Avoid It
- 11.24.2008
- Article Number: 5
| It's quite an awkward situation to deal with when one finds oneself overburdened by debts. A person feels miserable; and the too nervous guys turn to think that this is the end of their life. Such persons need a lot of patience and use their brain in finding ways for repaying all the debts to the creditors. For many of them bankruptcy may be good option and for others it may look rather unattractive. As far as a better choice is concerned one should try to avoid bankruptcy or being called a bankrupt.
Well let's know what bankruptcy exactly means.
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed or initiate a restructuring.
Avoiding Bankruptcy:
A wiser being would always try to conserve the valuable assets and switch on to other sensible options to come out of the debiting situation.
It's quite a difficult decision to file a bankruptcy as it may adverse impacts on you and your family life though it may not seem to have at its earliest. Also there are few good reasons that may compel you not to choose it as an option.
It may really mean to lose the valuable assets.
You are ultimately trialed in the court which decides your fate then.
It may become an obstacle for your career line too.
Once declared a bankrupt it reduces your credit values for years and you may need to face many troubles. This has a major impact on your social status as well. Social life thus becomes quite unhealthy, making one to feel the most miserable being in the society.
Choosing For The Better Ways:
First and foremost thing you need to do is try to minimize your expenses as much as possible because all you need at this time is just make your expenses within limits and encourage savings. Saving will definitely serve to be a good option in its long run.
Secondly you may need to increase your incoming resources .You may need to join a part time job, if any, you find suitable or convenient with. You may opt for better and high salary job options that may help you far more.
Next, budgeting of your expenses would help a lot.
One needs to occupy self with more financial knowledge and skills that may always help one out of trouble.
Try to pay the debts as soon you find yourself in the position after you have practiced a quite rigid budget.
If you are looking for some loans it may probably seem to be a difficult task for you because of your less credit. So all you require is to focus in increasing your credit score to make yourself capable for the same.
After all everything depends on personal abilities and skills. Only you can help yourself out of this situation.
It's said that: "God helps those who help themselves"
At Seattle Bankruptcy Lawyer over 90% of individuals and families still qualify for Washington State Bankruptcy under the 2005 bankruptcy reform act. Research indicates that over 90% of those eligible to file for bankruptcy in Seattle, Everett and Tacoma.
Article Source: http://EzineArticles.com/?expert=Robert_Stark
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Bankruptcies on the rise
- 10.25.2008
- Article Number: 4
| These are boom times for Judith Whitman and the other San Jose area lawyers who practice before U.S. Bankruptcy Court in San Jose.
For the past year, a steady rise in home foreclosures in Silicon Valley has driven a relentless increase in bankruptcies filed here.
Now, as the economy sags, small businesses are also turning up in bankruptcy filings, lawyers say, bringing in more clients than they've seen since the bankruptcy laws were changed by Congress in 2005.
A worried friend recently asked Whitman if her business was suffering because of the economic downturn.
"We're doing fine,'' Whitman reassured her friend, in what might have been an understatement.
Bankruptcies filed in the third quarter of 2008 are up 92 percent over the same period in 2007, according to a review of cases filed with the court, which covers Santa Clara, Santa Cruz, Monterey and San Benito counties.
As of Sept. 30, there have been 5,594 cases filed; 4,453 cases were filed in all of 2007.
Many of these bankruptcies are being filed by people who can no longer afford the home loans they took out during the housing boom. They file for personal bankruptcy under Chapter 13 or under Chapter 7, which is a total liquidation of assets. |
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