The past few years' changes to the health care system have led to an increased scrutiny toward the industry itself, the way it treats patients and its billing practices. The last of these has become a cause for concern as many patients have dealt with staggering sums of medical debt and an unyielding billing system. If you are one of the nearly 43 million people in such a situation, you might be wondering what you can do. Here are several ways to manage medical debt.
When people fall behind on paying their bills, they look for places to cut corners. They might ask questions like these:
On June 1, the Supreme Court ruled that junior mortgages could not be stripped during a Chapter 7 bankruptcy if the owner was underwater on the property. The ruling further clarified that this was the case so long as the loan was secured by the home and the claim was allowed under bankruptcy law. It is expected that this ruling will help mortgage lenders who are junior lien holders.
Minnesota residents considering a bankruptcy filing may be interested in a May 18 decision by the U.S. Supreme Court regarding how funds are distributed when a Chapter 13 bankruptcy is converted to a Chapter 7 bankruptcy. The case in question concerns a Texas man who sought the return of funds that had been garnished from his paycheck but not yet distributed by the Chapter 13 trustee. The unanimous Supreme Court decision overturned a ruling by an appeals court and ordered that the money be returned to the man.
Debtors living in Minnesota may benefit from understanding more about obligations mandated by undertaking Chapter 13 bankruptcy. This form of bankruptcy is designed for debtors who have a regular income. These debtor are afforded three to five years to pay off all or a portion of what is owed. In order to qualify for Chapter 13 bankruptcy, debtors are required to develop a repayment plan that can be approved by a bankruptcy judge.
Although a Chapter 13 bankruptcy may eliminate some debts, others may remain. For instance, an individual who owes child support or student loans will generally still owe those debts after the case is over. Additionally, some debts related to criminal activities such as drunk driving may still be owed by the debtor after the case is resolved. Long-term debts such as a mortgage may also remain.
When people in Minnesota are struggling under the burden of unmanageable debt, they may not know what to do in order to obtain some relief. Such debt can result from unexpected illnesses, unemployment and overspending with credit cards and lines of credit. No matter how the debt ballooned, reaching solvency can involve either negotiating with creditors or filing for bankruptcy.
People who are struggling with their debt in Ramsey, Minnesota may choose bankruptcy as a viable option to reduce debt and create manageable monthly payments. Eliminating interest payments and other expenses can ease the burden and give consumers better control over their finances. Not all debts can be discharged in a bankruptcy, and some have special requirements that debtors should be aware of.
When a person in Minnesota who has significant amount of debt is thinking of filing for bankruptcy, it is important for them to know the difference between Chapter 7 and Chapter 13 bankruptcy. For example, Chapter 7 involves a discharge of debts while Chapter 13 restructures the debts.
If you are struggling with medical debt, then you need not feel alone. According to a 2013 report from NerdWallet, 56 million Americans have medical debt problems, and the leading cause of personal bankruptcy in the United States was medical debt.