New Bill To Offer Relief From Medical Debt Bankruptcy
Anyone who watches the news can tell you medical bills are a leading cause of bankruptcy in the U.S. Even in the midst of a severe housing crisis with millions of people in foreclosure, losing their homes and filing for bankruptcy, there must be some kind of relief offered to those who need it the most. Americans without health insurance — about 45 million large — are in a precarious situation. Many are not "poor enough" to take advantage of government sponsored programs like Medi-Cal, for example, while others who do have insurance are under-insured for the medical needs they have. A critically ill person with ongoing medical needs will have ongoing medical bills, and often there is no end in sight to insurmountable medical debt.
But Phoenix bankruptcy attorneys know there may be new hope for those in medical bankruptcy. U.S. Rep. Mary Jo Kilroy, [D-Ohio] has proposed a new bill that specifies all medical bills paid off or settled (by way of bankruptcy through a Phoenix bankruptcy attorney or debt reorganization) would "fall off" of an individual's credit report, thus improving their credit within a 30-day timeframe rather than the up to seven years it may take otherwise. Kilroy supposes that those who struggle with medical debt should be treated differently than those with consumer debt because spending on credit cards is something individuals generally have control over while medical debt is most likely unavoidable.
While Kilroy's bill will not solve the issue of mounting medical bills, at least it gives families a chance to regain a decent credit score; even if they must file for Chapter 7 bankruptcy, they will do so knowing medical debt won't stigmatize their credit score when a bill like Kilroy's is passed.
If you are struggling with medical debt consider contacting a Phoenix bankruptcy attorney to help you decide if bankruptcy is a viable option for you.
Questions and Answers
Students from both private and public universities all over the country may also provide low cost or free advice. The sessions will only achieve directing clients to the right legal path in filing the right papers. Note that with the new bankruptcy laws taking into effect making the bankruptcy filing process more difficult than usual, an experienced bankruptcy attorney will be worth your money.
Many people who enter the bankruptcy process worry about the fate of their credit. This is actually unnecessary as the bulk of credit damage happens before the bankruptcy process is even initiated. While no one wants the added hassle of rebuilding their credit after resolving debt troubles, doing so can put you leaps ahead of others in the credit game.
Americans are now filing Chapter 7 or 13 Bankruptcy to get their debts under control. Bankruptcy in itself is designed for debt elimination. Chapter 7 bankruptcy functions to cancel out unsecured debt such as utility or medical bills, credit card, etc. Chapter 13 Bankruptcy on the other hand is designed to give individuals more time in repaying all their debts.
Filing for bankruptcy is good news whenever you are struggling with your credit card debt, mortgage or medical bills. Bankruptcy laws help families and individuals in their debt struggles. You have two options on how to deal with your debt problems, Chapter 7 (debt elimination) and Chapter 13 (reorganization). Always remember that you can regain credit again after successfully filing your bankruptcy.
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