Medical Bills Archives - Page 2 of 2

Bankruptcy Law, Credit, Timothy Kingcade Posts

The WRONG Reasons to File Bankruptcy

Posted on April 20, 2015by Admin

Although you may be receiving unwanted collections calls and falling behind on some bills, bankruptcy may not be the best option for you. There are certain types of debt which bankruptcy cannot erase. For example, back child support, alimony obligations, student loans and certain tax debts are non-dischargeable in bankruptcy.

Below are four reasons you should NOT file for bankruptcy:

1. You cannot make small payments on unsecured debt. Unsecured debt consists of most credit card debt and medical bills. In other words, it is debt that the lender has allowed you to run up without asking for a collateral in return. If you default on unsecured debt, the lender has nothing to repossess. Most consumers think that failing to make these payments will result in wage garnishment or other significant consequences. However, most lenders cannot take action unless they sue you. This can oftentimes be a lengthy process, providing you time to come up with the payments. If the amount you owe is small, the lender may write it off as uncollectable, rather than taking legal action. There are also options such as the negotiation of your interest rate or being placed on a realistic payment plan.

2. You want debt collectors to stop contacting you. The Fair Debt Collection Practices Act (FDCPA) requires debt collectors stop contacting you if you ask them. You must send the collection company a certified letter requesting this. After you have taken such action, it is against the law for the collection company to contact you, except to let you know they are either going to take legal action against you or stop their collection efforts.

3. Most of your debts are from recent income taxes, court judgments, child support payments or student loans. These are some of the debts that are oftentimes non-dischargeable in bankruptcy court. Filing for bankruptcy will not relieve you of these type debts.

4. You do not have any assets or income outside of Social Security, unemployment or welfare. Creditors cannot garnish your Social Security income, unemployment or welfare, even if they sue you. It is not necessary to file bankruptcy if you do not have an income that creditors can take or assets they can seize.

Click here to read more on the wrong reasons to file bankruptcy.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

To Collect Debts, Nursing Homes are Seizing Control over Patients

Posted on January 29, 2015by Admin

Lillian Palermo did her best to prepare for end of life care. She arranged for her power of attorney and health care proxy to be her husband, if she ever became incapacitated. Now in her 80’s, her husband Dino, eight years her junior, feeds her home-cooked Italian meals, sings her favorite songs and pays a private aide to be there when he cannot at the Catholic nursing home in Manhattan.

Last summer, after he disputed nursing home bills that had suddenly doubled his wife’s co-pays, and complained about the inexperienced employees who dropped his wife on the floor, Mr. Palmero was shocked to find a six-page legal document lying on her bed. It was a guardianship petition filed by the nursing home, asking the court to give a stranger full legal power over Mrs. Palermo, now 90, and complete control of her money.

Many people are unaware that a nursing home can take such a step. However, interviews with system veterans and a review of the guardianship court data show this practice has become routine, shedding light on the growing power nursing homes have over residents and family members amid changes in the financing of long-term care. At least one judge has ruled this tactic by nursing homes is an abuse of the law, but the petitions, even if they are ultimately unsuccessful, force families into costly legal battles.

Mr. Palermo, 82, was devastated by the petition. A court evaluator eventually reported that Mr. Palermo was the appropriate guardian, but not before his legal expenses reached $10,000. In the end, Medicaid’s recalculation put his wife’s monthly co-pay at $4,558.54, almost $600 less than the nursing home had claimed, but far more than the $2,642 Mr. Palermo had been paying under an earlier Medicaid calculation. As soon as the nursing home cashed his check for the outstanding balance, it withdrew the guardianship petition.

Click here to read more on this story.

http://www.nytimes.com/2015/01/26/nyregion/to-collect-debts-nursing-home-seizing-control-over-patients.html

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

FICO’s New Credit Score and What it Means for Home Buyers

Posted on September 10, 2014by Admin

Following the 2008 housing crash, your credit score now plays a major role in the home buying process. Having a low credit score can result in borrowers having a higher mortgage interest rate and sometimes not qualifying for a loan at all.

FICO’s new credit score model is expected to change all that. The upgrade, called FICO 9 is likely to result in a seismic shift in credit reporting, helping those who have had less than perfect credit.

FICO 9 will be released this fall and will be less sensitive to medical collections information reported to credit bureaus. According to FICO, the median FICO score for consumers who only have medical collections on their credit report will increase by 25 points with the changes.

The new model also drops collection agency accounts that are paid off either in full or via a settlement. In addition, under FICO 9 people will be able to get a credit score even if they lack credit history. Credit bureaus will instead be able to pull their phone bill or cable bill. This will tell lenders if the applicant is at risk of defaulting or if they have a good track record of paying their bills on time.

Mortgage experts do not anticipate FICO 9 having a dramatic increase in new home sales, but they do say, “It will help a set group of people secure a loan or get better terms.”

Under the current FICO score, a settled collection account can drop a score down low enough to not qualify for a mortgage. Under FICO 9, borrowers who could not pay their debt in the past but are now back on track, will not be penalized for past credit mistakes.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

New FICO Model Could Boost Credit Scores for Millions

Posted on August 19, 2014by Admin

FICO, the company responsible for the most widely used credit score in the U.S. announced this month that its newest scoring model will differ drastically from past versions. Known as FICO 9, the new model will take effect in fall 2014. FICO 9 will differ from FICO 8 in two major ways:

1.) It will differential between medical and non-medical bills that have been turned over to collections. Medical bills will no longer carry as much weight in consumers’ credit scores. Currently, FICO 8 makes no distinction between unpaid medical and non-medical bills.

2.) It will disregard accounts in collections that consumers have already paid. Currently, FICO 8 makes no distinction between paid and unpaid accounts in collections.

Treating medical debt differently comes as a welcome change to consumers. In a May 2014 report, the Consumer Financial Protection Bureau (CFPB) said millions of Americans’ credit scores are being “overly penalized” by medical debts in collections.

So how do you know if your credit score will improve because of the new model? Basically, if your credit score is low as a result of unpaid medical bills or bills that went into collections that you later paid, you are likely to get a significant boost from FICO 9 when it takes effect.

Remember, you have the power to boost your credit score by following these “money smart” moves:
• Pay your bills on time.
• Keep your balance on credit cards below 30% of your total credit limit at ALL times.
• Using credit as early in your adult life as possible.
• Keeping a good mix of credit accounts on your credit report.
• Applying only for credit that you actually need.

If you are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

When should you consider bankruptcy?

Posted on July 29, 2014by Admin

Many consumers struggling to pay off credit card debt or medical bills wonder when the right time is to file for bankruptcy- or if bankruptcy is even the best option for them. It makes little sense to continue struggling against a mound of debt you are not even making a dent in with monthly payments– or maybe you are no longer able to afford those payments. A good rule thumb is, if it would take you five years or more to repay what you owe, you should consider filing for bankruptcy. Why five years? Because that is how long you would be required to make payments under a Chapter 13 repayment plan.

However, most consumers qualify for Chapter 7 bankruptcy, which is typically faster (takes approximately three to four months, as opposed to five years) and erases all of your credit card debt and medical bills. If lower interest rates would help you pay off the debt within five years, consider scheduling an appointment with a credit counselor associated with the National Foundation for Credit Counseling (www.nfcc.org). These nonprofits can set you up with debt management plans that may offer you lower rates on your credit card debt.

Many people feel an obligation to pay what they owe, even if in reality they will never be able to pay off the debt. Bankruptcy laws allow individuals to gain a fresh start, so they can take care of themselves and their families. If you are behind on your mortgage payments, filing for Chapter 7 bankruptcy can allow you to stay in your home and catch up on your payments or negotiate with your lender. This is all thanks to the automatic stay which immediately goes into effect and prohibits your mortgage lender from foreclosing on your home.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Medical Debt: The Number One Cause of Personal Bankruptcy

Posted on February 10, 2014by Admin

This year it is expected that 1.7 million American households will be forced to file for bankruptcy due to overwhelming medical debt. This makes medical debt the largest cause of personal bankruptcy filings- surpassing credit card bills and unpaid mortgages, according to new data. Even having health insurance does not shield many Americans from the weight of medical debt.

According to recent data, 25 million Americans hesitate to take their medications in an effort to control medical costs. However, delaying the needed medication is only a short-term fix which can often result in expensive emergency room visits or worse.

More than 20 percent of the population between the ages of 19 and 64 will struggle to pay some sort of medical debt. High-deductible insurance plans, requiring consumers to pay more out-of-pocket expenses, are the most challenging for Americans. With the average American family bringing home just $50,000 a year, an unexpected medical bill coupled with a high-deductible insurance premium can quickly become unmanageable debt.

Obamacare is not likely to fix the problem. While the Affordable Care Act will give more people coverage, those with year-round coverage are likely to still be overwhelmed with medical debt. The number of households forecast to file for medical-related bankruptcies this year is three out of every five filings.

Data from NerdWallet Health revealed that 15 million people will deplete their savings to cover unexpected medical bills. Another 10 million will be unable to pay for necessities such as rent, food and utilities because of those bills.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The Devastating Effect Medical Bills can have on your Credit Score And what you can do about it

Posted on March 19, 2013by Admin

One thing that can be the most devastating to your credit score is an unpaid medical bill. Many Americans find themselves with a low credit score due to unpaid medical debt. Commonwealth fund estimated that nearly 30 million Americans were contacted by collection agencies for unpaid medical bills during 2010. In many cases, they did not know about the debt until it already damaged their credit score. A combination of sky-high bills, insurance processing delays and billing mistakes are often to blame for credit-harming medical bills. Unfortunately, many patients believe that medical bills cannot harm their credit score, when in reality even unpaid $15 co-pays can cause your credit score to plummet.

See below four medical bill myths that can wind up hurting your finances and your credit score:

1. As long as I am making payments on a medical bill, it cannot be sent to collections.

2. I have to be notified before a medical bill is turned over to a collection agency.

3. Medical collection accounts are treated differently than other types of collection accounts when credit scores are calculated.

Another unfortunate fact about medical debt is that most of those who are contacted by collection agencies do not fully understand their rights regarding the debt. If you are contacted by a collection agency you have (1) the right to receive written confirmation of the debt and (2) the right to dispute the debt. Under the Fair Credit Reporting Act, you also have the right to dispute inaccurate information on your credit report. Congress is currently considering the Medical Debt Responsibility Act, which will help out those who are struggling with medical debt. The proposed legislation would require medical bills to be removed from credit reports 45 days after they are paid as long as the original amount does not exceed $2,500.

Click here to read more on the negative effects medical bills can have on your credit score.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Don’t Let a Car Accident Wreck Your Credit

Posted on January 4, 2013by Admin

Many car accident victims are often burdened with major medical bills after their accident. In fact, according to a Harvard study 62 percent of bankruptcies are caused by outstanding medical bills. Insurance claims can be extremely confusing and differ according to state and policy. While waiting for your insurance claim to settle, these medical bills are often sent off to collection agencies. This in turn can have an immediate impact on your credit score. Insurance companies have a reputation for taking their time settling claims, leaving accident victims sitting on a mountain of debt.

Below are some ways to avoid the accident having a negative impact on your credit score:

1. Provide all health and auto insurance information to any health care providers you have seen after the accident. The worst mistake you can make is to assume that one or the other will be solely covering your medical costs. Also make sure you provide your claim number with your medical providers.

2. Even though it is a stressful time, you must be proactive. Promptly report the accident to your insurance company. If you delay your claim, insurance companies may try to use this against you as grounds for denying a claim.

3. Keep all of your mail, records, reports, etc., organized. Save every piece of mail you receive regarding the accident. This can include any type of correspondence between you, the medical providers or the insurance companies.

4. Educate yourself about balance billing. Most health care providers are required to follow certain billing procedures. If you are not aware of the procedures, you might become the victim of balance billing where you are not billed within a timely manner.

5. Do not hesitate to ask your insurance agent for help.

6. The best results come to those who are persistent. You may feel as though you are annoying your company’s adjusters; however, they are more likely to settle your claim in a timely manner if you are persistent.

7. It is not in your best interest to try and settle your claim alone. There are often important deadlines and procedures that you do not know, therefore consider hiring an attorney to help you through this process.

8. If you are denied a claim, challenge the denial. Your attorney can help you file a suit to rightfully claim your settlement.

9. The scary truth is that you may be liable for some of your medical bills. However, you can try to negotiate the amount you owe. Your attorney can also help you negotiate this with your health care provider.

To read more on this story visit: http://money.msn.com/credit-rating/will-a-car-crash-wreck-your-credit?page=2