medical debt Archives - Page 10 of 10 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Timothy Kingcade Posts

$34 Million Settlement Received for Consumers Victimized by Medical Credit Cards

Posted on December 15, 2013by Admin

GE Capital has agreed to pay up to $34 million to resolve allegations that it misled consumers about the terms for credit cards offered by doctors to pay for medical procedures. This is the first settlement of its kind involving medical credit cards, which doctors and dentists offer to patients to finance expensive treatments, typically not covered by insurance. While these medical credit cards resemble other credit cards, there is a critical difference: they are marketed by caregivers to patients, often at vulnerable times, such as when those patients are in pain or when their providers have recommended care they cannot afford or insurance will not pay for.

The recent settlement comes as the Consumer Financial Protection Bureau is scrutinizing deferred interest financing plans, under which borrowers pay no interest for a set period of time, but are later hit with higher interest rates, oftentimes much higher than traditional credit cards. Credit card issuers have come under fire over disclosures for marketing medical credit cards, which often come with initial interest rates of 0% that later jump to double-digit rates if the amount owed is not paid off in full before the promotional period ends. Deferred interest cards, increasingly common in medical offices, are also offered widely by retailers with deferred financing terms for big purchases.

CareCredit, a division of GE Capital, is the largest issuer of medical credit cards with around four million cardholders and 175,000 participating medical offices. The CFPB said CareCredit placed borrowers in a financing plan without ensuring that the medical office staff selling the plan gave a thorough explanation as to the terms and conditions of these cards. The bureau said many consumers believed they were not being charged interest, when they were actually being levied nearly 27% interest after an initial interest-free period.

The settlement has resulted in GE Capital having to notify more than 1.2 million consumers that they can file a reimbursement claim for interest charges and fees. In addition, CareCredit must contact new consumers directly within 72 hours of taking out a credit card loan to explain the terms and conditions to them.

Click here to read more on the story.

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

The Dangers of Medical Credit Cards

Posted on October 22, 2013by Admin

We all know that medical bills can be costly, especially when insurance only covers a small portion of the procedure. But recently, some doctors have been offering a solution to this problem- a special line of credit to help cover your bill. What seems like a perfect solution is becoming a credit nightmare for many. This “buy now pay later” option comes at a cost- high interest rates and severe penalties if payments are late or missed.

A growing number of health care professionals are urging patients to pay for treatment not covered by their insurance plans with credit cards and lines of credit that can be arranged quickly in the provider’s office. The cards and loans, which were first marketed about a decade ago for cosmetic surgery and other elective procedures, not typically covered by insurance, are now victimizing older Americans.

Patrcia Gannon, 78, learned the hard way when she signed up for Dr. Knelinnger’s medical credit card to cover her partial denture. The cost for the procedure was more than $5,700. She pays roughly $214 a month, which eats up about a third of her Social Security check. If she is late, she faces a penalty of $50. The interest rate for the card is 23 percent and she receives a 33 percent penalty rate if a payment is missed or late.

Doctors, dentists and other medical professionals have a financial incentive to recommend the financing because it encourages patients to opt for procedures and products that they might otherwise forgo because they are not covered by insurance. It also ensures that providers are paid upfront — a fact that financial services companies promote in marketing material to providers.

While medical credit cards resemble other credit cards, there is a critical difference: they are marketed by caregivers to patients, often at vulnerable times, such as when those patients are in pain or when their providers have recommended care they cannot afford or insurance will not pay for.

The problem has become so severe that attorneys in several states have filed lawsuits claiming that certain dental practices and other medical professionals have misled patients about the financial terms of the cards, employed high-pressure sales tactics and overcharged for treatments and billed unauthorized work.

The New York attorney general’s office found that health care providers had pressured patients into getting credit cards from one company, CareCredit, a unit of General Electric, which gave some providers discounts based on the volume of transactions. The investigation found that patients were misled about the terms of the credit cards, and in some instances, tricked into believing that they were agreeing to a payment plan with the medical provider when, in fact, they were being pushed into high-cost credit.

Click here to read more on this story and the dangers of medical credit cards.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Bankruptcy Blunders: Top Reasons Your Bankruptcy Filing May Get Rejected

Posted on September 11, 2013by Admin

A recent FindLaw.com survey revealed that one in eight Americans have considered filing for bankruptcy. Whether because of a job loss, carrying an excessive amount of credit card debt or medical debt, a large number of Americans have considered the option of bankruptcy to gain a fresh financial start. But not everyone’s case is accepted by bankruptcy courts. Your bankruptcy filing can be rejected for a number of reasons- often due to mistakes or omissions of proper paperwork. That is why it is crucial you hire an experienced bankruptcy attorney to assist you in the process.

Below are a few reasons why your bankruptcy filing could be rejected:

1.) You do not pass the “means test” in court. In order to qualify for Chapter 7 bankruptcy, where most of your unsecured debts are wiped out, you must pass a “means test” imposed by the court. The means test is a way for the court to determine how much disposable income you have. If you have too much money, a court may reject your Chapter 7 bankruptcy request. It is important to meet with an experienced bankruptcy attorney who will advise you of all your options and let you know if you qualify for Chapter 7. At Kingcade & Garcia, P.A. we offer free consultations where we sit down with our clients, assess their financial situation and determine if bankruptcy is the right option for them.

2.) You fail to provide requested tax documents or fail to appear at the creditor meeting. The court may reject or dismiss your bankruptcy case if you misrepresent your tax information or fail to provide tax documents altogether. In past years, you were not required to file tax returns to pursue bankruptcy. But since bankruptcy reform passed in 2005, this has become a requirement.

3.) You submit a proposed repayment plan that is not feasible. With a Chapter 13 bankruptcy filing, you repay some of your debts over a period of three to five years. If you file for Chapter 13 bankruptcy and set up a repayment plan, your proposed plan must be feasible in order to be accepted by the courts. The courts will review your current income, debts and assets to determine whether you can realistically pay back your creditors under the Chapter 13 plan. If you cannot, they can reject your case.

4.) Someone challenges your bankruptcy request. Once you have filed for Chapter 7, the goal is to get a “discharge” of your debts. A discharge is a permanent court order that relieves you of any legal liability to pay unsecured debts like medical bills or credit card debts. However, for those filing a Chapter 7, a creditor or the bankruptcy trustee has the right to challenge your discharge. This can occur if the trustee or debtor believes you have been dishonest or committed fraud in some way. These can include: hiding assets, making false statements or even failing to appear at mandatory credit counseling- any and all of these can result in a challenge.

Click here to read more on the top reasons your bankruptcy filing could get rejected.

Bankruptcy Law, Timothy Kingcade Posts

Study Finds People Diagnosed with Cancer More Likely to Declare Bankruptcy

Posted on May 22, 2013by Admin

According to a recent study from Fred Hutchinson Cancer Research Center, people diagnosed with cancer are more than two-and-a-half times more likely to declare bankruptcy than those without cancer. Researchers also found that younger cancer patients had two- to five-fold higher bankruptcy rates compared to older patients, and that overall bankruptcy filings increased as time passed following diagnosis.

“This study found strong evidence of a link between cancer diagnosis and increased risk of bankruptcy,” the authors of the study wrote. “Although the risk of bankruptcy for cancer patients is relatively low in absolute terms, bankruptcy represents an extreme manifestation of what is probably a larger picture of economic hardship for cancer patients.” Medical debt is one of the main causes of filing for bankruptcy. In fact, it’s a contributing factor in more than half of all bankruptcy filings. This study raises important questions about the factors underlying the relationship between cancer and financial hardship.

Click here to read more about the study that links cancer diagnosis to an increased risk of filing for bankruptcy.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Doctors Driven to Bankruptcy

Posted on May 2, 2013by Admin

This reads as an unlikely headline, but recently a number of doctors have been struggling to keep their medical practices financially sound. According to the American Bankruptcy Institute’s Health Care Committee, Chapter 11 bankruptcy filings by physician practices have recently spiked. In recent weeks, there were at least eight filings, which is unusual for the industry.

In many cases it is not major medical malpractice lawsuits leading doctors to file bankruptcy, it is the struggling economy that has been blamed for this growing trend. Patients are cutting back on doctor visits and elective procedures due to their own financial hardships. Doctors attribute their financial struggles to shrinking insurance reimbursements, changing regulations and the rising cots of malpractice insurance, drugs and other business necessities.

Click here to read more on doctors being driven to bankruptcy.

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, Timothy Kingcade Posts

Californians Fear Medical Debt Resulting in the Hesitation to Seek Proper Health Care

Posted on March 2, 2012by Admin

A study recently conducted by researchers at UCLA showed that California residents are not seeking medical care due to a lack of health insurance. A shocking 50 percent of adults who are uninsured claimed they did not see a doctor one time last year. On the contrary, 92 percent of insured adults did visit a doctor’s office last year. Children with parents who are uninsured are also lacking proper medical care because an even lower 40 percent visited a doctor last year, while 87 percent who were covered under their parent’s medical insurance did seek medical care during the last year.
Medical debt throughout the nation is at an all-time high. Therefore, it is suggested to be the reason the uninsured population is hesitating to seek medical care. Even those in California who have medical insurance, but limited coverage show high rates of medical debt. The study showed that of the non-elderly population in California, 2.6 million uninsured are struggling with medical debt. The rate of unemployment in California is at an extremely high level and is not expected to lower any time soon. Those individuals struggling with extreme debt as a result of their medical bills have been forced to consider filing Chapter 7 bankruptcy as a solution.
To read more on this story visit: http://www.chapter7.com/job-cuts-leave-californians-facing-record-levels-of-medical-debt/
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. 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 at www.miamibankruptcy.com.