medical debt Archives - Page 7 of 10

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips for Seniors Struggling with Credit Card Debt

Posted on May 2, 2017by Admin

If you are a senior struggling with credit card debt, you are not alone. For the first time, middle-class households headed by someone 50-plus years of age carried more credit card debt on average than households of people younger than 50, according to a recent study by Demos National Survey on Credit Card Debt. Half of the respondents said they carried medical debt on their credit cards and a third said they used credit cards to pay for daily expenses.

Seniors carry credit card debt for a variety of reasons. Some are still paying off educational loans or their children’s educational loans. Many seniors are carrying credit card debt into retirement. The debt may have been management when they were working, but has become a burden when their income level drops. Oftentimes, medical debt compounds the problem, as health insurance only covers a portion of healthcare costs.

Here are some tips for seniors to help take control and manage their credit card debt:

Find a nonprofit credit counselor. The sooner you seek help, the better.
Contact your credit card company to see if you can work out a payment plan.
Adjust your lifestyle. Cut your expenses (i.e. – expensive cell phone plans, cable and Internet packages);
Get help with budgeting. Paying off your debts only works if your spending is under control. Know where your money is going every month. Making a few small changes to your monthly expenses can add up and give you more money to pay down debt.
For medical debt, talk with your doctor’s office to see what your options are. Avoid medical credit cards they may offer you; these come with very high interest rates, regardless of your credit score.
Consider a reverse mortgage. There are many ways you can use your home to get through difficult financial times, but there are risks associated with taking this route. Make sure this will solve your financial problem without adding to it.
Consider bankruptcy. If you are struggling with insurmountable credit card or medical debt, bankruptcy may be right for you. This option will allow you to reorganize your financial situation and discharge your debts if you cannot pay them. There are several different types of bankruptcy, so you want to carefully weigh your options. Many bankruptcy attorneys offer free consultations and will advise you on the best course of action.

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 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, Debt Relief, Timothy Kingcade Posts

Study Shows Floridians Struggled with Medical Bills in 2016

Posted on March 28, 2017by Admin

According to a survey published last week by the Commonwealth Fund, residents of Florida and Texas reported having more difficulty paying their medical bills in 2016 than residents of California or New York.

All four states have seen an increase in the number of residents with health insurance since the Affordable Care Act was launched in 2014. The difference is, unlike in California and New York, legislators in Florida and Texas refused to expand Medicaid to most of the low-income adults, resulting in higher uninsured rates. Florida’s uninsured resident rate was 16 percent last year.

The survey reported that 41 percent of Floridians reported they had trouble paying their medical bills, they were contacted by a collection agency about unpaid medical bills or they were carrying medical debt last year. Approximately 44 percent of Texans reported they had trouble paying medical bills last year. Only approximately 28 percent of Californians and New Yorkers reported similar challenges with medical debt.

However, state decisions on Medicaid were not the only contributing factors. The rate of illegal immigrants living in each state were also reportedly factors in the survey results due to the fact that undocumented immigrants are not eligible for Medicaid or ACA coverage.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all 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, Debt Relief, Timothy Kingcade Posts

New Survey Finds Medical Debt is the No. 1 Reason Collection Agencies Contact Consumers

Posted on February 3, 2017by Admin

Medical debt is the most common reason consumers receive calls from debt collectors, according to a first of its kind nationwide survey.

“The study by the federal Consumer Financial Protection Bureau found that 59 percent of people who reported they had been contacted by a debt collector said it was for medical services,” NPR reported. “Telecommunications bills were the second most common type of overdue bill for which debt collectors pursued payment, at 37 percent, and utilities were third, reported by 28 percent.”

The study, which examined consumer experiences with debt collectors, included more than 2,000 people and was performed between December 2014 and March 2015. The survey also found that more than one in four consumers felt threatened when a debt collector contacted them.

The study’s authors said medical debt is unique compared to other types of debt collection examined in the survey, as it was widespread across various demographic and credit-score groups.

Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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.

Related Resources:

http://lancasteronline.com/news/local/medical-bills-are-the-most-common-reason-for-debt-collector/article_384da034-e33e-11e6-a5e0-17c0fcdce41b.html

http://www.beckershospitalreview.com/finance/medical-debt-is-no-1-reason-collection-agencies-contact-consumers.html

Bankruptcy Law, Credit, Debt Relief

Medical Debt Collection Firms Ordered to Pay $577K for Threatening Consumers

Posted on January 12, 2017by Admin

Two medical debt collection firms must refund hundreds of thousands of dollars after they were caught falsely claiming there were attorneys involved in the collection actions. Two Oklahoma-based law firms, both named Works and Lentz, misled consumers by exaggerating the extent to which actual “lawyers” were involved in the collection attempts.

The companies involved in the case attempt to make collections on 700,000 accounts annually, collecting medical debt on behalf of hospitals, doctors, and other healthcare providers. From January 2012 to August 2016, every letter sent to the alleged debtors was printed on the firm’s letterhead, giving the impression that a legal action was pending.

Approximately one month after the letter was sent out; Works and Lentz assigned the account to a manager who contacted the debtor, representing themselves as a law firm.

In addition, when consumers called the firm back, they were greeted with a message stating, “You have reached Works & Lentz, Attorneys at Law.” The letters sent out to consumers ended with a computerized signature of an individual attorney with the title, “Attorney at Law.” The Consumer Financial Protection Bureau alleges that in most cases there was never an attorney who reviewed the collection accounts.

As specified in The Fair Debt Collection Practices Act, it is illegal for firms to use false, deceptive or misleading representations or means to collect a debt, including using false implication that any individual is an attorney or that communications are from an attorney when they are not. This law was designed to protect consumers and help prevent creditor abuse and harassment.

In addition to misrepresenting that they are attorneys, the CFPB alleges that employees of Works and Lentz provided information to credit reporting agencies related to consumers’ debts without verifying the information was correct.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What consumers need to know about FICO 9

Posted on October 11, 2016by Admin

If you do not already know, there is a new credit score called FICO 9. The new score comes with some important changes in the way people who have medical debt and other consumer debt are scored. So with all of the different credit scoring models out there- what makes FICO 9 so different?

First, FICO is the most widely used credit score in the country. In fact, 90% of all credit lenders (whether they are offering you a mortgage, car, or personal loan) use the FICO score in some way to determine your credit-worthiness.

More than 64 million Americans have some kind of medical collection record on their credit reports, according to Experian. A staggering 99.4% of medical debts are reported to credit bureaus by collection agencies, damaging consumers’ credit scores in the process. Consumer advocates have long been pushing to make credit scoring models more lenient on people who have medical debt.

With FICO 9, medical collections will be treated differently from non-medical collections, like credit cards. Your credit score will be less damaged by a medical bill you cannot afford to pay as opposed to a department store credit card you ran up the balance on.

This is a big win for consumers. Many people who struggle with medical debt get that way through no fault of their own. Whether you get sick or there is an accident that causes you to miss work, even with health insurance you cannot always control how high your medical bills become.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy Basics and When Filing is the Right Answer

Posted on September 5, 2016by Admin

Filing for bankruptcy can be a scary predicament. But we all know financial misfortune can affect any one of us, at any time. Whether it is a difficult divorce, an unexpected health crisis or an extended period of unemployment- bankruptcy can become less intimidating when you know how it works and what to expect.

So how do you know when it is the right time to file for bankruptcy? Here are a few questions to help you assess whether bankruptcy is a viable option.

Are you only making minimum payments on your credit cards?
Are debt collectors calling you?
Does the thought of organizing your finances cause you to have fear and anxiety?
Do you use credit cards to pay for necessities?
Are you considering consolidating your debts?
Are you unsure about the amount you actually owe?

If you answered yes to two or more of the questions above, it’s time to take a closer look at your financial situation. To determine where you are financially, take an inventory of all your liquid assets. Do not forget to include retirement funds, stocks, bonds, real estate, vehicles, college savings accounts, and other non-bank account funds. Calculate a rough estimate for each. Remember, virtually all retirement accounts are exempt from creditors, meaning you get to keep them if you file for Chapter 7 bankruptcy.

Then, collect and add up your bills and credit statements. If the value of your assets is less than the amount of debt you owe, declaring bankruptcy may be one way to get out from under your debt and get a fresh start.

There are many reasons people file for Chapter 7 bankruptcy. Some common reasons for filing for Chapter 7 are unemployment, large medical bills, overextended credit, and marital problems. Chapter 7 is sometimes referred to as a “straight bankruptcy.” Your assets are liquidated to pay off as much of your debt as possible. The cash from your assets is then distributed to your creditors. In approximately four months, you will receive a notice of discharge. For many, Chapter 7 offers a quick, financial fresh start. Many filers quickly rebuild their credit scores and have gone onto purchase homes.

For people who have property they want to hold on to, filing a Chapter 13 bankruptcy may be a better option. This type of bankruptcy is oftentimes referred to as a “reorganization bankruptcy.” Chapter 13 allows people to pay off their debts over a period of three to five years. For individuals who have consistent and predictable annual income, Chapter 13 offers a grace period. Any debts remaining at the end of the grace period are discharged. Once the bankruptcy is approved by the court, creditors must stop contacting the debtor. Individuals can then continue working and paying off their debts, while still keep their property and possessions.

If you are considering filing for bankruptcy, begin with these steps:

Gather all necessary documents. This will document your income, your assets, and all of your debts. Download a copy of your credit report for free to make sure you do not leave anything out. Put all of the relevant paperwork — statements from all of your creditors, deeds and titles to property and vehicles, pay stubs, copies of tax returns — into a folder.
Find an attorney who is an expert in bankruptcy. If you have an attorney you have used before, ask him or her for a referral to a bankruptcy specialist. Do your research online and in person, do not be sold simply by an advertisement. Look at a firm’s testimonials, past experiences with clients and the number of bankruptcy cases they have filed. With a good lawyer and the right information, filing for bankruptcy can give you the financial footing you need to get a fresh start.

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.

Related Resources:

http://www.fool.com/personal-finance/credit/2007/08/31/dont-be-afraid-of-bankruptcy.aspx

https://www.legalzoom.com/articles/bankruptcy-basics-when-should-you-throw-in-the-towel

Bankruptcy Law, Credit, Debt Relief, Florida Bar, Timothy Kingcade Posts

8 Things Debt Collectors Won’t Tell You

Posted on August 8, 2016by Admin

Debt collectors often use extreme and dishonest measures to try to collect on debts. However, there are a number of things that they are not likely to tell you, and knowing these things can make all the difference in resolving your debts.

Below are eight things debt collectors are not telling you:

Some of their threats carry no weight. Oftentimes, debt collectors use empty threats such as, “We are going to inform your creditor that you are refusing to pay this bill.” However, your creditor already knows you are not paying the bill, which is why the bill was sent to a collection agency.
If you tell them not to call during work hours, they must comply. According to the Fair Debt Collection Practices Act, debt collectors cannot continue to call you while you are at work, if you tell them not to. However, the 2011 Annual Report to Congress about the Fair Debt Collection Practices Act complaints proved that 17,008 complaints were filed in 2010 related to debt collection calls to consumers at work. This number is up from 11,991 complaints the previous year.
They cannot talk about your debts to others. Debt collectors are only allowed to discuss your debt with you, a co-signer, your spouse or your attorney. According to the Fair Debt Collection Practices Act, debt collectors can only contact “third parties” to locate you.
Your debt may be stale. Each state has its own statute of limitations that makes debt of certain ages not collectible. However, some debt collectors continue to target borrowers to collect on old debts.
Debt collectors are under pressure to collect, just like you are to pay. Most collectors work on sliding scale commissions. This means that the quicker they collect money from debtors, the higher their commission.
They cannot go after your possessions unless they sue you. Debt collectors must sue you before they can go after your property, including money in your bank account. Even threatening to sue you to collect a debt may be illegal if the collector has no intention of doing so.
Paying off this debt will not boost your credit ratings. When a debt is sent to collections, it will remain on your credit report for seven and a half years from the date you fell behind with the original creditor. Collectors will often tell you they will “update your credit report to paid in full status.” However, the change will not likely affect your credit report.
You probably do not have to pay your deceased relative’s debt. You are generally not responsible for the debts of relatives who have died unless you were a co-signer of the debt or the debt belonged to your spouse who died.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Why Chapter 7 Bankruptcy should be Your First Option and Not Your Last Resort

Posted on July 25, 2016by Admin

Many Americans turn to debt relief assistance options when they are struggling with medical, credit card or other types of unsecured debt. However, according to the Huffington Post, nearly half of all programs aimed at helping you with your debt problems, fail to achieve the results they promise. These programs include credit counseling services, debt settlement programs, etc. Even those who have success with such programs usually end up with extremely high, consolidated payments for many years and accrue thousands of dollars in interest.

Filing for bankruptcy can you save time and money when you are in financial distress. Here is an example that shows the money and time debtors can save if they choose to file for bankruptcy, rather than seek debt relief assistance. Imagine that you currently have $22,000 in unsecured debts, such as credit cards. You have recently lost your job and can no longer afford each of the individual payments; therefore you choose to consolidate your credit cards into one monthly payment with the help of a credit-counseling agency. Your monthly payment is now $418 per month for the next five years. Once you pay off your debt at the end of the five years, you have paid roughly $25,000 including interest. However, if you put the same payment of $418 per month into an IRA for five years with an average return of 9.74%, you would not only have saved yourself $3,000 in interest but you would also have approximately $32,000 saved for retirement.

Filling for Chapter 7 bankruptcy can eliminate years of extremely high monthly payments and ongoing stress. The process of filing bankruptcy can take as little as 90 days and the total cost is typically between $1,500 and $1,800.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Late Night Comedian John Oliver Makes ‘TV History’ by forgiving $15 million in Medical Debt

Posted on June 10, 2016by Admin

Nearly 9,000 consumers were relieved of their medical bills courtesy of HBO host John Oliver. As part of a segment examining the unscrupulous practices of debt purchasers on his show, “Last Week Tonight,” he forgave nearly $15 million in medical debt for consumers.

Oliver’s show engages in a form of investigative comedy, this time examining an overlooked industry. Institutions often sell their debt for pennies on the dollar to companies who then attempt to collect on the bills. These companies operate with little regulation and sometimes employ abusive collection practices to intimidate people into paying.

The show set up its own company to acquire $15 million worth of debt owed to hospitals in Texas, paying only $60,000 for the debt. Oliver described how “disturbingly easy” it was to set up the company; they called it Central Asset Recovery Professionals, and incorporated it in Mississippi to make the purchase.

The consumer’s medical debts ranged from $50 to more than $250,000. Since the debts were incurred in Texas hospitals, most of the people who owe money are from the state, Oliver said.

Oliver went on to say, people who owe bills should pay them but should not be forced to choose between paying medical debts and paying for food and shelter. He said people should never use credit cards to pay off medical debts.

Click here read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Florida Governor Signs Bill Aimed at Curbing Unexpected Medical Debt

Posted on April 25, 2016by Admin

Governor Rick Scott signed legislation this month that may help curb unexpected medical debt. The bill prohibits charges from an out-of-network provider when a patient has covered emergency care or covered non-emergency care services. It also establishes a payment process for insurers to provide reimbursement for such out-of-network services.

The legislation was prompted by complaints patients made who received emergency care treatment at in-network hospitals and subsequent bills from doctors who were out-of-network. Florida’s Chief Financial Officer issued the following statement: “This new law protects consumers by holding them harmless in times of both emergency situations when choosing a provider is not an option and in non-emergency situations when communication may not be made clear regarding out-of-network providers who may be offering care. As a result, consumers are left with a more affordable bill comparable to what they would have paid if the provider had been in their network.”

Under the new law, hospitals are required to maintain information on their websites to include contact information for practitioners and practice groups contracting with the hospital. It also states the hospitals are required to provide notice that care may be provided by entities that issue separate bills and might not work with the same health insurance companies.

Bills from out-of-network providers contribute to medical debt problems among insured, non-elderly adults, according to a Kaiser Family Foundation survey. Nearly 7 in 10 individuals with out-of-network medical bills they cannot afford to pay did not know the healthcare provider was out-of-network at the time they received care.

The bill should take effect July 1, 2016.

Click here to read more on this story.