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Huntsville Bankruptcy Law Blog

New legislation could lower medical debt risk

On behalf of Russell W. Crumbley, Attorneys at Law posted in Medical Debt on Friday, May 17, 2013.

If you feel as though you are drowning in medical debt, there may be hope on the horizon that has nothing to do with personal bankruptcy. Politicians on both sides of the aisle are working to help Alabama residents and others throughout the nation who have accumulated significant medical debt. Medical bills are extremely prone to errors, according to many political experts, which can cause serious problems for consumer credit scores.

Previous attempts at medical debt reform have fallen short. Now, however, it appears that political leaders truly understand the challenges faced by everyday Americans who happen to fall on hard health times. Sick people are particularly vulnerable to billing problems because they are distracted by their health concerns; as a result, they are more likely to have accounts go to collections because they do not catch errors. Insurance carriers and physicians' offices make mistakes in billing about 10 percent of the time, causing a significant number of patients to overpay.

Can you take out a loan to pay for bankruptcy?

On behalf of Russell W. Crumbley, Attorneys at Law posted in Personal Bankruptcy on Friday, May 10, 2013.

Those thinking about filing for personal bankruptcy may not realize one important aspect of the process: it is expensive. If you are in financial straits to begin with, you may think it is unlikely you will be able to hire an attorney to help you. Some people even consider using a loan to pay for an attorney's help, even when they know they will not be able to repay that money. Instead of taking out money on credit to pay for your bankruptcy, consider the following options.

First, it is important to remember that many bankruptcy attorneys will accept monthly payment plans. They can help you come up with an acceptable payment structure to make sure you are able to file bankruptcy when it would be most beneficial. You could also consider borrowing money from a family member or friend in the interim; you do not have to list those loans on your bankruptcy application. You might also be able to withdraw some funds from a 401(k) or other retirement account, which would generally be exempt from bankruptcy provisions.

The ins and outs of filing for bankruptcy

On behalf of Russell W. Crumbley, Attorneys at Law posted in Personal Bankruptcy on Thursday, May 2, 2013.

Are you an Alabama resident who is considering filing for personal bankruptcy, but you just do not know where to start? Bankruptcy law can be confusing, largely because so many options exist for seeking financial relief under existing law. Today, we will offer you a short primer about the different varieties of bankruptcy to help you understand more about your legal and financial options.

Three common types of personal bankruptcy exist: Chapter 7, Chapter 13 and Chapter 11. You may ask why these have such odd names; these are simply the chapters within Title 11 of the U.S. code, which defines and describes bankruptcy provisions. The most commonly used types of bankruptcy for individuals include Chapter 7 and Chapter 13, while businesses are more likely to file for Chapter 7 or Chapter 11.

Pay off your credit card debt quickly

On behalf of Russell W. Crumbley, Attorneys at Law posted in Credit Card Debt on Wednesday, April 24, 2013.

As more Alabamans seek financial relief from their credit card debt, an increasing number of positive stories are surfacing to inspire and motivate those who want to escape their financial burdens. These success stories have yielded a number of helpful hints and tips to pay off thousands in debt.

Saving money first depends on not spending it. Stay away from spending your disposable income on excess entertainment, clothing and other unnecessary expenses; instead, save your money for necessities such as gas, rent, utilities and medical bills. One family stopped all extra spending on January 1 of each year, putting all additional funds into debt reduction.

How to handle aggressive debt collectors

On behalf of Russell W. Crumbley, Attorneys at Law posted in Credit Card Debt on Tuesday, April 16, 2013.

If you are among the thousands of Alabamans concerned about credit card debt, you may not think you have many rights as a debtor. Your lenders may have intimidated you into believing that harassment is simply part of having debts, but you can avoid the headaches that come with having overdue bills. Industry experts say there are a few ways that you can effectively communicate with creditors and maintain your sanity at the same time!

First, financial gurus recommend getting organized. Be sure that all financial statements, earnings information and payment dates are clearly laid out before you attempt to communicate with your lenders. Before you borrow any money, you should consider the exact plan required to pay off your debts as quickly as possible; if you do not have a strategy, you should not be requesting loans or credit cards. Make sure you have drafted a detailed budget so you know exactly how much you can afford in payments each month.

How Credit Debt Can Affect Your Employment

On behalf of Russell W. Crumbley, Attorneys at Law posted in Credit Card Debt on Thursday, April 11, 2013.

Americans throughout Alabama and other states are struggling with unemployment, and many are finding out that their blemished credit history is making finding a job even more difficult. Credit card debt can surprisingly compromise your ability to find gainful employment.

Credit reviews often occur among employers in the financial industry. Companies such as banks, credit unions and similar firms want to make sure that their workers are able to manage financial assets responsibly. As a result, credit checks are becoming ubiquitous throughout a variety of corporate settings. These operating procedures can lead to minority populations being left out of the hiring process, largely because many of them have poor credit histories.

Strike Debt Abolishes Millions in Debt

On behalf of Russell W. Crumbley, Attorneys at Law posted in Medical Debt on Monday, April 1, 2013.

A group that emerged from the Occupy Wall Street movement has achieved a $1.1 million reduction in national medical debt, with some beneficiaries residing in Alabama. The group, Strike Debt, has created a system that allows individual investors to purchase medical debt that has been sold to collections agencies. More than 1,000 people have benefitted from the project to date. The organization is planning a week's worth of celebrations to commemorate their milestone accomplishment.

Although the group is proud of its achievement so far, administrators say the efforts have only just started. Strike Debt wants to ultimately relieve $12 million worth of debt.

Uninsured Americans face higher medical bills

On behalf of Russell W. Crumbley, Attorneys at Law posted in Medical Debt on Saturday, March 30, 2013.

It is no mystery that, with the rising cost of healthcare throughout the country, any substantial medical treatment can leave a patient with an astronomical amount of medical debt. This can put them on a quick track to financial ruin.

As time has marched on, the cost for health care has climbed, even if an individual's income has not followed suit. In fact, a professor at Johns Hopkins University stated that hospital costs have gone up by 6 percent each year between 2000 and 2010.

Pay cuts and subsequent debt could affect security clearances

On behalf of Russell W. Crumbley, Attorneys at Law posted in Personal Bankruptcy on Wednesday, March 20, 2013.

A security clearance is necessary for many men and women who serve in the United States military. A security clearance is not always easy to obtain, though. Men and women must meet certain criteria, including a strong personal financial life. Showing signs that an employee cannot live within their means -- excessive debt, personal bankruptcy, tax issues and so on -- could cost an employee their security clearance.

This has been tougher for civilian employees for the Department of Defense to maintain, especially after being hit with a 20 percent reduction in their pay. This reduction was caused by forced furloughs. Employees now must take a 22-week furlough.

Strategies for avoiding medical debt

On behalf of Russell W. Crumbley, Attorneys at Law posted in Medical Debt on Wednesday, March 13, 2013.

Scores of Americans - Alabama residents included - are mired in medical debt. In fact, this type of debt is one of the most ubiquitous among borrowers today. Experts still say you do not have to fall victim to the financial trouble that can accompany these medical costs. Consider taking a few simple steps to protect your credit score from physicians' bills.

First, everyone should purchase catastrophic health coverage. Many people end up in financial straits because they lack health insurance entirely. If you cannot afford high-end health insurance, do not fear - a variety of plans exist specifically for people who need coverage for major illness or injury. Although they won't do much for checkups and everyday health expenses, they can prevent you from going bankrupt because of a catastrophic incident.

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