Lynch & Belch, P.C.

Indianapolis Indiana Bankruptcy Law Blog

What can you do to avoid getting into medical debt?

It's well-known that in this country, medical debt is one of the leading causes of bankruptcy. Recently, we discussed ways to eliminate, or at least pay down, your medical debt. However, it's best to avoid getting into medical debt at all.

Large medical bills may be unavoidable if you suffer a serious illness or injury. However, with some planning and by asking questions before getting non-emergency care, you can avoid being saddled with medical bills you can't pay. Let's look at a few things you can do.

How Chapter 13 bankruptcy could save your home

It’s a financial nightmare no one wants to live through: the prospect of losing your home. But it can happen to the best of us – and often for reasons beyond our control. Perhaps you lost your job or received a devastating medical diagnosis. Maybe your credit card debt spiraled out of control. Before you know it, you’re no longer able to make your mortgage payments. Your home – the very center of your life and family – is in jeopardy.

Scary as your situation may seem, you should never assume there’s no way out. Chapter 13 bankruptcy may be a way to keep your home and get your finances back on track.

Can filing bankruptcy impact your career?

If you're considering filing bankruptcy, the last thing you should have to worry about is whether it will impact your job. You aren't going to tell your employer about your financial situation. However, what if they find out? Can they fire you?

The good news is that the bankruptcy code prohibits employers (both private and government ones) from firing or otherwise discriminating against employees because of a bankruptcy. Unfortunately, however, that doesn't mean they can't find another reason to fire someone because they're concerned about their bankruptcy.

Factors that may prevent you from filing for Chapter 7 bankruptcy

Indianapolis residents who have unsecured debts that they cannot pay often look to Chapter 7 bankruptcy as a way to gain a financial fresh start. Although it may seem as if virtually anyone can file for a Chapter 7 bankruptcy, that's not the case. There are some factors that may make you ineligible to file.

Anyone who has had their bankruptcy case voluntarily dismissed because their secured creditors requested a leave of the court may be ineligible to file once again, especially if it occurred during the past 180 days. Creditors often do this in an attempt to recover collateral.

Build better credit this summer

Now that the weather is finally warming up, there’s no shortage of people trying to work off the pounds they gained over the winter. Getting healthy is always a good idea, but why not also put some energy into getting your credit score healthy this season? It’s not as much of a challenge as you might think.

Like getting fit, building good credit will take some time. There are a few strategies that can make the process quicker and easier, though. These are three ways you can jumpstart your credit score both immediately and over time.

Why young adults have more medical debt than older ones

It might seem reasonable to assume that people in their 50s and early 60s have the largest amount of medical debt. They're at the age where their bodies are starting to give out, but they aren't yet old enough to qualify for Medicare.

However, according to one study on medical debt that used data from 2016, people of one particular age -- 27 -- were more likely to have at least one medical bill sent to a collection agency than anyone else. Some 11% of those with medical debt, by that definition, were that age.

New roles may affect the way debtors are contacted

You've fallen behind on your credit card payments due to financial insolvency and a massive debt load. You know that you need to pay, but are way over your head. Then, you start receiving texts and emails from creditors urging you to pay up.

What's going on? This may become the new normal if the proposed changes to methods of communicating with debtors are implemented by the Consumer Financial Protection Bureau (CFPB).

Will student loan debt become easier to discharge in bankruptcy?

Student loan debt has been notoriously difficult to discharge in bankruptcy. They typically have to show that repaying it would cause them "undue hardship." However, a report just released by the American Bankruptcy Institute's (ABI) Commission on Consumer Bankruptcy includes recommendations that would change that.

The report addresses a number of subjects and recommendations for changes to the bankruptcy code, which hasn't seen any major updates since 2005. In the ensuing 14 years, U.S. student loan debt has grown to a whopping $1.5 trillion.

Can you discharge your tax debt in Chapter 7 bankruptcy?

As Tax Day nears, it seems like a good time to look at whether tax debts can be discharged if you file for bankruptcy. It's possible to discharge it if you file for Chapter 7 bankruptcy, but a number of criteria need to be met.

The debt must be associated with a tax return due three or more years before the bankruptcy filing. Therefore, to discharge any tax debts from this year's tax return (assuming that you didn't get an extension), you would have to wait until April 2022

The 10 U.S. cities with the most credit card debt

Credit card debt is a national problem. The Federal Reserve reports that the total U.S. credit card debt reached more than $1 trillion in 2018. A snowballing credit card bill can quickly overwhelm you. It can seem like you will never get out from underneath it.

Frightening and frustrating as it can be, situations like this are what personal bankruptcy protection are for. Chapter 7 and Chapter 13 bankruptcy are there for people who need a fresh start and do not want credit card debt to stop them from advancing their careers or finding a decent place to live.

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Lynch & Belch, P.C.
7210 Madison Ave.
Suite B
Indianapolis, IN 46227

Phone: 317-528-9549
Phone: 317-528-9549
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