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Michael D. Hart, P.C.
Helping You Move Forward Free Of Financial Problems
540-627-6520
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Posts tagged "Chapter 7 Bankruptcy"

What to consider when filing for Chapter 7 bankruptcy

Those in Virginia and throughout the country who are struggling to manage their finances may find it helpful to file for Chapter 7 bankruptcy. Although it will impact a person's credit score, it may also make it easier to create the foundation for a stronger financial future. One of the advantages of filing for a liquidation bankruptcy is that it only takes about three to six months to have debts discharged.

Complicated insurance networks result in surprise medical bills

Even when Virginia patients make an effort to use medical services in their insurance networks, they might fail to avoid out-of-network charges during hospitalization. Many patients understand that costs could be higher from out-of-network providers, but they may not realize that unexpected medical bills can result when they use in-network hospitals. Hospital administrators often cannot answer questions about out-of-network professionals and laboratories providing services within their hospitals due to complicated insurance contracts.

Pros and cons of a Chapter 7 bankruptcy

Virginia consumers who are struggling with debt might wonder whether they should file for Chapter 7 bankruptcy. In order to file for Chapter 7, they must pass what is known as a "means test". This means that their income must be below a certain amount, which is usually the median income for the state. However, there are additional considerations in determining this income. For example, certain expenses may be taken into account and deducted from overall income to determine eligibility.

How to file for Chapter 7 bankruptcy

Chapter 7 bankruptcy may help Virginia residents and others seek relief from debt. The process begins by filing paperwork that outlines the debts and assets a person has. Debtors may also be required to produce pay stubs and other financial information to the bankruptcy court. Documents needed to petition for protection from creditors can typically be obtained for free. Prior to doing so, an individual will need to take part in a credit counseling session.

Medical debt still driving bankruptcy despite ACA

Spiraling health care costs and the overwhelming debt to which it can condemn families been a problem in the United States for many years, and Congress took action to address the issue by passing the Affordable Care Act in 2010. However, a recent study published in the American Journal of Public Health suggests that the landmark legislation has not had the desired effect. In the first major study of its kind since the ACA became the law of the land, researchers discovered that medical debt still plays a role in about two-thirds of the personal bankruptcies filed in Virginia and around the country.

A different solution to asset disposition in Chapter 7

Going through a Chapter 7 bankruptcy can be one of the most stressful moments in a person's life. One way that this process becomes even more burdensome is the way real estate is treated in the disposition process. While a homeowner can claim a homestead exemption, meaning the property can't be dissolved to resolve the debt, that does not prevent a home from being foreclosed upon if the borrower doesn't have the income to cover the mortgage payments.

Filing Chapter 7 bankruptcy for a second time

Those who are struggling to repay their debts may want to file for bankruptcy protection. However, there are certain criteria that must be met to do so. For instance, those who have filed for Chapter 7 bankruptcy protection in the past must wait eight years to file another such case. To convert a Chapter 7 case to a Chapter 13 case, four years must have passed from the date in which the Chapter 7 case was filed.

Credit card debt can mount unexpectedly

Many people in Virginia are struggling to make ends meet, and they may find themselves stretching their credit card balances in order to do so. Credit card debt is growing across the United States, and the reasons can vary from financial emergencies to appealing offers from credit card companies. According to the Federal Reserve, revolving consumer debt, including credit card debt, increased across the country by 1.5 percent in July 2018. According to the national bank, American consumers' revolving debt totals $1.037 trillion.

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Roanoke, VA 24011

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