Doctors Facing Bankruptcy

Posted on July 29, 2013 by Staff Writer

It’s not just the unemployed or underemployed that are still dealing with the ripple effects of the financial crisis. According to CNN Money Magazine, “as many doctors struggle to keep their practices financially sound, some are buckling under money woes and being pushed into bankruptcy.” The American Bankruptcy Institute’s health care committee, chaired by Bobby Guy, has recently noted a spike in bankruptcy filings by physician practices. Guy told CNN Money that there was a period in early 2013 when there were eight filings in a row, which before would have been considered unusual.

But it’s not doctors working in large hospitals or practices that are necessarily facing financial insolvency. Chapter 11 bankruptcy for physicians is more common when the doctor has a small private practice. Guy told CNN Money that “the weak economy has taken a toll on doctors’ revenue as consumers cut back on office visits and lucrative elective procedures.” There is also the issue of “shrinking insurance reimbursements, changing regulations, and the rising costs of malpractice insurance, drugs, and other business necessities” for a doctor’s practice, according to CNN Money.

It’s not only doctors who are affected by their practices closing—Chapter 11 does, of course, affect the filer first and foremost, but in areas where there’s only one small doctor’s practice, its closing can severely affect the community. “Having a cancer practice closer,” for example, “can be debilitating to a community,” according to CNN Money. An oncologist in Connecticut, who had had a successful solo practice for years, told CNN that his revenues began to fall when “reimbursements for treatment and drugs” starting shrinking. While he referred his patients to larger area hospitals, his practice closing likely had a severe affect on them as well. And it’s not just specialists facing bankruptcy. Primary care doctors “face similar challenges,” according to CNN Money. Fewer patients able to afford care means less profits for doctors.

If you or someone you know is a doctor who is facing financial insolvency, bankruptcy may be the best option. Don’t go through it alone. Contact a dedicated Arizona bankruptcy attorney today.

Chapter 13 Bankruptcy

Posted on July 29, 2013 by Staff Writer

If someone has gone into personal debt, he or she will most likely file under Chapter 7 bankruptcy, however, Chapter 13 is an option as well. Under Chapter 13, the debtor is allowed a three to five year payment plan in which time he or she can pay back all debts.

Chapter 13 bankruptcy is also called a wage earner’s plan because it is specifically for those who have a high enough monthly income to pay back the debts. If the debtor’s monthly income is less than that of the state’s median, the plan will be three years, if it is higher than the state median, the plan will be five years.

Along with creating a payment plan for the individual, the courts also forbid any debt collectors from further pursuing the debts owed to them by the debtor during the length of time that the payment plan continues.

One of the most important advantages of filing under Chapter 13 is that it will save your home from foreclosure, adding mortgage payments to the payment plan.

Chapter 13 also “acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes them to creditors,” according to the U.S. Federal Courts web page. This form of bankruptcy protects the debtors from having to deal directly with the creditors.

Debtors also have the opportunity under Chapter 13 to reschedule secured debts and extend those payment plans over the length of time for the bankruptcy payment plan set by the courts. Lengthening the payment plan may lower the individual payments as well as simply give the debtor more time to pay.

If you are considering filing for bankruptcy, but do not know which Chapter to file under or where to begin at all, contact Arizona bankruptcy attorneys for assistance. These experienced bankruptcy attorneys will assist you in making the best decisions about your money and payments to keep your home and other in important assets Arizona today.

Alternatives to Chapter 7 Bankruptcy

Posted on July 27, 2013 by Staff Writer

When someone must file for personal bankruptcy, they often choose to file Chapter 7 Bankruptcy, under which a person’s debts are forgiven. It is a long process, during which certain assets are allowed to be kept and others must be liquidated to pay off the debts. A Chapter 7 Bankruptcy stays on a person’s record for 10 years, potentially ruining credit and making it more difficult to get loans.

When someone compiles a large debt, it is important to know that there are many options. If you are considering filing for bankruptcy and you are engaged in a business, you may petition under Chapter 11 bankruptcy. If you want to file for personal bankruptcy and you are confident that you can pay off your debts within the five year time limit, you may file for Chapter 13 bankruptcy, under which a payment plan will be created for you to pay everything off.

Chapter 13 allows debtors to keep their homes from foreclosure as well. This is also a good option because many courts will dismiss a Chapter 7 petition if the debts that have been gathered are mostly consumer debts and not business debts. Chapter 13 helps you to pay off your debts, while putting any additional payments on hold, preventing your debt from increasing while you are in bankruptcy.

When filing for Chapter 7 bankruptcy, one of the first numbers that is looked at is the current monthly income of the debtor. If that number is higher than the state’s median monthly income, another test must be used. The “means test,” which is required by the Bankruptcy Code, will determine whether or not filing for bankruptcy is truly necessary. The only way to continue on with the bankruptcy filing at this point is if the debtor can prove to the courts that he or she has special circumstances that cause additional expenses.

If a debtor does not pass the means test, the bankruptcy will be dismissed or converted to Chapter 13, under which the debtor must pay off all of the debts with a payment plan.

If you are in debt and are considering filing for bankruptcy, be sure to consider all of your options and contact a bankruptcy attorney for assistance. Arizona bankruptcy attorneys can help you decide what to do today.

Bankruptcy Exemptions

Posted on July 25, 2013 by Staff Writer

The Bankruptcy exemptions are unique to each state. They are normally the same exemptions used to apply to creditor collection lawsuits. The exemptions, when used in a bankruptcy filing, can be more complex than they appear. Some of the exemptions can be used twice, once for each spouse. Some of the exemptions can only be used under certain circumstances. Different trustees treat exemptions differently. Nobody will be coming to your house to count your forks to assure you have been specific and accurate with declaring you bankruptcy exemptions, but unless the numbers are within a certain range, the trustee will likely be alerted to some fraud.

Running afoul of the exemption declaration is easy, but it is also easy to avoid. Like most things, experience is invaluable. There is no reason to step in front of such harm and scrutiny as making a mistake on your bankruptcy exemptions. An experienced bankruptcy attorney will be able to guide you through the filing and give you peace of mind that you will not lose property that could have been declared exempt, or worse yet get fined or prosecuted if the trustee thinks you did it on purpose.

An experienced bankruptcy lawyer is your best friend in unfamiliar times. You can schedule a free appointment to talk to the bankruptcy attorney over the phone or in person. There are payment plans available and the consultation is free. A great bankruptcy lawyer can help you through this. GET FREE HELP NOW.

Getting back on your Feet after Bankruptcy

Posted on July 23, 2013 by Staff Writer

As you may have learned by now, having to file for bankruptcy does not mean the end of your financial world. It is quite the opposite; you have the opportunity to have a fresh start after filing bankruptcy and having your debts discharged.

Create your Budget

Part of recovering from your bankruptcy is getting back on track. Create a budget that includes the items that need to be paid monthly. Make sure that you also cut the things that you do not need to have until you are sure that you are not taking on expenses that you cannot afford. This is the time to restructure your finances and ensure that all of you payments are timely to reflect a financially responsible comeback from bankruptcy.

Pay Cash when you can

Whenever you can, don’t use credit. You do not want to overspend and end up in the same type of situation that led to the bankruptcy. The way that you treat your finances now will heavily weigh on how you will look to potential creditors.

Stay away from Large Loans

While it is important to establish new trade lines, you want to stay away from large loans such as car loans. Until you establish that you are credit worthy, your interest rates will be higher because you will be a risk to new creditors. This higher interest rate will mean that you are paying more toward the interest of the loan than the principle. Depending on the type of loan that you are looking for, the higher interest rate can mean a significantly higher payment for you.

If you have questions about how to get your credit back on track once your debts are discharged, your Arizona bankruptcy attorney can assist you with questions as well as make good suggestions to get you back on track for the long term.

Bankruptcy Exemptions to Keep Wedding Ring

Posted on July 21, 2013 by Staff Writer

Bankruptcy exemptions will likely allow you to keep your wedding rings. Here’s how:

A bankruptcy exemption describes an asset that is exempt from the bankruptcy process. An asset identified as an exemption to bankruptcy is an asset you can keep.

These exemptions can be found listed in most bankruptcy codes as well as in Arizona Revised Statutes. The exemption for a wedding ring is quoted as follows: “All engagement and wedding rings not in excess of an aggregate fair market value of one thousand dollars.” This begs several questions.

What is fair market value? The bankruptcy code will also talk about replacement value. We all know, or at least suspect, that the normal makeup of a jewelry store is several times the value of the ring. The appraisals they provide are usually more disingenuous and just lead to higher insurance premiums instead of reflecting the actual value of the ring. Let’s look at it from a very pragmatic perspective. What would it really cost to replace the ring? Buying it a jewelry store is something love-struck patrons do. If you found one, could you replace it from a pawn shop? What would it really cost? What would the pawn shop really take? It is a used ring. You cannot usually buy used rings at the mall. Therefore, used rings at a pawn shop might be your best indication of fair market or replacement cost.

Unless your ring is declared on an insurance policy or the U.S trustee has reason to believe it is worth a large sum, it might occur to you that the receipt is not registered anywhere and how do they know you had a ring anyway. You probably had to sell it to pay your bankruptcy lawyer. You would be correct in all of these thoughts. But try not to fall into this trap. It is never a good idea to wear jewelry to a bankruptcy hearing, but the minute you do not declare an asset, you are exposing yourself to a lot of liability you just don’t need. You are signing under oath that you have declared all of your property, and perjury is such an ugly word.

If you are having trouble with the value of an asset compared to the exemption, don’t forget to subtract any money owed on the asset. In any event, you should probably talk to a qualified bankruptcy attorney. There are many ways to deal with the issue. Make sure you do it right. GET FREE HELP NOW.

How to avoid filing Bankruptcy Again

Posted on July 19, 2013 by Staff Writer

Filing bankruptcy can give you the fresh start that you are looking for. You are finally free of debt, you are not in collections, and you don’t have bill collectors ringing your phone off the hook. It feels great to feel free but the most important thing is to be financially responsible. Recent reports showed that of all of the bankruptcies filed in 2011, 28 percent of them were repeat filings. Here are a few steps that you can follow to ensure that you are not a part of this statistic.

Be Careful with Credit

Part of having good credit is having positive trade lines on your account. The easiest way to establish these positive reports is my establishing credit. The most common way to establish credit and have it reported is through a credit card. Many credit card companies will start sending offers as soon as a person has their bankruptcy discharged. Treat these new credit cards with respect. Use them only when needed and pay them off in full each month.

Seek Preventative Medical Care

The highest debt for many people is for medical care. A way to keep medical debt down is to go see your regular doctor as soon as you begin feeling ill. Trips to the emergency room can be much more costly and can lead to a hospitalization. The office visit charge is usually cheaper and if you are strapped for cash, many offices allow you to make interest free payments.

Live within your Means

It is easy for people to be carried away into living beyond their means. Create a budget and stick to it. Diligent budgeting can also make it feasible to purchase a luxury item for yourself occasionally. If you have questions regarding the discharge of your bankruptcy or starting all over, your Arizona bankruptcy attorney can answer those questions for you.

How Filing Bankruptcy Will Affect Child Support

Posted on July 16, 2013 by Staff Writer

There are various reasons why a person may file bankruptcy such as illness, loss of a job, or a divorce, but getting out of paying child support should not be a reason. When a person files bankruptcy, if qualified, certain debts are forgiven. However, with child support this obligation cannot be forgiven. That means that although a person can file bankruptcy if he or she has a court order to pay child support, that obligation will not be dismissed because of the bankruptcy.

Likewise, if you receive child support and the non-custodial parent files bankruptcy, he or she will still be required to pay child support. However, having other debts forgiven may make meeting the child support obligation easier for non-custodial parents.

Although child support is never forgiven, Filing chapter 13 may provide a temporary stay, which means that collection efforts must cease during the process. In addition, filing bankruptcy could provide necessary relief if you are overcome by other debt. If you qualify, Chapter 7 would forgive the debt, whereas a chapter 13 will offer a reschedule of lower payments to your creditors. Once you have filed, your creditors will be notified and must not contact you during the process. Reestablishing credit after filing bankruptcy is also possible.

The process for filing bankruptcy can be complicated. Some people may find the process intimidating and therefore may never consider it. For some Arizona residents and others, filing is their way out from under a mountain of debt. If you or a loved one is considering bankruptcy as a means to a fresh start or if you have questions as to how doing so could affect child support and outstanding debts it may be time to contact an experienced bankruptcy lawyer today. The consultation is free.

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Bankruptcy isn’t a Band Aid for Bad Financial Habits

Posted on July 13, 2013 by Staff Writer

Bankruptcy can be the right solution for those individuals who may need a way out of overwhelming debt, but it is not a band-aid for poor habits. One 28 year old learned that choosing to file bankruptcy is not the fix for money woes. It was made clear that changing those habits will ensure that filing bankruptcy would not be in vain. Not changing these habits will only put one back in a similar financial situation and bankruptcy may not be an option again.

Some people may think that filing bankruptcy will solve money problems when its only focus is on outstanding debt. Bankruptcy does not take care of future debt accumulation. The only thing that can prevent that is better spending habits. Taking a long hard assessment of outstanding debt will also help you determine if bankruptcy is the best option or if debt consolation is best.

Before making a decision to file bankruptcy, it is be best to consider all available options. For example, if the statute of limitation on a credit card debt has passed, this may not be a debt you are obligated to pay. However, it will remain on your credit for seven years. Statute of limitation begins from the time of the last payment or last use of the account whichever is later. Some creditors are willing to settle for 20% of the balance to satisfy the debt. If you are financially able to pay these creditors, bankruptcy may not be the best option.

However, larger accounts where the statute of limitation has not run its course, such as a reposed vehicle or medical bills bankruptcy protection may be in order. Filing a Chapter 7 bankruptcy could resolve all eligible debt if you qualify. Contact a qualified bankruptcy attorney to determine your options.

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How Does Filing Bankruptcy Affect Your Children?

Posted on July 10, 2013 by Staff Writer

Financial woes come and sometimes you have to bite the bullet and file for bankruptcy. Feeling it is an adult issue, you might not have thought about how it exactly affects your children now and in the future. Taking a step back from yourself and looking at how it will affect your children is wise before filing for bankruptcy.

You have done everything to provide for your children from opening a savings account to providing clothing and bedroom furniture. In a legal sense, all property, including your children’s is considered yours. Depending on which bankruptcy you file, you could keep all of your things (Chapter 13) or only things that are considered exempt (Chapter 7). However, bankruptcy does not really look at used property such as clothing, furniture and household items as valuable items, so it is close to safe to say you will be able to keep most of your children’s belongings. However, your children’s bank accounts may not be safe. Legally the money belongs to the children, so no money can be touched by creditors. With that in mind, recommendation is to not transfer any of your personal money into their account prior to filing for bankruptcy, as it looks suspicious and a Chapter 7 trustee can attempt to take all of the money in the account.

Child support is not dischargeable in bankruptcy and must still be paid. Child support is considered a priority debt, and is paid out when assets are sold out in Chapter 7. In Chapter 13, child support is paid before other creditors.

Paying for school also has some stipulations. If you are to invest in a 529 Education Fund, it must be for your child, stepchild, grandchild or step-grandchild, and deposits must be made 365 days prior to filing for bankruptcy. If you made deposits between 365 to 720 days before filing you are exempt $5,850 per child, and after 720 days or more before filing everything is exempt.

If your child attends a private elementary or secondary school, it will depend on your Chapter 13 case whether or not you will be allowed to continue paying for that tuition. A maximum of $147.92 per month per child will be allowed.

Lastly, financial aid like Pell Grants and Stafford Loans do not affect your child. However, credit based financial aid as in Parental Loan for Undergraduate Students (PLUS) and Graduate PLUS loans are not truly available if you have filed for bankruptcy within the past 5 years. But with that, your child then is more able to receive Stafford Loans.

If you are considering filing for bankruptcy, find the best representation in a qualified Arizona bankruptcy attorney today to help you through the process.