New Program Aims to Lower Medical Care Costs

Posted on June 25, 2013 by Staff Writer

It’s no secret that healthcare will be one of America’s greatest challenges in the 21st century. Due to the rising costs of medicine and the growing percentage of an older population more at risk of expensive procedures, it’s no wonder that medical bills are one of the leading reasons for personal bankruptcy. In fact, according to a survey conducted by the Harvard Law School and Ohio University and reported by Reuters, more than 60 percent of personal bankruptcies in the U.S. every year are because of medical bills. “Unless you’re Warren Buffet,” Harvard’s Dr. David Himmelstein told Reuters, “your family is just one serious illness away from bankruptcy. For middle-class Americans, health insurance offers little protection.”

This can be terrifying for any family with older members who are now considering their options. According to National Public Radio, the annual average cost of a nursing home with a semi-private room is almost $80,000—not a small bill by any means. The average annual cost of having someone to work as a home health aide is just over $20,000, which is significant as well. But a new experimental nationwide program is aiming to “keep people healthy and out of the hospital,” which will hopefully help to lessen some of these cost burdens. The program “dispatches hospital-trained nurses to patients’ homes to do whatever is necessary—manage prescription drugs, take blood-sugar readings, teach healthy eating habits or even arrange delivery of a motorized wheelchair,” according to AZ Central.

The government is calling these new initiatives Accountable Care Organizations, and Banner Health, a Phoenix-based hospital system, is among 32 organizations in the country to adopt the experimental program, according to AZ Central. These are meant for people on government-issued health insurance, but “private insurers such as Cigna and Health Net are launching similar agreements with hospitals for patients who have private health insurance.” A spokesperson for Banner told AZ Central that during the first year that the program was in operation for 51,000 metro Phoenix residents, “it reduced Medicare spending by 2.5 percent per person.”

If you or someone you know is facing bankruptcy because of high medical bills, don’t go through it alone. Contact a dedicated Arizona bankruptcy attorney today.

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Declaring Bankruptcy to Save Your Home—Can It Work?

Posted on June 23, 2013 by Staff Writer

Arizona is still ahead of the national average when it comes to the foreclosure rate, even several years after the brunt of the housing crisis is behind us. In 2013, according to Realty Trac statistics, the percentage of units nationwide that were in foreclosure was .11, while in Arizona the percentage of unites that were in foreclosure was .13. The good news is that both figures are finally at less than 1 percent, after several years of remaining higher. The good news continues for Arizona residents with the fact that houses in auction in the state are down nearly 64 percent from last year, and those that are bank owned are down 52 percent from the previous year, according to Realty Trace. Yet that doesn’t mean that all Arizona homeowners are out of the dark, and many may still be considering filing for bankruptcy in an effort to avoid losing their home. Is this a possibility?

According to Fox Business News, it’s not. “This will not stop the foreclosure, only delay it,” states Fox. “In some cases, only for a month or two.” That’s bad news for any family really desperate to keep its home. Filing for Chapter 7 does in fact stop the foreclosure procedure, according to Fox. But “the lender can make a request to the court to remove the house from bankruptcy protection, also known as a ‘relief from stay.’ Getting this relief means the lender can continue with the foreclosure process,” according to Fox. And lenders, as one may imagine, are “usually very efficient in requesting that relief.”

The one recourse a person has, according to Fox, is to attempt to modify the loan with your lender so your mortgage is more manageable. The trick is that for any loan modification to be approved, a person must have sufficient income—which is often the catch 22 for families approaching bankruptcy.

If you or someone you know is considering bankruptcy, the most important first step is to talk with a qualified professional to determine if it’s right for you. Don’t go through it alone. Contact a dedicated Arizona bankruptcy attorney today.

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Most Common Causes of Bankruptcy

Posted on June 9, 2013 by Staff Writer

Bankruptcy provides a great tool for people who are unable to dig out of financial holes. Rather than lose everything you have, bankruptcy can allow you to reclaim your life. But not all bankruptcies are brought about by crazy spending sprees. Do not let the stigma associated with bankruptcy influence your decision if your finances have gotten out of control.

According to multiple studies of the causes of bankruptcy, there are a handful of common causes of bankruptcy, one of which is excessive spending. The least common cause of bankruptcy is unexpected disasters or calamities. If a catastrophe changes your situation either by taking away your car, your job or other things you need to live, then bankruptcy can help you regain your footing on solid ground. This cause of bankruptcy only influences about seven percent of all filings.

Another cause of bankruptcy is divorce, which is how half of marriages end. From a financial standpoint, divorce can make it difficult to live the life you had before. You need to maintain two households with the income from your married life. It is also necessary to pay for legal fees, alimony, and child support if you become single again. Divorce contributes to eight percent of bankruptcy filings.

Job loss has been a very prevalent cause of bankruptcy in recent years. Almost eight percent of Americans are currently unemployed as of May 2013. These people usually pay for insurance out of pocket which can be a drain on already depleted household income. 22 percent of bankruptcies are influenced by unemployment.

By far the most usual cause of bankruptcy over the years is medical expenses. The bad news is that medical costs will continue to rise as new medicines and procedures are developed to keep us healthy. In 2013, Reuters figured that medical costs would increase by almost eight percent from 2012. When medical costs are already too expensive for most households, bankruptcies will be more prevalent. If you feel that any of these reasons is putting a strain on your finances, then consider reaching out to a skilled bankruptcy attorney from Phoenix today.

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Bankruptcy and Medical Bills

Posted on May 31, 2013 by Staff Writer

With the implementation of Obamacare getting closer, there are several questions about what the Affordable Care Act will do for Americans facing high medical bills due to an ongoing illness or disease. According to the Washington Post, “the nonpartisan Congressional Budget Office estimates that 30 million more Americans will have health insurance by the end of decade.” That’s a big number, but it doesn’t take into consideration those Americans who will indeed have coverage, but who “will still face big financial burdens after they gain insurance coverage,” a sub-sect that will likely exist, according to two new academic studies cited in the Washington Post.

According to Reuters News Service, “medical bills are behind more then 60 percent of U.S. personal bankruptcies.” U.S. researchers told Reuters that, “for middle-class Americans, health insurance offers little protection,” and even healthcare reform isn’t on the right track. Dr. Sidney Wolfe of the Health Research Group at Public Citizen told Reuters that “expanding private insurance and calling it health reform will fail to prevent financial catastrophe for hundreds of thousands of Americans every year.”

Arizona has long had one of the highest rates of both personal and consumer bankruptcies in the country. Though that number significantly decreased from 2011 to 2012—according to Arizona Bankruptcy Courts, by 22.2 percent—Arizona residents are still at a high risk of bankruptcy. In 2012, there were 27,298 bankruptcy filings in Arizona, the large majority of which were in Phoenix.

As Obamacare is implemented, everyone will be looking to see if the expanded coverage will reduce bankruptcies due to medical bills. Stephanie Woolhandler, a professor at the City University of New York, conducted research to determine this on a smaller scale after the state of Massachusetts expanded healthcare coverage, and found that “in 2009, two years after the insurance expansion took effect, just about half the debtors (52 percent) attributed their bankruptcy at least in part to medical bills,” according to the Washington Post. “In 2007, before the expansion, the number stood at 59 percent.”

If you or someone you know is considering bankruptcy because of medical bills or any other reason, don’t go through it alone. Contact a dedicated Arizona bankruptcy attorney today.

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A Study of How Sadness can affect Personal Debt

Posted on April 25, 2013 by Staff Writer

People seek different ways to deal with sadness. It seems unfortunate in the grand scheme of things, but a study shows that sadness can have a negative effect on a person’s financial bottom line and also further deteriorate their mental state.

In a study run by students Jennifer Lerner of Harvard’s School of Government and Elke Weber and Ye Li of Columbia reviewed the connection between sadness and debt. The results were published in the Psychological Science journal last year.

They came up with a term called “present bias”. The unhappiness of people makes them value the present more so than the future. This leads them to put more importance on instant gratification rather than the long term consequences. So it seems natural that “retail therapy” would be an avenue that people would use to make them feel better.

The bad news is that when debt becomes a problem then the sadness can turn into depression. Especially if the debt can’t be turned around and necessitates a bankruptcy. “Many of us confuse our self-worth with our net-worth,” clinical psychologist Bradley Klontz said. “As such, financial problems can deal devastating blows to our self-esteem. Bankruptcy can lead to feelings of guilt and shame, and cause us to isolate from our family and friends out of embarrassment.”

For some people, it has to get worse before it can get better. Filing for bankruptcy can alleviate your money issues and allow you to have a fresh start If you feel like bankruptcy is your best option, then contact a legal professional who can help you through the process. An experienced bankruptcy attorney in Phoenix can show you the options for turning around your situation so contact them today.

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Bankruptcy and Employment

Posted on February 13, 2013 by Staff Writer

Many people who have to file bankruptcy have obvious and well-founded fears of losing employment after filing. Section 525 of the Bankruptcy Code, approved in 1943, ensures that no governmental unit can terminate employment or discriminate, with regards to employment, for a person having filed bankruptcy. And yet a U.S. Court of Appeals decision issued in 2011 set a precedent that could hinder this decades-old protective law. In Myers v. Toojay’s Management Corp., an appellate court in Florida decided that while government employers may not deny employment to an individual who has filed for bankruptcy, this does not apply to private employers. The Bankruptcy Code is murky, and other courts may not uphold this controversial decision. Yet anyone who files for bankruptcy should be aware of its implications.

Regardless of this new ruling, most bankruptcy attorneys agree that they’ve never heard of a private employer denying employment based solely on a prior bankruptcy filing. Losing employment after filing for bankruptcy but independent of the filing is another story, and most definitely one many would consider absolute worst-case scenario. If this happens to you, the most important first step is to contact the bankruptcy attorney who handled your bankruptcy filing. He or she will be able to help you explore options, especially if you filed a Chapter 13. You may be eligible to temporarily waive monthly payments while you seek other employment.

According to U.S. Bankruptcy Court statistics, there was a 22 percent drop in the number of bankruptcy filing in Arizona between 2011 and 2012. This figure includes both personal and corporate, but is good news regardless for Arizona residents. Despite the drop, many individuals are still dealing with bankruptcy, and could have subsequent employment concerns because of it. For this and any other reason, if you or someone you know is considering bankruptcy don’t go through it alone. Contact a dedicated Arizona bankruptcy attorney today.

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New Bankruptcy Exemption in Arizona

Posted on December 2, 2012 by Staff Writer

Many people in Arizona have found that bankruptcy is the only option left to save their financial future. The silver lining about bankruptcy in Arizona is that there are exemptions in place to protect the debtors and their possessions. Typical exemptions include a person’s car (to a value of $5,000) and homestead property (to a value of $150,000). Recently, the Ninth Circuit Court of Appeals had to examine an exemption concerning the cash value of life insurance policies.

Arizona has a current exemption concerning the cash surrender value of life insurance policies. The statute states that these policies are only exempt if “named as beneficiary the debtor’s surviving spouse, child, parent, brother or sister, or any other dependent family member”. The case which helped change this decision was concerning an adult non-dependent daughter who was named as a beneficiary.

The dependency issue was a huge tipping point for this case. The trustee of the bankruptcy was trying to reverse the exemption due to the non-dependent status of the daughter. Since the daughter is grown, this particular case fell outside of the statute. Ultimately, the appellate court found that the exemption should include independent children who are listed as beneficiaries.

As you can see the bankruptcy laws of Arizona are complex and also being updated constantly. That is why it is absolutely imperative to have the best legal counsel available. If you are serious about the possibility of a bankruptcy, then you should definitely contact an experienced bankruptcy attorney in Phoenix to start discussing if bankruptcy is your best option.

The Financial Picture in Arizona Starting in 2013

Posted on November 27, 2012 by Staff Writer

There have been lots of reports lately about a “fiscal cliff” that we are coming closer to as a country. The term was coined by Federal Reserve Chairman Ben Bernanke during an appearance in front of Congress. It refers to the problem which the national government will face at the end of 2012. The tax cuts put in place by the Bush and Obama administrations will be over as of midnight on December 31^st.

Payroll taxes will increase by 2% for workers. Taxes will also increase in order to fund Obama’s new healthcare initiative. There are other tax breaks which are set to expire as well as tax rates which are set to increase. The worry is that the onslaught of these new taxes will stifle the resurgence of America’s economy and send it back into a recession. Lawmakers are set to make some difficult choices soon which will affect everyone.

This will also force consumers and businesses to make some difficult decisions. In Arizona, one of the choices available for financial problems is declaring for bankruptcy. If your financial situation is bad right now, within the next year, it could be even worse. There is still an opportunity for the government to step in and change the financial future of the country. While you cannot control the economy of the nation, you can control your financial future. Contact an experienced bankruptcy attorney in Arizona who can assist you in giving you a personal financial picture and whether or not bankruptcy is your best option.

The Relationship between Bankruptcy and Divorce

Posted on November 5, 2012 by Staff Writer

The process of divorce is very clear about the division of property. As expected, assets that are held as a couple are separated to each party based upon the circumstances. For example, if a particular spouse is unable to work, they may be entitled to more of the marriage estate. Illinois is an equitable distribution state which doesn’t always mean equally half to each side. What is not often thought about is about how debts that are accrued in marriage are also divided according to these standards.

Financial issues are a big reason why couples seek divorces. Each spouse could have different spending habits and drive the union to staggering debts. This is why it is not uncommon to see people site divorce as an influential factor in filing for bankruptcy. Most lawyers would recommend filing for bankruptcy liquidation prior to filing divorce paperwork because of how easy it is divide property and debt after a bankruptcy cleans up the mess. Since the couple is filing together, there would only be one set of paperwork fees. If there is no conflict of interest, one bankruptcy lawyer might be able to assist both parties.

To ensure a fresh start after your divorce, it might be prudent to consider a bankruptcy as well. If you can talk to your spouse about it that would be the first step. Contact an experienced bankruptcy attorney in Arizona who can begin looking at your case, to see if you can benefit from filing for Chapter 7 bankruptcy before you file for divorce.

Arizona Bankruptcies Continue to Fall

Posted on October 8, 2012 by Staff Writer

New data shows that bankruptcies in Arizona have continued to decrease over the last year. Filings in the Phoenix area have fallen at a double digit pace year over year. The US Bankruptcy Court in Phoenix released that in August of this year, only 1,809 people filed for bankruptcy compared to 2,431 in 2011. That decrease is 26 percent, continuing the streak of 14 consecutive double digit decreases.

The news comes as a shock to the citizens of the valley. An independent survey of 500 residents measured financial optimism at a record low not seen since June 2009. This is due partially to the fact that the employment market has yet to make a full recovery. Factors such as improvements in housing prices, employment growth, strong corporate performances and other factors seem to ease private debt.

An example of the reduction of private debt is overdue credit-card balances. Valley residents’ debts are down 16 percent compared to the past year through August to an average of nearly $5,000. Credit-card debt is a major kind of debt which consumers seek to ditch by declaring for bankruptcy. The same is true for mortgages and student loan balances over the past year for Phoenix residents. Luckily the news about Phoenix is merely a microcosm of the whole state of Arizona. Arizona is also seeing a decline in bankruptcy filings.

While this is good news for people in Arizona, it doesn’t mean they’re out of the woods yet. There are still people who need a fresh start while the economy is recovering. If you believe that bankruptcy is your only option, contact an expert bankruptcy attorney in Arizona today.