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We hate to see anyone feel bad about filing bankruptcy. Every day we meet with people at our Portland, Salem and Sandy office who feel horrible about filing. In almost all cases, filing is completely beyond their control.
My guess is that if you were to take a poll in Oregon and ask participants why people end up filing bankruptcy, a significant percentage would identify a failure to live within a budget as the primary cause of bankruptcy filings.
The reality though is that this is just rarely the case. In fact, the greatest contributing factor for bankruptcy filing isn’t willful spending, but medical debt. Since medical debt is something that is virtually impossible to plan for or anticipate, most bankruptcies are beyond the filer’s control.
Roughly twenty-five percent of Oregonians struggle to pay their medical bills. This includes Oregonians who have insurance. Every year nearly 40% of all Americans take on substantial medical debt.
According to the New York Times, one in five Americans with medical insurance has difficulty paying their medical bills over the past year. It will, therefore, come as no surprise that medical debt is the No. 1 source of personal bankruptcy filings in the state of Oregon.
What’s particularly sad is that most of the people who file bankruptcy as a result of medical issues still blame themselves. Many bankruptcy filers with medical issues went to extreme lengths to try to cope with their medical debts before filing bankruptcy, emptying 401k plans and taking on second jobs or nearly killing themselves working overtime.
Many Oregonians think that out of control credit card spending is why they are having to file bankruptcy, forgetting that the balances they are carrying are largely for hospital bills, or that their credit card balances have increased because they have had to use all their disposable cash to pay the family physician.
Bankruptcy is almost always caused by real life problems beyond our clients’ control. You can’t really budget for medical problems, divorce and job loss. There is no need to feel bad about filing. In fact it is almost always a complete waste of time.
The time to book an appointment to come in and see us about your debt problems is now. Book an appointment at any of our offices in Portland, Vancouver or Salem so that we can figure out the next logical step for getting you out of debt. If your schedule just doesn’t make it possible to come in right now, you can always set a phone or video appointment to connect with us. I am always available to do these for first time consultations over the weekend as well.
The post DON’T FEEL BAD ABOUT FILING BANKRUPTCY appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.
In 2005, lawmakers passed the Bankruptcy Abuse Prevention & Consumer
Protection Act (BAPCPA) and made several significant changes to U.S. bankruptcy
laws. BAPCPA affected both consumer and business bankruptcies by creating
a new test to determine who is capable of paying back what they owe, and
what bankruptcy chapter they are eligible to file under.
Today, any person who chooses to file for
bankruptcy must first take the bankruptcy means test. This income-based test will
evaluate a person’s financial situation in order to determine if
they can file for
Chapter 7 or
Chapter 13 bankruptcy.
The means test primarily exists to limit the use of Chapter 7 bankruptcy
to only consumers and businesses that need it most. The means test will
work by analyzing your monthly income and disposable income and determining
if you have the means to pay back your debts.
- Monthly Income – The means tests compares your monthly income to the median monthly income
in Texas. If your income is less than the state’s median income,
you qualify for Chapter 7 bankruptcy. If your income is more, your disposable
income will be evaluated to determine if you have the resources to make
payments on your debts. - Disposable Income – Your disposable income includes any funds leftover after paying monthly
expenses. If you don’t have enough disposable income to make monthly
payments toward your debt – according to the means test – you qualify
for Chapter 7 bankruptcy. If you do have the money to make payments, however,
you will likely have to file under Chapter 13 bankruptcy.
The
means test is only one component of the bankruptcy and debt relief process our attorneys
at Allmand Law Firm, PLLC can help you understand. Our lawyers understand
that every client and financial situation is unique, and we take the time
to help each client choose the path that is best for them.
If you have questions about gaining control of your finances and which
Chapter of bankruptcy you may be eligible to file under,
contact our firm for a FREE financial empowerment session. Our bankruptcy lawyers serve
clients in Dallas and Fort Worth.
The post What is the Bankruptcy Means Test? appeared first on Allmand Law.
Two years after bankruptcy, Jim gets 3.25% car loan Just got an email from Jim, who filed Chapter 7 bankruptcy with me in 2015. His case was approved and discharged in May 2015. In August 2017, he got a car loan at 3.25%. I tell people to try to get three years after the bankruptcy, to […]
Two years after bankruptcy, Jim gets 3.25% car loan Just got an email from Jim, who filed Chapter 7 bankruptcy with me in 2015. His case was approved and discharged in May 2015. In August 2017, he got a car loan at 3.25%. I tell people to try to get three years after the bankruptcy, to […]
The post Two years after bankruptcy, Jim gets 3.25% car loan by Robert Weed appeared first on Robert Weed.
Two years after bankruptcy, Jim gets 3.25% car loan Just got an email from Jim, who filed Chapter 7 bankruptcy with me in 2015. His case was approved and discharged in May 2017. In August 2017, he got a car loan at 3.25%. I tell people to try to get three years after the bankruptcy, to […]The post Two years after bankruptcy, Jim gets 3.25% car loan by Robert Weed appeared first on Robert Weed.
Wynn at Law LLC always encourages estate planning clients to check who they’ve elected as beneficiaries of their accounts and policies. Not all assets are distributed by or through a will. Some accounts, such as retirement funds and life insurance policies, let owners name beneficiaries for that particular asset.
Here are a couple of examples where missing or ‘wrong’ beneficiary listings can be a hang up for your decedents.
No named beneficiary. These days with paperless documents, most insurance agents can’t click OK on your policy if the beneficiary field is left blank. Older policies – not the case. You may have left it blank because you were in a rush, didn’t see it, or thought you would fill it in later. Now is later. Without a named beneficiary, an account will need to go to probate court, where a judge will decide who gets the money.
Former spouse named as beneficiary. Face it, surviving a deceased spouse or divorcing a living one involves tons of legal paperwork and decisions. One many people forget during this life change is to go back and designate another beneficiary. Ex-spouse doesn’t mean ex-beneficiary… a view that was recently upheld by the Supreme Court. Named beneficiaries get the proceeds, no matter how estranged the relationship. Imagine the family chaos following your passing if the ex got the money you wished for your current spouse or your children.
It’s a good idea to review three things: Old pensions in which you are vested, 401(k) plans still sitting at former employers, and every life insurance policy still in force with your name on it. By the way, that includes annuities, which are life insurance contracts. Wynn at Law LLC likes to have clients review beneficiary information after every life change such as retirement, the births of children or grandchildren, marriage or divorce. You want your money to go where you want it to go.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Robert Churchill., used with permission.
The post Check your beneficiaries lately? appeared first on Wynn at Law, LLC.
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Learn more about how Bankruptcy works and what you need to know.