• Obamacare May Reduce Some Large Medical Bills, But Not Everybody Can Be Protected

    A Harvard study published in 2005 found that nearly two-thirds of bankruptcies were linked to illnesses and medical bills . “The cost of health care now causes a bankruptcy in America every 30 seconds,” President Obama told a March 2009 summit that marked the starting point for the Patient Care and Affordable Care Act (ACA), commonly referred to as Obamacare. “By the end of the year, it could cause 1.5 million Americans to lose their homes.”

    The US Supreme Court’s decision to uphold the constitutionality of the health reform bill has given many families hope that they will not find themselves going bankrupt because of medical bills. However, a Salt Lake Tribune story published on October 22, 2012, noted that “the pioneering reform law in Massachusetts upon which federal reform was built may have kept debt in check, but it hasn’t solved it.” The Tribune reported that two surveys have shown no significant change in the percentage of residents struggling with medical debt.

    Mark Rukavina, a former consumer advocate and founder of a hospital advisory group, Community Health Advisors in Massachusetts, told the Tribune that medical debt is a problem that affects everyone but the extremely wealthy, and it is a matter of bad luck for the people who incur it. “Health reform will probably succeed at reducing many of the large bills,” Rukavina told the Tribune. “But there will still be out-of-pocket costs that eat into people’s budgets.”

    Mark Rieger, a vice president at Gateway EDI, a St. Louis-based company that sells software to help doctors better manage their bills, told the Tribune that it used to be that no more than 9 to 10 percent of a physician’s income came directly from patients. In some parts of the country, that figure is now close to 20 to 30 percent. However, Rieger told the tribune that health care providers “are only about 50 to 60 percent successful on collecting on patient responsibility.” This has led to more clinics and hospitals becoming “less tolerant of past-due balances.”

    Many ACA provisions will not go into effect until 2014, but you should take action now if your family is struggling because of medical expenses. If you file Chapter 7 bankruptcy , it is possible to wipe out your medical bills in a matter of months. If you enter a Chapter 13 repayment plan, you may be able to have your medical debt discharged without having to pay the full amount. If you want to know which option would work best for you, contact our firm at (866) 930-7482 or complete the form on this page to see how our Chicago bankruptcy lawyers can help.

    Benjamin Brand Services – Chicago bankruptcy lawyers

  • US on Pace for 70 Percent Increase in Foreclosure Rescue Scams in 2012

    This is a 2008 documentary produced by the Northwest Justice Project about foreclosure rescue scams. Four years later, these schemes remain a real problem, as the Chicago Tribune reported on October 19, 2012, that the Treasury Department’s  Financial Crimes Enforcement Network said reports of foreclosure rescue scams rose during the first half of the year. “Nationally, if the reports of suspicious activity continue at their first-half pace, the total for 2012 could be as much as 70 percent greater than in 2011,” the Tribune reported.

    Debra Olson, executive director of the DuPage Homeownership Center, told the Tribune that she thinks there are “plenty of incidents of scams that are never reported” because people are embarrassed. Olson told the Tribune that she believes that there are people who have been taken advantage of, but do not even know it. Many homeowners throughout the country in need of foreclosure help paid several thousand dollars to someone promising to help them save their homes, realizing too late that they were duped.

    “By the time people come to us, more than likely they’ve been the victim of the fraud,” Olson told the Tribune. “The sad thing is by the time they come to us, they’re so much farther in arrearage.”

    As the Tribune noted, “while authorities might be able to shut down bogus companies and order them to pay fines and restitution, it is often too late for victims.” Michael Dickman, an attorney at the Legal Aid Society of Metropolitan Family Services in Chicago, estimates he is working on 150 cases. Dickman told the Tribune, “It’s truly like we’re standing behind a dike and we have 10 fingers and there’s 100 holes in the dike.”

    If you are facing foreclosure, do not let a bad problem become worse by falling victim to one of these rescue scams. Filing Chapter 7 or Chapter 13 bankruptcy can be a legal way to stop foreclosure proceedings, end debt collector harassment and reorganize your finances. If you are facing foreclosure, it is in your best interest to contact our firm at (866) 930-7482 or complete the form on this page to let our Chicago bankruptcy lawyers see what Chapter 7 or Chapter 13 bankruptcy could do for you and your family.

    Benjamin Brand Services – Chicago bankruptcy lawyers