Health, Health Care Insurance and Bankruptcy

Imagine for a moment that your health has taken a turn for the worse. You need extensive medical attention and expensive treatments. Would you be prepared to account for these medical costs? Or would you or a family member ultimately have to deal with this financial burden?

Surely, you would not want to suffer the consequences of paying big medical bills on your own. This is why health insurance is so important. A Harvard study conducted in 2001 found that medical bills caused half of all bankruptcies. Therefore, you should make sure that you have some form of medical insurance. You should also make sure that your money is well-spent on insurance that meets your needs.

Insurance Provided by Employer

You should feel lucky if you are in the minority of people who receive health insurance through your employer. According to bankrate.com, company health insurance is actually part of a group insurance plan. Your employer pays for most of your insurance and also pays for your insurance with portions of your paychecks. Everyone in your group plan pays the same rate. The premiums paid by healthy members go towards paying the bills of sick members. Bankrate.com recommends that you study up on your employee benefits package to make sure that the insurance plan you choose provides you with the services and options you will need. If you are young and/or relatively healthy, you may want to consider choosing to pay for your company's cheapest health plan.

Bankrate.com also recommends that you review your insurance plan periodically. You may be paying more money for services you no longer need. For example, if you have children that have graduated from college or are no longer on your insurance plan, you should change your insurance plan accordingly. Additionally, if you have lost weight or quit smoking, you could qualify for a cheaper insurance plan.

Have You Been Laid Off?

If you have recently lost your job, you may want to consider the Consolidated Omnibus Budget Reconciliation Act (or COBRA) plan. With a COBRA plan, you pay for the medical benefits your former employer paid for on your own. The plan lasts up to 18 months. Keep in mind that the COBRA plan is a bit expensive. In addition to paying the premiums your company used to pay, you would also have to pay a 2% service fee.

Are You Uninsured?

Unfortunately, according to bankrate.com you may face discrimination from insurance companies if you try to insure yourself on your own. You may have difficulty buying insurance if you have any medical problems whatsoever. Remember, with a company group insurance plan, your insurance provider only has to pay the medical bills of the sick members in the group.

Look for health plans that have higher premiums. You may pay more upfront for medical coverage, but you will ultimately spend less on deductibles. At the very least, financial analyst Suz Orman recommends paying for worst-case-scenario insurance for medical bills that top $5,000. This way you can at least be sure that you will not have to foot the entire bill for high costs.

Conclusion

No one wants to live their life fearing the worst. By insuring yourself, you can at least rest assured knowing that you are prepared if your health takes a turn for the worse. As a result you or your family would not have to suffer the additional hardship of having to pay for your medical costs yourself. The good news is that if you can not afford insurance coverage, bankruptcy could eliminate your medical bills if necessary.

If you are in debt because of medical bills, find out more about the legal options available to you. Give us a call at 888.743.5787 or fill out our free legal evaluation form.

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Dealing with Guilt when facing Bankruptcy

If you feel uneasy about filing for bankruptcy, consider this: there are many other people facing situations similar to yours. According to the American Bankruptcy Institute, millions of Americans filed for bankruptcy last year alone. Bankruptcy filers come from every background and represent every income bracket. People file for bankruptcy for a variety of reasons, including divorce, medical bills, job loss, and credit card debt.

Despite these differences, bankruptcy filers have something in common. They realize that they have a problem that they can't resolve on their own. Bankruptcy offers a second chance to debtors who are in over their head. You, too, can enjoy the benefits of a second chance by filing for bankruptcy.

Consider this: if you are considering bankruptcy, your debts are probably so great that you will never pay them off. Would you rather file for bankruptcy, or would you rather needlessly suffer a financial burden for the rest of your life? If you have a family, your debts could also interfere with your ability to support them.

Also consider the damage you are doing to your credit by falling behind on your payments. Excessive late payments are a red flag to lenders. My response to those who say "bankruptcy ruins my credit" is to simply point out that the debt has already ruined your credit. Bankruptcy is actually the first step to rebuilding your credit. The reason is simple. You must get out of debt before you can rebuild. If you can't afford to pay your debt, bankruptcy may be the only way to get out of debt.

Additionally, you could even run the risk of losing your home or vehicle if you wait too long to file for bankruptcy. Your lenders could repossess your property if you do not address your debts.

Filing for bankruptcy may be difficult, but you must take action if you are to improve your situation. Bankruptcy could immediately eliminate a significant source of stress in your life and protect your property. You could also correct your financial problems and work towards a brighter financial future.

If you are in debt and would like to find out more about the legal options available to you, give us a call at 888.743.5787 or fill out our free legal evaluation form.

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Credit Counseling Requirement Is Not Deterring Bankruptcy Filings

When Congress rewrote the bankruptcy laws last year to impose legal hurdles on those trying to wipe away their debts by filing bankruptcy, it probably did not envision what has happened since. A major component of the reform is a new credit counseling requirement that debtors must complete before filing for bankruptcy. It was one of the hurdles Congress hoped would push would-be filers away from bankruptcy. It has not turned out that way.

Only 3.3% of Debtors Qualify for Debt Management Plans

The National Association of Consumer Bankruptcy Attorneys (NACBA) released the key findings of its study on February 22, 2006, in which it surveyed six major credit counseling agencies that have dealt with a total of 61,335 consumers under the new federal bankruptcy law. The NACBA study reports that the credit counseling requirement is a waste of time and money and that abuse of the system is a rare exception.

The NACBA study concluded that almost none of those seeking bankruptcy are able to pay their debts. Just 3.3 percent of those who sought the required counseling were a potential candidate for paying the debt off in a debt management plan, and thereby forgoing bankruptcy. The remaining 96.7 percent still needed to file bankruptcy just like they would have before the law change took effect. Additionally, many of the 3.3 percent who may have been eligible for a debt management plan needed bankruptcy relief to prevent immediate harm such as foreclosure, garnishment, or repossession.

Credit Counselors Say Most Bankruptcies Are Caused By Uncontrollable Circumstances

The survey of credit counselors also concluded that the great majority of bankruptcy filers are victims of unfortunate circumstances beyond their control. Four out of five debtors who seek relief suffer from such circumstances that include loss of job, death, medical expenses, divorce and predatory lending. The study concludes, "…the masses of expected deadbeats who were supposed to be identified under the new law and forced into debt management have not materialized."

Most Cannot Qualify for Debt Management Plan

The conclusions made by NACBA are consistent with statements made by various representatives of the credit counseling agencies to the media in recent months. The general consensus is that most debtors are in such deep debt that they cannot qualify for a debt management plan. Ivan Hand Jr., the president and chief executive of Money Management International Inc. (MMI), the nation's largest credit counseling organization told the Washington Post, "Typically, consumers are too far gone by the time they get to us." The President of the Consumer Credit Counseling Service of Greater Atlanta reported also that virtually none of the 12,539 sessions it had conducted found debtors that qualified for anything other than bankruptcy.

Conclusion

If you are facing debt because of uncontrollable circumstances and would like to find out what your legal options are, give us a call at 888.743.5787 or fill out our free legal evaluation form. The evaluation is free, no obligations attached.

http://www.legalhelpers.com/legal_helpers/brc_articles_debt-ed-filing.html

Start your retirement planning now - Here's how

Working your entire life is certainly an unattractive prospect. This is why it so important to plan for your retirement as early as possible.

Start planning now

You should try to live below your means now so that you will be able to enjoy your retirement later. The first step is to take stock of your living expenses and think of ways you can cut costs. Take some time to sit down and think about what your dream retirement would be like. Would you like to travel? Do you have hobbies and interests that you would like to devote more time to when you are no longer working?

How much is enough?

Also keep in mind that your retirement may cost less than you might think. According to MSN Money columnist Liz Pulliam Weston, a recent study by the U.S. Department of Labor's Consumer Expenditure Surveys finds that many people actually spend less money when they are in their retirement. With the exception of healthcare expenses, most retirement-aged peoples' various living expenses dropped dramatically.

Living longer than you expect

Finally, take into account what retirement planners call the "longevity risk." Your longevity risk is the risk that you may end up living longer than you thought you would when you were planning your retirement. As a result, you run the risk of eventually running out of money when you retire. As medical technology continues to advance, this situation becomes even more of a possibility. You will want to save enough money to account for a very long life.

401(k) and more

The best financial vehicles to use to save for retirement are employer-sponsored retirement plans like 401(k) plans. Individual Retirement Accounts, or IRAs are other savings accounts that allow you to put away money from your "gross" or pre-tax wages. The money grows tax-free too. Pension and IRA savings are also immune to seizures during bankruptcy proceedings in most states.

Getting help

However you plan on saving for your retirement, be sure to go over your plans with a financial expert. He or she will give you the best advice for reaching your retirement goals so that you can comfortably enjoy your golden years.

If you are in debt and would like to find out more about the legal options available to you, give us a call at 888.743.5787 or fill out our free legal evaluation form.

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Putting Your Money into Perspective

Advertisements bombard us wherever we go. Television commercials, billboards, and magazine ads all tell us that the right brand of shampoo or piece of clothing will make you happy. Granted, it is nice to own new things. But there is no reason why you should sacrifice important long-term financial goals for temporary satisfaction. Spend your money wisely and save up for what is most important to you.

Budgeting

Try to think of the long-term financial goals that are important to you, like your retirement or your children's college savings. Then plan accordingly. Your first step in planning for the future is budgeting.

Your budget is a list of your monthly expenses, including food, rent/mortgage, gas, entertainment, and so on. As the month progresses, stick to your budget. Keep an eye out for any expenses you can really live without. Try to think of ways you can cut costs, like eating more of your meals at home or bringing your lunch to work with you, instead of eating out.

Stop Trying to Keep Up with the Joneses

You may feel as though you are somehow cheating yourself when you begin living on a budget. It is easy to be jealous of friends and family members that buy whatever they want for themselves. However, keep in mind that everything comes with a price. For all you know, these same friends and family members could be wracking up major debt with their careless spending.

And instead of focusing on what you do not have, think instead about all the things you do have. Be grateful for your family. Consider all the things you have in your life that make you happy. When you value what you have, you will not feel the need to waste money on things that are not important. You will place your money where it counts instead.

If you are in debt and would like to find out more about the legal options available to you, give us a call at 888.743.5787 or fill out our free legal evaluation form.

http://www.legalhelpers.com/legal_helpers/brc_articles_money_perspective.html

Finding a job after College

After four long years of late-night studying and writing term papers, your graduation is approaching. You may feel excited to put your college days behind you, but have you thought about what you will do once that diploma is in your hands? Your first attempt to survive in the "real world" could be very stressful and scary. You need to plan accordingly.

Be aware that your job search could likely take a very long time. This is why it is extremely important to start looking for a job before you have graduated. The earlier you start your job search, the sooner you will find a job. You will only add stress to your life if you postpone your job search until after you have your degree.

You might not find a job for a number of months after you graduate. Your parents may only give you limited financial help or offer you no help at all. Also do not forget that you will have to start paying your student loans soon. Keep an eye on your spending in your final months of college. You will need to save as much as possible before you are out on your own.

Consider finding a part-time job if you do not have one already. It may not be the job you had in mind when you began college, but you will need something to pay your bills until you finally find your dream job.

In the meantime, use every resource at your disposal in your job search. Try to network with your friends, relatives and coworkers for employment openings. Your college professors may be able to help you find something. You should also keep an eye out for on-campus recruitment fairs and try online job search engines like monster.com and careerbuilder.com.

Try not to get overwhelmed if your job search is not immediately successful. Stress is a useless emotion. It will only frustrate and discourage you. Instead, focus on your efforts to find a job that would be a good fit for you. If you begin to feel discouraged, talk to a friend or loved one. It is very hard to make the transition from college to professional life. Keep working hard and stay optimistic. Eventually you will find a good job.

If you are in debt and would like to find out more about the legal options available to you, give us a call at 888.743.5787 or fill out our free legal evaluation form.

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Rising Fuel Costs and the Effect on Americans

Many Americans are starting to feel the pinch of rising gas prices. It is having a direct effect on living standards and expenses. Gas prices nationwide are reaching prices that have not been seen in 25 years. As a result, it is forcing consumers to spend more money on gas, which leaves less money for other living expenses. The average gas price nationwide as of March 5, 2006, was $2.92/gallon; this is up $1.19/gallon from March 23, 2004.

This increase means that in a little over two years, most Americans are spending 50% more on gasoline then they had been in the past. This leaves the average consumer with a lot less disposable income to spend on their bills and living expenses. As a result, many people are unable to pay as much as they used to on other debts like credit cards.

In addition to eating into the monthly budget, the rising fuel costs are causing increased debt. People are spending more on gas and can not afford other living expenses like food, clothes, dining out, entertaining, etc... Instead of paying cash for these things, people have to use credit cards and then must try to figure out a way to pay for the credit card later.

The outlook doesn't look especially positive either despite a recent leveling off of prices. The gas shortage only looks to continue as facilities remain closed in the Gulf of Mexico and conflicts in Africa lead to a shortage of available fuel.

Conclusion

If you are feeling the pinch from increased fuel costs and you would like to talk to an attorney about your options, give us a call at 888.743.5787 or fill out our free legal evaluation form.

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