The rising cost of healthcare over the last few decades hasn't been a secret for most Americans. Many have been burdened by increasing insurance and healthcare costs. In a time when more Americans are reaching retirement age and, therefore, using more medical services, these increasing costs are hard to bare. Many of these individuals have been burdened with medical debt as a result.
Student loan debt burdens many people in Tennessee and across the United States. This debt often makes it difficult for people to gain a solid financial footing as much of their income is used to repay student loans. Many people struggling with student loan debt may want to turn to bankruptcy to get a fresh financial start. While changes have been proposed to the current bankruptcy code, as was explained in a recent article on this blog, the current law makes discharging student loans in bankruptcy difficult.
Most people do everything they can to better their future. One way that many young people try to do this is by going to college. This education is supposed to give people the competitive edge they need to land a stable and well-paying job in the future. However, this isn't the reality for many graduates.
When people file for bankruptcy, they do so in order to get some sort of debt relief. This relief comes in the form of the discharge. Once the discharge has been granted by the bankruptcy court, the debtor is no longer legally obligated to pay the debt. This means that all communication about the debt -- from debt collectors, for example -- must stop.
As this blog explained in a previous post, people have rights when it comes to medical debt collection. This post explained, that much like other types of debt, medical debt is covered by the FDCPA. This means that creditor collection agencies must abide by certain rules when collecting medical debt. In addition to these protections from creditors, Tennessee residents struggling with medical debt also have legal options.
When Tennessee residents get in financial trouble, it can feel like they are all alone. The debts begin to pile up, while the person's income seems like it cannot catch up to enable the person to break free of the debt cycle.
Medical debt is one of the most frustrating and confusing types of debt. There are notices from hospitals and doctors, from insurance companies and from collection agencies. This debt is piling up after a crisis -- one that may not even be fully resolved. Unlike many other types of debt, medical debt is something that people can't plan for and are not at fault for needing.
In today's economy, many Tennessee residents may be struggling with debt. In order to obtain some debt relief, you may be considering a Chapter 13 bankruptcy. Unlike a Chapter 7 bankruptcy, a Chapter 13 bankruptcy requires debtors to pay back some of their debt in a repayment plan. The amount of debt that a repayment plan will require you to pay will depend on the specific types of debt that you have.
Too many Tennesseans struggle with medical debt. An unexpected disease or an accident could leave an individual with unmanageable debt, leaving him or her concerned not only about his or her physical health, but also about his or her financial well-being. One aspect that may worry those who have medical bills is how the debt will affect their credit.
Those Tennesseans who are struggling with overwhelming debt are not alone. In fact, a recent study conducted by the Urban Institute and Encore Capital found that more than one-third, 35 percent, of Americans who have credit files have debt that has been turned over to collection agencies. That's 77 million individuals. The study assessed non-mortgage debts like medical expenses and credit card bills that were so overdue that the account was handed over to collections. The median amount in collections is more than $1,300, a significant amount. Of course, many face much higher debt amounts that can leave them financially debilitated.