Oak Park Real Estate & Estate Planning Blog

Since the beginning of the COVID-19 pandemic and over the last couple of years, more Americans have faced significant medical bills due to pandemic-related illnesses and other health issues. For many of those consumers, including the ones with health insurance, their medical debt has become substantial, and many are dealing with relentless debt collectors who are seeking payments for costly hospital and treatment bills. For example, a recent NPR report discussed the crippling nature of medical debt and reported that cancer patients in particular are likely to file for bankruptcy . Indeed, a study conducted by the Kaiser Family Foundation (KFF) and reported in that article found that about 25% of cancer patients have filed for bankruptcy, and about two-thirds have struggled to pay for basic needs as a result of medical debt. A recent article in Consumer Reports explains that consumers can take steps to “fight back” when they are contacted by debt collectors over medical bills. Our Oak ...

Many debtors who file for consumer bankruptcy do so, at least in part, as a result of insurmountable medical debt. For those debtors, Chapter 7 bankruptcy offers a way to have most medical debt discharged and to get a fresh financial start in order to begin rebuilding credit. If medical debt were no longer reported by credit bureaus and it did not affect a consumer’s eligibility for loans and other forms of credit, would overall rates of personal bankruptcy decline? According to an article in The New York Times , the Consumer Financial Protection Bureau (CFPB) is considering the possibility of banning medical debt from consumer credit reports. What else do you need to know about this proposal and how it could affect consumer debt and bankruptcy filings? Medical Debt is Harming Consumers Even before the start of the COVID-19 pandemic, consumers struggled with many different types of consumer debt, including substantial medical bills. Even with health insurance, an unexpected medical em...

Medical debt is a serious problem in Illinois and across the country, and consumers routinely struggle with bills from health care. Even with health insurance, consumers still routinely pay extensive costs for even routine health care, and unexpected medical events can result in thousands of dollars of medical debt that they were not expecting. Indeed, as a result of medical debt, many Americans ultimately file for consumer bankruptcy. A recent report from the Consumer Financial Protection Bureau (CFPB) emphasizes there are numerous issues to consider when it comes to medical debt in the United States, including the way in which debt is incurred and managed by health care systems. If you have questions about handling medical debt, or if you want to learn more about filing for consumer bankruptcy, one of our experienced Oak Park consumer protection attorneys can provide you with more information. In the meantime, we want to provide you with more information about the CFPB report. Med...

Are you thinking about filing for Chapter 7 or Chapter 13 bankruptcy , and are you wondering about types of debt you have and whether they are dischargeable? While there are some types of debt that are not dischargeable in consumer bankruptcy cases, there are many forms of commonly held debt that can be discharged in your bankruptcy case. If you have questions, you should always seek advice from a bankruptcy lawyer who can help you. In the meantime, the following are examples of some of the most common types of debt that are dischargeable in personal bankruptcy cases under the U.S. Bankruptcy Code . Credit Card Debt Did you know that more than 191 million Americans currently have credit cards and that millions of households are currently carrying tens of thousands of dollars in credit card debt? According to Debt.org, credit card debt is one of the most common forms of consumer debt, and it is nearly always dischargeable in a bankruptcy case. While there are some exceptions when a ...

The COVID-19 pandemic has resulted in millions of job losses, which in turn has left millions of Americans unable to pay their bills and mortgages. In some cases, struggling debtors are also dealing with long-term health problems as a result of the coronavirus on top of substantial medical debt. For many of these debtors, there are questions and concerns about how to handle the debt they are facing and whether it is possible to discharge medical debt from COVID-19 hospital stays and doctor’s appointments through consumer bankruptcy . In most cases, medical debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy cases. If you have questions about discharging medical debt related to COVID-19 in a personal bankruptcy case, you should seek advice from one of the experienced Oak Park consumer bankruptcy attorneys at our firm. COVID-19 is Resulting in Medical Debt for Consumers When a person is diagnosed with COVID-19 and has a moderate or severe case of the virus, hospitalization ma...

Medical debt is a serious problem for hundreds of thousands of consumers, and it is a factor in a large percentage of personal bankruptcy filings every year. Given that more Americans are getting sick and requiring hospital care with the COVID-19 pandemic, medical debt is a bigger issue than ever before. According to a recent press release , U.S. Senator Jeff Merkley, along with members of the U.S. Senate and the U.S. House of Representatives, has introduced the Medical Debt Relief Act, which “would remove paid-off or settled medical debt from a patient’s credit report and institute a year-long waiting period before new medical debt can be reported.” The proposed legislation is designed to help debtors maintain eligibility for credit despite medical debt, and for those consumers to have a chance to catch up on medical debt before their credit is harmfully affected. We want to say more about the proposed legislation, as well as the links between medical debt and consumer bankruptcy ...

Many thousands of people have been hospitalized with COVID-19 infections and have been incurring medical bills, while many thousands more owe significant medical debt due to previous hospitalizations, surgeries, and treatments. While you might think that hospitals and other healthcare facilities are holding off on aggressive debt collection tactics during the pandemic and while they are struggling to treat COVID-19 patients. However, according to a recent article in ProPublica , the opposite is actually true. As that article explains, while healthcare providers at hospitals across the country deal with sick patients, many of whom are fighting for their lives, the billing departments at those facilities are often hounding patients who owe money. Aggressive Hospital Debt Collection Continues Despite Job Losses Consumers across the country are dealing with many different effects of the coronavirus pandemic—from COVID-19 infections and illness to job loss and reduction in wages. While...

The topic of consumer bankruptcy is a significant one for a number of the Democratic presidential candidates, including Elizabeth Warren and Bernie Sanders. Personal bankruptcy can allow debtors in Oak Park and across the U.S. to get a fresh start when they are struggling with a massive amount of consumer debt or can allow a struggling homeowner to prevent foreclosure with Chapter 13 bankruptcy . However, many of the Democratic presidential candidates contend that consumers should not even be grappling with much of this debt in the first place—especially medical debt. According to a recent article in Market Watch , Sen. Bernie Sanders has been focusing on medical debt and consumer bankruptcy, and the need to reconfigure the American healthcare system so that consumers are not considering bankruptcy solely as a result of medical debt. What do you need to know about consumer bankruptcy and medical debt? We will tell you a bit more about how Bernie Sanders and other Democratic hopeful...

Given the way in which questions about medical debt and universal healthcare have become prominent in news cycles concerning presidential nominee debates, the issue of medical bankruptcy is on a lot of minds. According to a recent article in the Los Angeles Times , Bernie Sanders has repeatedly asserted that “medical bills drive 500,000 Americans into bankruptcy every year.” That article emphasizes that The Washington Post has done fact-checking on that number, suggesting that it is higher than the actual number of medical bankruptcies in a particular year. However, as the Los Angeles Times article underscores, the figure of 500,000 Americans seeking bankruptcy protection due to medical debt is based on a peer-reviewed study published in the American Journal of Public Health. With news stories highlighting the issue of medical debt and bankruptcy, it is a good time to revisit the issue and to consider the ways in which debt from hospital bills, surgeries, and other health care often...

Many consumers have a significant amount of debt that results in financial struggle and may lead to consumer bankruptcy . For numerous debtors, that debt is on credit cards and comes with high interest rates. For others, debt is tied more clearly to hospital bills, mortgages, student loans, and other costs. At the same time, however, it is important to recognize that all credit card debt is not tied to consumer purchases from retail establishments. Some consumers have credit card debt related to medical bills. According to a recent study conducted by the Consumer Bankruptcy Project and reported in a Truthout.org article , about two-thirds of all personal bankruptcies are tied to medical debt or debt from illness. What does the information from this study tell us? In short, the data implies that the Affordable Care Act (ACA) has not reduced medical debt significantly enough to lower the rate of medical debt bankruptcies. History of Medical Debt and Bankruptcy Prior to the passage ...

Facing a significant amount of consumer debt can be difficult for Oak Park residents of all ages, especially when the debt seems insurmountable. In many cases, consumers who are dealing with debt make the decision to file for bankruptcy in order to get a fresh start. But is such a decision the right one for older adults who are planning to retire soon? According to a recent report from NBC News , retiring with consumer debt can be complicated. In particular, many middle-class earners who are facing medical bills in older adulthood are finding that their options are limited to retiring with debt or filing for personal bankruptcy. Why are more people retiring with consumer debt, and what solutions might exist? What Happens When You do Not Reach the Goal of Being Debt Free Before Retirement? One of the most pressing questions for older adults who are nearing retirement is this: What happens when you do not reach the goal of being debt free before you retire? As t...

While some reports suggest that consumer bankruptcy rates are falling in Oak Park and throughout the U.S., there are certain populations that may be struggling with debt at higher rates than others. More precisely, according to a recent article in Forbes Magazine , older Americans continue to file for bankruptcy at particularly high rates due to insurmountable medical bills. Many seniors who have already filed for Chapter 7 bankruptcy have described it as a “godsend,” emphasizing that they would not have been able to survive if they had not made the decision to file for bankruptcy in order to deal with hospital bills and surgery costs that were out of reach. Why do older Americans have higher medical debt than individuals in other age groups? If you are or an elderly loved one with substantial medical debt are thinking about filing for personal bankruptcy, what else do you need to know? Seniors Experience Serious Medical Conditions Requiring Costly Surgeries at Si...

If you owe substantial medical debt, as so many residents of the Chicago area do, you may be dealing with particularly aggressive, and in some cases illegal, debt collection practices . According to a news release from the U.S. PIRG Education Fund, the consumer group’s recent report on “ Medical Debt Malpractice ” suggests that many debt collection companies may be violating the Fair Debt Collection Practices Act (FDCPA) when attempting to collect on healthcare debts owed by consumers. Incorrect Medical Debt Information One of the major problems associated with medical debt is that the information on a consumer’s records often is inaccurate. As a result, medical debt collectors contact consumers and may even use tactics prohibited by the FDCPA to obtain debts that are not exactly owed. According to the news release, “medical debt items on credit reports are often wrong or about the wrong consumer.” A consumer will be contacted by a medical debt collector for healthca...