Medical centers in Arizona and other parts of the country frequently send patients bills with mistakes such as charges for diagnostic tests not performed or double billing for procedures. In a 2013 study of hospital audits, a consumer finance website found that almost 49 percent of bills sent to Medicare contained errors. Some facilities audited had an error rate of 80 percent.
Arizona students and alumni may be under the common misconception that student loan debts are not eligible to be discharged during the bankruptcy process. While legislation varies from one state to the next, only certain Arizona student loans are protected under bankruptcy guidelines that prevent certain forms of debt from being discharged. While government-funded student loans are not eligible for discharge, many private student loans are treated as any other form of debt during the bankruptcy process.
Arizona residents who are struggling to make ends meet may be curious about how bankruptcy works. When debts mount beyond a person's ability to pay, bankruptcy laws provide some relief by allowing the consumer to discharge some debts and start over with a clean slate. Filing for bankruptcy automatically prohibits most creditors from continuing collection efforts. The bankruptcy clerk will give notice of the filing to listed creditors.
Debtors in Arizona may benefit from some information about filing for bankruptcy. In order to receive the protections provided by bankruptcy status, debtors are required to attend a government-approved credit counselor within 180 days before filing. In addition, before any outstanding balance can be discharged, applicants are required to complete a debt education course after filing for bankruptcy.
People in Arizona may benefit from learning more about how to qualify for Chapter 7 bankruptcy. According to federal Bankruptcy Code, certain types of business entities, corporations, partnerships and individuals may qualify as the petitioning debtor. Debtors are required to pass a means test in order to qualify for the relief provided under Chapter 7 status. The selection process is based on calculating whether a presumption of abuse is apparent in the accumulation of debt.
Hockey fans in Arizona may be familiar with the folding of the Trenton Titans last year. The Titans, a member of the Eastern Hockey League, began losing money after failing to make the playoffs in their last four years amid decreased attendance. The current owners of the team have filed for Chapter 7 bankruptcy protection.
Arizona residents may be interested to hear that, according to a recent survey from YouGov, a quarter of all Americans have considered filing for bankruptcy. Of those who are considering filing for bankruptcy, however, about one in five Americans has actually filed. Despite the fact that a quarter of those surveyed perceive bankruptcy as "shameful," the prospect of a fresh start seems to have counterbalanced that sense of shame for 55 percent of those surveyed.
Arizona is home to many older people who may find themselves with seemingly overwhelming medical costs from hospitalization or surgery. Although the Affordable Care Act increased access to medical insurance for many individuals and families, a 2013 study stated that unpaid medical bills were the top reason for bankruptcy filings. That means healthcare forced more people into filing for protection from creditors than did mortgage debt or credit card debt.
Arizona residents considering bankruptcy may be interested the case of one man who has filed for Chapter 13 bankruptcy but is planning to walk away from his home. While the man has already undergone a loan modification, he suggests that he is still unable to pay the mortgage.