A recent Supreme Court decision regarding Chapter 13 bankruptcy may affect debtors in Arizona who want to appeal their bankruptcy plans. The justices ruled that a Massachusetts debtor who owed $387,000 on his home did not have the right to appeal the bankruptcy court's decision to refuse to ratify his plan.
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 residents may not view bankruptcy as an ideal solution to their financial problems. However, it can be a helpful step in recovering from challenging circumstances such as a medical emergency or a long period of unemployment. There are two primary options for personal bankruptcy, Chapter 7 and Chapter 13, and each has its own benefits as well as requirements.
Many people in Arizona have real concerns about what will happen to their home in the event they file for bankruptcy. Like most homeowners, filers may have one or more mortgages on their homes. Those mortgages may be seriously delinquent or they may have already received a foreclosure notice but the home has not yet been auctioned.
Arizona residents may be interested in some information on Chapter 13 bankruptcy in general and how it deals with discharging federal taxes. The tax issues involved depend greatly on the particular circumstances of the person filing for bankruptcy and looking to discharge the debts.
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.
Arizona residents might be interested in knowing more about when a bankruptcy actually takes effect. A recent article discusses the discharge date for both Chapter 7 and Chapter 13 bankruptcy. The discharge date is when a debtor is no longer required to make payments to creditors and certain debts are discharged entirely. The article suggests that the date depends on which type of bankruptcy the petitioner filed.
Some Arizona residents may have experience dealing with different forms of medical debt. According to the Consumer Financial Protection Bureau, recently published research indicates that having medical debt may inadvertently cause lenders to underestimate someone's credit worthiness. Another study performed by the Federal Reserve Board is said to have found that more than half of all collections in credit reports are associated with medical debt.
People in Arizona sometimes find unpaid bills on their credit reports that they didn't realize existed. It is not unheard of for people to have debt of which they'd forgotten or were never aware until after it is turned over to a collection agency. Fortunately, there are things people can do to resolve these issues and possibly prevent future surprises.
When an Arizona couple in their 60s decides to take the plunge and remarry, they might wonder how that will affect their retirement accounts. One party might bring debt, such as credit cards or medical bills, to the union while the other is debt-free with retirement monies in place. Retirement accounts are generally safe from creditors even if someone has medical bills that are not covered by insurance. Even if the debt forces one party to later declare bankruptcy, creditors will not be able to access the funds in employer-provided retirement accounts.