Bankruptcy Filings – Will Obamacare Reduce Bankruptcy Filings
In a recently published article entitled “The Future of Personal Bankruptcy in a Post-Obamacare World,” The Wall Street Journal takes the position that a mandatory health care system designed to give people access to affordable health insurance will reduce the number of personal bankruptcy cases.
As we have noted in previous articles on our blog, medical expenses are one of the major reasons for bankruptcy filings.
The Wall Street Journal article, focusing on a case study in the state of Massachusetts, concludes that mandatory nationwide health insurance will make families more financially stable and keep them out of bankruptcy.
President Barack Obama himself has pointed out that 62.1% of consumer bankruptcies are medical bankruptcies, citing a study Sen. Elizabeth Warren (D., Mass.) co-wrote as a Harvard law professor.
With that said, mandatory health insurance has not saved Massachusetts – or the others states – from bankruptcy filings.
Massachusetts ranked 10th best bankruptcy filing rate in the United States, 11th if the District of Columbia is counted.
During 2014, Massachusetts residents filed at a rate of 154 bankruptcy cases per 100,000 people. That is slightly better than New York at 162 cases and well ahead of the national average of 292.
Our conclusion is that a personal bankruptcy will continue to be caused by a multitude of factors, and rarely will medical bills alone cause a bankruptcy filing.
With that said, ObamaCare may save a few individuals – perhaps thousands – from bankruptcy, and that is a good thing.
Brian D. Poe, Esq., General Counsel, Ducere Investment Group
If you are interested in filing bankruptcy due to creditor harassment, foreclosure, garnishment, lawsuits, mounting debt, repossession or other collection issues, and need more information about Chapter 13 bankruptcy — or Chapter 7 bankruptcy, please set up an in person consultation with an experienced bankruptcy lawyer at Georgia Bankruptcy Attorneys (d/b/a Brian Poe & Associates, Attorneys, PC), an Atlanta law firm with satellite offices in Buckhead, Fairburn, Forest Park (Clayton County), South Fulton County (less than 10 minutes from the Atlanta airport), Union City, and various other locations in North Georgia, in addition to our downtown Atlanta office.
With affordable rates in comparison to bigger law firms, we accept payment plans and offer other flexible pay arrangements if you have a job or other income, and are committed to paying.
Can Filing Bankruptcy During Retirement Make Sense?
DEPENDS. Retirees may appear, upon first blush, to be illogical candidates for a bankruptcy.
But dig deeper and consider this – financial crisis can strike at anytime.
Even those who are retired are not insulated from financial woes.
Many individuals rely on 401k and other market-based investments for much of their retirement income and the volatile markets of the last decade have proven to be disastrous for many unlucky investors.
Also, a divorce, which can occur at any age, could upset your carefully designed retirement plans.
And some parents may have signed on personal loans for their children and may suddenly find themselves on the end of collection calls for a debt they never planned to pay, or worse a co-signer on a home of a relative that is now in foreclosure.
Bankruptcy, at the end of the day, is a financial decision, and it needs to viewed as such.
It can provide options, such as a Chapter 13, which can be used to eliminate financial burdens like second mortgages, medical expenses and credit card debt, or a Chapter 7, which can eliminate debts entirely.
And because retirees may have a reduced need for new credit and some income, such as Social Security, may be protected in a bankruptcy from creditors, filing a bankruptcy even after retirement may make financial sense.
If you are interested in filing bankruptcy, and need more information about Chapter 7 bankruptcy — or Chapter 13 bankruptcy, please set up an in person consultation with an experienced bankruptcy lawyer at Georgia Bankruptcy Attorneys (d/b/a Brian Poe & Associates, Attorneys, PC),
an Atlanta law firm with satellite offices in Buckhead, Fairburn, Forest Park (Clayton County), South Fulton County (less than 10 minutes from the Atlanta airport), Union City, and various other locations in North Georgia, in addition to our downtown Atlanta office.
With affordable rates in comparison to bigger law firms, we accept payment plans and offer other flexible pay arrangements if you have a job or other income, and are committed to paying.
Advice on Bankruptcy – The BEST WAY to avoid any potential loss of your income tax refund:
Is to discuss your situation with an experienced bankruptcy attorney or law firm, such as Georgia Bankruptcy Attorneys, a division of Brian Poe & Associates, Attorneys, PC.
In many cases we can exempt all or a portion of your tax refund, so you can keep the money after you file. The best guidance is to spend the money on goods and services that are reasonable and necessary.
Luxury good purchases like electronics, vacations and jewelry should be avoided.
Likewise gifts to family and friends, shopping sprees and gambling should all be avoided.
The following are considered safe (and to the extend that these are payments towards assets, these are most often “exempt” assets as well):
Auto Insurance
Auto Repairs (basic)
Car payments
Child Support Arrears
Clothing
Dental Work
Food
Medical Bills
Medicine
Mortgage payments
Rent payments
Tax Debts
Utility Bills
If you are interested in filing bankruptcy, and need advice on Bankruptcy – Chapter 7 bankruptcy or Chapter 13 bankruptcy, please set up an in person consultation with an experienced bankruptcy lawyer at Georgia Bankruptcy Attorneys (d/b/a Brian Poe & Associates, Attorneys, PC),
an Atlanta law firm with satellite offices in Buckhead, Fairburn, Forest Park (Clayton County), South Fulton County (less than 10 minutes from the Atlanta airport), Union City, and various other locations in North Georgia, in addition to our downtown Atlanta office.
With affordable rates in comparison to bigger law firms, we accept payment plans and offer other flexible pay arrangements if you have a job or other income, and are committed to paying.
Wage Garnishment. In this Wage Garnishment video, Bankruptcy Law Attorney, Winn Keathley explains the affects of Automatic Stays on Wage Garnishments, and how the Automatic Stays can aid you.
The Automatic Stay places certain restrictions on creditors after you file for bankruptcy.
He is the courtroom attorney primarily for the Atlanta courts, but also has experience in the Gainesville and Newnan courts.
Mr. Keathley received a J.D. from Georgia State University School of Law in January 2010.
He earned B.A.s in History and Political Science from Trinity University. Mr. Keathley is a member of Phoenix Lodge #131, Al-Menah Shrine chapter and the Tennessee Scottish Rite.
