According to data reported by CNBC, medical bills are the most common reason that Americans file for bankruptcy. If you’re struggling with doctor and hospital fees that you can’t afford to pay, this is what you need to know about medical bankruptcy.

Medical Debt By the Numbers

Unaffordable medical care is a widespread problem even for families who have health insurance. Consider these figures:

• The Consumer Financial Protection Bureau (CFPB) reported in 2014 that 43 million Americans have unpaid medical bills on their credit reports.
• These medical bills represent half of all unpaid debt in the United States.
• According to the CFPB report, the average American owes $573 in unpaid medical bills that have gone to collections.
• The 2017 American Household Credit Card Debt Study conducted by NerdWallet found that medical debt has increased by 43%, while household income has only increased by 20% over the past decade.
• In a 2016 Kaiser Family Foundation survey, 33% of Americans reported that they were unable to afford to pay their medical bills.

What Medical Debt Means for You

If you are worried about medical debt that you just can’t pay, know that you are not alone, and that there is a light at the end of this tunnel. Filing for bankruptcy is a viable option for many individuals who are overwhelmed with their health care bills, though it’s important to keep in mind that a bankruptcy will account for all outstanding debts you have — not just your medical bills.

When you file for bankruptcy, medical debts are considered unsecured debts. This means that like credit card debt and personal loans, these balances can be discharged if your bankruptcy is approved by the court. You will no longer be obligated to pay these bills and they will be removed from your credit report, although the bankruptcy filing itself will remain for up to seven years.

With Chapter 7 bankruptcy, all eligible debts are discharged. With Chapter 13 bankruptcy, some debts, including medical bills, are discharged, while others are reorganized in a repayment plan that lasts three to five years.

Some individuals may worry that if they discharge medical debt in bankruptcy, they can no longer visit that health care provider. This rarely occurs, however — especially when you seek care at a large health group. In fact, thanks to the Emergency Medical Treatment and Active Labor Act of 1986, federal law prevents hospitals from refusing necessary treatment to those who can’t pay for it. If you live in the Ventura County area and are considering bankruptcy, the team at Brent George Law can help you weigh your options to resolve your past-due doctor bills and other debts. Contact us today for your free consultation.

In reflection of the recent California wildfire disaster we wanted to take a quick look at some of the ramifications of dealing with fire damage to home or property when you are renting from another party.

A fire is devastating. The thought of a wildfire destroying your property is understandably a nightmare. As wildfires encroach on residential areas, this is a real worry for some tenants. What happens if you have to leave during a fire? Even when a building isn’t destroyed, there may be damages from nearby fires. Whatever the case, while you are away from your home, there are certain rights as a tenant that you need to be aware of.

For help with legal rights after a fire, contacting Brent George Law may help. Having someone to help in an official capacity is always beneficial.

Rent Prices

When you’re displaced, do not pay rent. If your residence needs repairs, you do not pay rent until after the repairs are finished. Equally, you should not have to worry about your rent increasing. If a property owner completes repairs after a fire, the rent can’t go up in cost. The only exception is if the landlord petitions the Rent Board. You are entitled to your place. If the property owner rents to someone else instead of inviting you back to your residence, then you can file for a wrongful eviction.

Returning Home

When you’re displaced, you need to make a decision. Some people choose not to return to their residence. If you plan to return, then you need to send a letter to your landlord to indicate that you will return. Once the repairs are complete, the property owner should invite you back. After that point, you have 30 days to notify the landlord to let him or her know that you plan on coming back. If the property owner rents the place out too soon or does not offer you your former place, you could have a claim against him or her.

Negligence Suits

In the case of a wildfire, odds are you will not be entitled to a claim against your landlord. Claims are for cases where the property owner neglected to keep up with maintenance that caused the fire. In the case of a wildfire, odds are you don’t have enough to file a claim. No matter the source of the fire, always obtain fire records regarding your residence.

When it comes to what you need to do after a wildfire, you may want to speak to law officials, such as Brent George Law, about where you stand as far as tenant rights. After displacement due to a fire, you do have rights. Please contact us today if you have any questions.

People accrue debt for a variety of reasons, but not all debt is created equal. When seeking bankruptcy, it is important to understand the differences between unsecured and secured debts. A bankruptcy lawyer can assess your debts and provide greater detail on how a bankruptcy might affect your current assets, in addition to your current debts. With the right knowledge, you can make better, informed decisions about your financial future. A Chapter 7 bankruptcy will result in a discharge of all unsecured debts. Secured debts are handled differently in Chapter 7. In a Chapter 7 the personal liability for the secured debt is discharged, but the secured creditor lien remains.

Unsecured Debt

A lender cannot take items as collateral for unsecured debt. Since they cannot take your assets to collect past due payments, they may pursue other avenues of collection, such as garnishing your wages or hiring a debt collector. Unpaid debts are usually reported to the three major credit bureaus, which can negative affecting your credit score. Types of unsecured debts include:

● Student loans
● Court-ordered child support
● Credit cards
● Medical bills
● Payday loans

Secured Debt

Assets are tied to secured debts. If you own a home or vehicle, those types of assets can be used as collateral to collect on a debt. Failure to pay on time could result in the lender placing a lien on the title. With a lien in place, the lender can foreclose or repossess the asset. Lenders usually auction off assets after seizing them. The debtor is then responsible for any difference between the selling price and remaining debt. Until the debt is paid in full, the bank still has ownership of your car or home. You only fully own the asset once the loan is paid off.

Debt Priorities

Dire financial straits can force you to prioritize which debts to pay first. Without the cash on hand to pay all your debts, a bankruptcy lawyer would advise you to prioritize making payments on secured debts. Falling behind on secured debt payments puts those assets at risk. In addition, it is often more difficult to catch back up on payments once your finances stabilize. When looking to pare down debt, prioritizing high interest unsecured debt can help pay balances down faster with extra payments. While working to eliminate debt, don’t forget to continue making minimum monthly payments on all outstanding bills.

A bankruptcy lawyer such as Brent George Law can help you navigate your various types of debts, prioritize the debts and let you know if bankruptcy is the right choice for you. Bankruptcy is often a last resort for most people. Understanding how financial institutions view different types of debt can help you prioritize your finances. Knowledge is the key to protecting your valuable assets when life throws you a financial curveball.

If filing for bankruptcy seems just over the horizon, it’s only natural to be scared. Bankruptcy is a big deal, and can follow you for the rest of your life. When people are afraid, or embarrassed, they often engage in behaviors that are counterproductive. While to err is human, of course, when it comes to bankruptcy, there are a number of common mistakes that could negatively impact your bankruptcy — or in the severest of cases, actually land you in jail.

1. TRANSFERRING ASSETS

The court doesn’t take kindly to people who try to duck bankruptcy laws. Often, this comes in the form of transferring or giving away assets to a child’s name or a relative in an attempt to mask what they have. This is a transparent foolhardy move, and something that is almost impossible to get away with.

2. SELECTIVELY REPAYING LOANS

If you repay a relative or friend in the year prior to filing for bankruptcy, or if you repay any creditor within 90 days of filing, this could be considered a “preferential transfer.” Selectively repaying loans might result in a bankruptcy trustee filing an adversarial proceeding, which would require the person you paid to return the money, so that it could be redistributed those funds equally to your creditors. This might not seem like the biggest deal, but do you really want your bankruptcy trustee to sue your mother? Probably not.

3. CONCEALING OR LYING ABOUT ASSETS

Bankruptcy laws require that you fully disclose all of your assets, which means as a debtor it is your obligation to ensure that all of your assets are accurately reported and fully accounted for. Lying about or concealing assets is a form of bankruptcy fraud, a white-collar crime that “carries a sentence of up to five years in prison, or a fine of up to $250,000, or both. Even just intending to commit bankruptcy fraud may be punishable” [Cornell Law]. The FBI fraud division, IRS auditors, and the U.S. Trustee Program examine all bankruptcy filings. Even if assets are not listed, they will be found, leading to the dismissal of your petition and likely criminal charges.

4. HIDING CREDITORS

Just like how you’re required to disclose all of your assets, you are also required to disclose all of your debts, including, but not limited to: debt on credit cards (zero balance cards aren’t necessary though); charged-off debts, or debts that have been sold to another creditor; debts that involve foreclosures and repossessions, as these may still have outstanding balances. When filing for bankruptcy you absolutely must list out every person or company to which money is owed. You cannot pick and choose creditors.

5. RAIDING YOUR RETIREMENT ACCOUNTS

It might seem like a good idea, but dipping into your 401(k) to pay off some of your debt is unwise. Most retirement accounts are considered protected assets, meaning they’re exempt when you file. Your retirement accounts are your nest egg, and should be left untouched until your golden years — especially since they were never at risk of being seized in the first place. Your future self will thank you.

6. CREDIT CONSOLIDATION

Even if you negotiate lower payments or restructure your debt outside of bankruptcy, your credit score will be adversely affected and you could incur tax liability. Remember, too, that “not-for-profit” doesn’t mean “free.” These organizations are often funded by banks and the credit card industry to try to collect as much money from you as possible.

7. USING CREDIT CARDS PRIOR TO FILING

There are specific rules concerning how much you can charge to a specific creditor and what you can purchase prior to filing a bankruptcy. Failing to comply with these rules could result in a denial of your discharge or a delay in the process. Generally speaking, any charges you make within 90 days of filing are left out of your bankruptcy debts. Meaning, once you come out the other side of bankruptcy proceedings, you’ll still owe your creditors for these charges.

8. BURYING YOUR HEAD IN THE SAND

Waiting too long to file for bankruptcy because it’s scary, or overwhelming, can only lead to more problems in the end. Burying your head in the sand like an ostrich, as inclined as you might be to do so, can can result in wage garnishment, bank levies, and liens on real estate. These are all major headaches!

Strategy is a huge component of a successful bankruptcy. Proper planning and preparation are critical. If you are concerned about debt, don’t delay. Contact someone like me. I offer a free consultation.

There’s no hiding it: more and more seniors are filing for bankruptcy. Whether you’re filing for chapter 7 or chapter 13 bankruptcy, there are far too many options and details to consider on your own, which is where a bankruptcy lawyer can be vital. If you’re struggling with finances, or know a senior who is, fully understanding the reasons that seniors are filing for bankruptcy can be an important part of finding the right solution.

Take a look at some of the causes of increased rates of bankruptcy, as well as some options for those struggling with financial hardships.

Bankruptcy Among Seniors

There’s no denying that some seniors have struggled to save a comfortable nest egg for retirement. However, even an adequate retirement fund can be drained far sooner than anticipated due to a variety of factors. Seniors not only struggle with paying their bills, but also with the stigma of financial hardships.

The Consumer Bankruptcy Project makes it clear that the bankruptcy filings of individuals over 65 have increased dramatically in recent years. The amount has increased by five times in recent years, which means there’s a good chance you may already know a senior citizen who is considering or has already filed for bankruptcy.

Your Insurance Safety Net

How confident are you with your insurance protections? Certain safety nets have been shrinking in the past few decades, and insurance premiums have been growing for even senior citizens. An unexpected hospital bill can mean the difference between a comfortable retirement and financial hardship. Insurance premiums and the increase in hospital visits have lead many seniors to seek a trustworthy bankruptcy attorney.

Taking Stock of Your Stocks

The stock market can be a blessing or a curse, particularly for seniors who rely in part on the trends of the market for their retirement fund. While the market has grown since the Great Recession of 2008, your investments might not be performing as well as you expected. Poor investment returns isn’t the only reason many seniors are looking for a bankruptcy lawyer, but it is a significant factor.

Navigating Bankruptcy

Bankruptcy can be devastating, but there is hope. If you or a senior you know is facing a difficult financial situation, consider hiring a bankruptcy attorney to help you navigate this difficult time. There are a number of factors that can lead someone to filing for bankruptcy, and nearly as many options to conduct if you need to file. In order to better understand what’s available to you, an attorney can offer advice and discuss with you all of these the different bankruptcy options. While it might seem like a dark time, bankruptcy can be a hopeful option for either you or your loved ones. Contact Brent George Law today for a Free consultation.

Filing for bankruptcy is never anyone’s first choice. There are a number of options to explore before meeting with a bankruptcy lawyer to determine whether it’s the right solution to your circumstances. One of these pre-bankruptcy options is to take out a debt consolidation loan.

What is Debt Consolidation?

Debt consolidation is the combination of several unsecured debts—payday loans, credit cards, medical bills—into one monthly bill with the illusion of a lower interest rate, lower monthly payment and simplified debt relief plan.

Unfortunately debt consolidation promises one thing but often delivers another. That’s why dishonest companies that promote too-good-to-be-true debt relief programs continue to rank as the top consumer complaint received by the Federal Trade Commission.

The debt consolidation loan interest rate is usually set at the discretion of the lender or creditor and depends on your past payment behavior and credit score. Even if you qualify for a loan with low interest, there’s no guarantee the rate will stay low. Lower interest rates on debt consolidation loans can change. This specifically applies to consolidating debt through credit card balance transfers. The enticingly low interest rate is usually an introductory promotion and applies for a certain period of time only. The rate will go up over time.

Consolidating your bills means you’ll be in debt longer. In almost every case, you’ll have lower payments because the term of your loan is prolonged. Extended terms mean extended payments. Your goal should be to get out of debt as fast as you can! Debt consolidation doesn’t mean debt elimination. You are only restructuring your debt, not eliminating it.

Can You Still File for Bankruptcy?

In some cases, debt consolidation isn’t effective enough and bankruptcy is the best option. First, you should understand that there are two types of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 uses your nonexempt assets to pay your creditors, either in full or partially, depending on your assets. You are able to keep your exempt property and any remaining debt will be erased. Similar to debt consolidation, Chapter 13 establishes a new debt payment plan based on your income and is often used by those with a degree of disposable income to avoid losing assets.

A debt consolidation loan will be treated as unsecured, which means you can have it discharged like other debt. To that end, you should consult with a bankruptcy lawyer to see if filing for Chapter 7 bankruptcy is best for your financial situation and to avoid having your debt considered “bad faith.” This implies you had no intention of paying off your debt and may prevent a bankruptcy discharge.

The decision to file for bankruptcy doesn’t come easily and can be confusing and complicated. That’s why it’s vital to have an experienced bankruptcy lawyer you can trust. Contact the Brent George Law Office today to get started.

Since long before the 2008 economic crisis was even a twinkle in Wall Street’s eye, the hardships of bankruptcy have plagued both individuals and businesses alike. While the right bankruptcy lawyer from an established firm, such a Brent George Law, can make all the difference in a filing, it will always be a difficult and stressful life event. This is why the recent news of a four percent drop in bankruptcy filings shines brightly as a beacon of hope for many.

How Significant is a 4 Percent Drop?

Based on data originally reported by Epiq (formerly Epiq Systems), a legal services industry leader, findings show that as of May 2018, the total number of all U.S. bankruptcy filings was 67,307—a figure that clocks in at 2,425 fewer filings (or 4%) than the 69,732 cases filed in May 2017.

• Consumer bankruptcy filings experienced a 3% drop, from 66,057 in last year to 63,982 this year.

• Commercial bankruptcy filings decreased by a healthy 10% year-over-year, down to 3,325 from 2017’s total of 3,675.

• Total commercial Chapter 11 filings reported the most extreme change, falling to 447 cases total from last May’s 579, a remarkable decline of 23%.

Will Filings Continue to Drop?

There is no way to predict the future of bankruptcy filings, and a bankruptcy lawyer should always be consulted on a case-by-case basis. That being said, these findings must be viewed through a critical lens that takes into account all filings, not solely the difference between the same months, one year apart. That 10% drop in commercial filings also happens to be a 2% increase from April 2018, and the impressive 23% decrease in commercial Chapter 11 filings includes 14 more cases than that of the previous month.

Are Any Steps Being Taken to Combat Bankruptcy?

American Bankruptcy Institute (ABI) executive director Samuel Gerdano warns that many businesses and families are still experiencing financial pressure, due to the steady increase in borrowing costs and its role in overall debt. In light of this, ABI has doggedly supported two initiatives that will help unburden struggling businesses and individuals:

• ABI’s Commission to Study the Reform of Chapter 11, which addresses the restructuring of small and medium-sized enterprises and is currently before Congress.

• ABI’s Commission on Consumer Bankruptcy’s Department of Education recommendations in the evaluation of student loans in bankruptcy, which will be released next year.

Making the decision to file for bankruptcy is hard, finding the right bankruptcy lawyer shouldn’t be. If you want to learn more about your options or believe filing for bankruptcy is right for you, contact the Brent George Law Office today and take the first step to a fresh start.

While bankruptcy laws are governed by federal statutes, they are implemented on a state level. Each state may have its own regulations concerning bankruptcy procedures, which is why it is important to work with a bankruptcy lawyer who understands California’s state requirements.

The following will give you a better understanding of how bankruptcy works in the Golden State.

The Types of Bankruptcy

When people are in debt over their heads, they may consider bankruptcy as a financial reset—a way to get a break from their creditors, reorganize their finances, and start again to build credit.

Filing for bankruptcy can give people breathing room, but it doesn’t wipe the slate clean. Instead, you may get some debt relief while consolidating other expenses to prioritize your repayments.

Here’s a rundown of the four main types of bankruptcy and their basic differences:

1. Chapter 7: Also referred to as “straight bankruptcy,” this type may require you to give up some of your property to remove some of your debt. This might not be the right option for property owners wishing to retain their homes or other assets.
2. Chapter 11: This type of bankruptcy is favored by businesses who want to remain in operation while restructuring their debt. Individuals with very large debt may also file for Chapter 11.
3. Chapter 12: Family farmers may be protected from losing their property when they file for this kind of bankruptcy. They may reorganize to a payment plan that is approved by the court, allowing them to continue to operate their farms while repaying what they owe.
4. Chapter 13: This form is for individuals who have income and assets such as a home or car, and can make payments if their debt is consolidated, reduced, or restructured.

California-specific Rules

Bankruptcy law in California is unique, compared to other states. Here are a few regulations the were put into place in the Golden State.

1. Exemptions: Your home and any equity you have in your home may be exempt, which means you may be able to file for bankruptcy while retaining your homestead
2. Community property: Because California mandates that property is owned by both spouses in a marriage, when filing jointly for Chapter 7 (for example), the state will consider all property to be part of the estate and therefore subject to bankruptcy proceedings.
3. Foreclosure: As a non-recourse state, California law provides that lenders may collect either the home or the collateral as repayment, but not both.

The above information provides a basic understanding of how bankruptcy works, but if you are still confused, you should consult with a California bankruptcy lawyer who is experienced in your situation. You can schedule a consultation online with the law offices of Brent D. George to learn more about your options or call them now at (805)494-8400.

Though the stigma it once had has all but disappeared, bankruptcy can still leave debtors making desperate moves in a last ditch effort to protect their assets. Unfortunately, as any proper bankruptcy lawyer will tell you, moving assets prior to filing for bankruptcy could end up causing you even more trouble.Here are three types of assets you should avoid transferring prior to filing for bankruptcy.

Real Estate and Personal Bank Accounts

Many bankruptcy filers will try to place their bank accounts and property assets in the name of family and friends. It might seem to you like a creative, harmless way to protect everything you’ve worked for, but to creditors ready to seize these assets or file a lawsuit, it’s a transparent attempt to manipulate the system and weasel out if paying what you owe.

If you do transfer these assets just before filing for bankruptcy, know that creditors and bankruptcy trustees have the power to challenge the asset transfer and mandate the return of your assets to the bankruptcy estate.

Retirement Accounts

Similar to real estate and bank account assets, placing what money you have left into a retirement account is viewed as a big red flag to bankruptcy trustees. If a bankruptcy trustee catches wind of you suddenly transferring large amounts of money to a retirement account, they have the power to void these transactions, too, as they’re usually viewed as a sign of you trying avoid paying creditors.

Of course, if you’d already been making regular payments to a standard retirement account for several years prior, a bankruptcy trustee won’t void your payments simply due to bankruptcy. As long as you’re conscious of your monthly retirement account contribution before, during, and after filing for bankruptcy, you have nothing to worry about.

Creditor Payments

Sometimes debtors will try to overpay or prepay certain creditors in yet another creative attempt to dodge the financial requests of bankruptcy trustees or other creditors. There are some instances when prepayment is allowed, such as in payments made towards one’s mortgage, given that not doing so could result in you being displaced in the future.

However, if you owed money to family and friends, for example, and attempted to pay them back in large sums right before filing, the bankruptcy trustee can classify these payments as preferential treatment and once again void them. Make sure to speak to your bankruptcy lawyer before making any payments to certain creditors.

If you need assistance with or have questions about filing for bankruptcy, Brent George Law is here to help. Give us a call at 805-494-8400 or visit our contact page. Our first consultation is free of charge.