lapin_windstar

I thought bankruptcy laws/courts were federal?

Elvira

Bankruptcy is no longer an option for most:

"President Bush signed the biggest rewrite of U.S. bankruptcy law in a quarter century, making it harder for debt-ridden Americans to wipe out their obligations.......

Many debtors will have to work out repayment plans instead of having their obligations erased in bankruptcy court under the law, which will go into effect in six months. The 500-page legislation won final congressional approval last week after being pushed for eight years by banks and credit card companies. The measure would require people with incomes above a certain level to pay some or all of their credit-card charges, medical bills and other obligations under a court-ordered bankruptcy plan."

http://www.msnbc.msn.com/id/7575010/

scrubbedexpat099

Bankruptcy protection still exists. The only real difference is that you now must go through a "means test" to determine whether you can go through a Chapter 7 or a Chapter 13 bankruptcy. Essentially, if your income falls below a certain amount, you may be able to file a Chapter 7 bankruptcy. If not, you can still file for bankruptcy under Chapter 13.

Judging by this persons occupation, I would expect Chapter 7 may be possible. Anyway something we will never know and outside the scope of this thread. There are State variances on Bankruptcy.

The big big mistake she made was giving the hospital personal information, they have an obligation to treat her, she does not have one to comit financial suicide.

BigDavyG

To be fair this is probably not a bad thing.
With my father being an accountant I have heard many stories of small business going to the wall when debtors filed for bankruptcy. On the flipside I know of a couple of unsavoury characters who have filed for bankruptcy more than once yet still swan around in nice cars, etc.
Of course you'll probably correct me here by informing me that this legislation is intended to apply only to medical bills, in which case I'm not sure what to say :curse:

Bob

you'd end up paying the minimum they think you can afford every month, even if it is $5 a month...till you die, or paid it off...

Starseed

Can you elaborate? What kind of personal information are you referring to? Surely you have to give them your name and address? I got hospitalised in Oregon last year, & in my innocence just answered their questions honsetly.

Bob

Make up a name with no fixed abode...

fatbrit

Perhaps the shock of the illness might cause you to forget your name and address? Pain can do funny things to people!

scrubbedexpat099

A $92,000 bill would also have that impact on me.

katesbackagain

This is very true. Florida has just increased their exemption allowance for personal property from $1000 to either $4000 or $5000, forget which. That's a lot more personal property!!!!

krishnax

Do you mean the maximum they think you can afford?