It's a well-known fact that medical expenses are eating up household budgets and causing families to sink deep into debt. In Michigan and throughout the country, the number one reason that people file a consumer bankruptcy these days is to get relief from medical debt. In a Chapter 7 bankruptcy, for example, 100 percent of all unsecured medical debt will be wiped out forever against the debtor or debtors.
Medical Debt Responsibility Act will likely not get passed again
A new bill intended to prevent medical debt from appearing on credit scores may, in fact, be dead. The Medical Debt Responsibility Act was intended to require credit score reporting companies to remove any medical debt from credit reports within 45 days of being resolved. However, for three consecutive years the bill has failed to be passed, and, if indications are true, it may fail again this year.
Chapter 7 filing stalls town as homeowner seeks protection
The current economic condition in the country may be blamed for causing many people to suffer financial hardship. As a result, many citizens and business owners who have fallen on hard times have sought relief from overwhelming debt by filing for a Chapter 7 bankruptcy. One such filing has forced a town to cease in its efforts to claim a property for back taxes. While this town is not located in Michigan, similar stories may be playing out here and throughout the country.
Medical debt reduction strategies for Michigan residents
When a Michigan resident is sick or injured he or she may require medical care to get better. In many cases this medical care is not a choice but a necessity if that person wants to live. However, the medical debt arising from hospital care and doctor's visits can become an astronomical burden -- one that is simply impossible for many Michigan residents to pay off.
