As you have no doubt heard, Congress has approved and passed a complete overhaul of health care. Upon learning about this change, my first thought has been the possible effect the new legislation will have on chapter 7 bankruptcy filings and potential clients.
Many clients do file for bankruptcy after suffering a major health set back. These health problems have twice the impact as they introduce high medical expenses that are not always covered by health insurance and health problems also cause people to miss work and its accompanying paycheck. While the effects of new legislation remains unclear on how it will eliminate or effect medical bills, it is unlikely that new legislation will have much effect on bankruptcy filings.
Most bankruptcy clients choose to pursue bankruptcy because a setback to income has made it impossible to catch up on their bills. Whether they lost their job, suffered health problems, or lost overtime, potential clients fall behind on bills. Those bills quickly accrue interest and other fees until they are completely unmanageable. Thus, despite many clients best attempts, their last option is bankruptcy. If you find that this has happened to you or you are looking for any attorney to advise you on available options to overcome debt, contact our office today.
This post was written by Benjamin Yrungaray
Benjamin Yrungaray handles bankruptcy and loan modification cases at First Source Law. He is a member of the state bars of California (#256224), Pennsylvania (#208558), and New Jersey. He is also admitted in the Central District Court of California, Southern District of California, and New Jersey District Court.
