Health And Bankruptcy
Introduction.
Leaving aside all the controversy and politicking going on around the current federal health insurance proposals, the fact remains that buying any insurance is by and large only done begrudgingly – even when it is for something as essential as health insurance. With unemployment still rising in the USA, pension plans barely worth the paper they’re written on and the threat of mortgage foreclosure hanging over us – increasing numbers of Americans are letting their health insurances slip. For some people this will be a temporary step they’re forced into but others may well think that in the face of a future large medical bill – bankruptcy might well be a viable option.
Don’t rush into bankruptcy.
Becoming a bankrupt you could literally lose everything!
Bankruptcy will clear all your debts in one fell swoop; however, it is not an option that you should consider lightly – certainly not one you should consider without consulting a financial expert. Once you are declared bankrupt your creditors, which in this case will probably mean a hospital or medical practice, can legally claim and then have any of your assets sold in order to clear your debts. Even worse they can investigate all of you finances for the previous 5 years and, should they find any funds or resources that you thought you had ‘hidden’ away, they can appropriate those too to help clear the debt. So, especially bearing in mind that bankrupts invariably lose their homes, if they own them or are mortgage payers, bankruptcy should only be considered as a very last resort when you have literally nothing else to lose.
Individual Voluntary Arrangements.
Simply referred to as IVAs, Individual Voluntary Arrangements work in a similar way to debt consolidation loans. However, unlike in a debt consolidation loan when all your debts are re-structured into one loan by a finance company an IVA is arranged by a specialist insolvency agency who fix it for you to pay your creditors a percentage of the debt(s) you owe to them separately. IVAs usually stand for five years at the end of which, providing you have paid off the agreed amounts in full, any remaining debt is in effect cancelled.
