Source: https://howardroitmanlawyer.typepad.com/vegas_injury_lawyer_crash/2009/09/las-vegas-injury-lawyer-on-knol.html
Timestamp: 2019-04-21 22:07:20+00:00

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Getting an Injury Settlement is No Wining Lottery Ticket.
After a serious injury the victims are taken by ambulance to the hospital, right? In fact the victims of a really serious injury may not be aware they are going to the hospital. And the healing begins at the hospital and probably involves a surgeon, operating rooms, recovery resources, other facility, etc., etc. Everyone wants to be paid for the good work they have done. Hopefully, there is a large settlement, to go around. Absent a settlement of the right size or good health insurance the debt is on the victim. Anohter round of greif starts when the debt is on the victium.
You don’t have to be a economist to see the connection between medical debt, bankruptcy.
There are two primary reasons these people go bankrupt. They either can’t get health insurance, or they can’t get their insurance company to cover their medical bills .A 2009 Harvard study showed a 50% rise in medical bankruptcy (bankruptcies linked to illness and medical bills) between 2001 and 2009. More often than not, the peopled who filed for personal bankruptcy actually had health insurance — but it wouldn’t cover their bills.
The first cycle starts as the victuim uses up his savings and assets to pay the bills. Then he uses up his creidit and his credit goes bad. A person with bad credit is viewed with suspicion and is charged significantly more for becouse of the procived greater risk of default,”.
victims are offtin especially distraught over Their loss of reputation, having done nothing wrong exset get hurt. Credit carefully nurtured for years, is destroyed overnight. At this point paying the bills becomes imposible and collection starts.
Counseling services are available to help people having trouble budgeting money and paying bills. Credit unions, cooperative extension offices, military family service centers and religious organizations are among those that may offer free or low-cost credit counseling.
Local, nonprofit agencies that provide educational programs on money management and help in developing debt payment plans operate under the name Consumer Credit Counseling Service (CCCS). They are members of the National Foundation for Consumer Credit (NFCC). To locate the agency closest to you, call 1-800-388-2227 or visit www.nfcc.org.
Several national nonprofit organizations also provide information and assist people with debt problems via the phone and Internet.
InCharge Institute of America. Visit www.incharge.org or call 1-800-565-8953.
Money Management International. Visit www.moneymanagement.org or call 1-866-899-9347.
Myvesta. Visit www.myvesta.org or call 1-800-680-DEBT.
What services do you offer? Look for an organization that offers budget counseling and money management classes as well as a debt-management plan.
Do you offer free information? Avoid organizations that charge for information or make you provide a lot of details about your problem first.
What are your fees? Are there set-up and/or monthly fees? A typical set-up fee is $10. If you're paying a lot more, you may be the one who's getting set up.
How will the debt management plan work? What debts can be included in the plan and will you get regular reports on your accounts?
Can you get my creditors to lower or eliminate my interest and fees? If the answer is yes, contact your creditors to verify this.
What if I can't afford to pay you? If an organization won't help you because you can't afford to pay, go somewhere else for help.
Will you help me avoid future problems? Getting a plan for avoiding future debt is as important as solving the immediate debt problem.
Will we have a contract? All verbal promises should be in writing before you pay any money.
Are your counselors accredited or certified? Legitimate credit counseling firms are affiliated with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.
Big upfront fees. A reputable credit counseling agency will send free information about itself and the services it provides without requiring you to provide any details about your situation.
Unrealistic promises. Some companies falsely claim they can solve problems for pennies on the dollar or remove negative information from your credit record.
Check with your local consumer protection agency and the Better Business Bureau to see if any complaints have been filed about the company.
The Fair Debt Collection Practices Act applies to those who collect debts owed to creditors for personal, family and household debts. These include car loans, mortgages, charge accounts and money owed for medical bills. A debt collector is someone hired to collect money you owe.
Within five days after a debt collector first contacts you, the collector must send you a notice that tells you the name of the creditor, how much you owe, and what action to take if you believe you don't owe the money.
If you owe the money or part of it, contact the creditor to arrange for payment.
Threaten to have money deducted from your paycheck or to sue you—unless the collection agency or creditor intends to do so and it is legal.
To file a complaint, contact your state or local consumer protection agency and the Federal Trade Commission.
By Phone: Call toll-free 1 (800) FED-INFO and speak to specially trained staff who can answer questions in English and Spanish about all aspects of the Federal government. Call between 8 a.m. and 8 p.m. Eastern Time to speak to a live agent. Recorded information on popular topics is available around the clock. You can also search our online knowledgebase at www.info.gov.
USA.gov - USA.gov is the “Front Door” to government information, services, and transactions. This site pulls together more than 180 million Federal, state, and local government web pages. Here, citizens can get easy-to-understand information and services from the government 24 hours a day, seven days a week. They can also use an e-mail form to send questions and comments in English and Spanish for a response within two business days.
Pueblo.gsa.gov - At www.pueblo.gsa.gov, consumers can read, print out, or save the current Consumer Information Catalog and the full text of all the publications listed in it. Consumers can access additional information on a wide range of subjects by clicking on different topic headings.
Kids.gov - Kids.gov is the official interagency children’s portal to the U.S. government. The site features more than 400 kid-friendly links in one easy-to-find place. The links are safe and age-appropriate. Kids can learn about everything from fighting crime and exploring the world to music and space.
In Print: FCIC also publishes both the Consumer Action Handbook and the Consumer Information Catalog, which lists more than 200 free and low-cost Federal booklets. Topics include health, Federal benefits, money management, housing, employment, small business, education, food and nutrition, cars, travel, consumer protection and more.
Today, there are legally accepted means for measuring loss of credit through the procedure of Credit Damage Measurement (CDM). CDM is fast becoming a potent tool for recoverable credit damage awards when the damage is not self-inflicted. Previously, both judge and jury, and especially the insurance companies, refused to acknowledge CDM claiming it was speculative because they could not define it as tangible damage. However, in case after case, victims of credit damage who use the CDM method are getting compensation for credit loss. Many factors are changing the old mindset including credit bureau technology improvements, the application of the Fair Credit Reporting Act (FCRA), risk scoring sophistication, and the development of CDM as an objective, repeatable method that measures out-of-pocket damage reliably.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) (Pub.L. 109-8, 119 Stat. 23, enacted April 20, 2005), was a law enacting several significant changes to the U.S. Bankruptcy Code. It was passed by the 109th United States Congress on April 14, 2005 and signed into law by President George W. Bush on April 20, 2005. Most provisions of the act apply to cases filed on or after October 17, 2005. Referred to colloquially as the "New Bankruptcy Law", the Act of Congress attempts to, among other things, make it more difficult for some consumers to file bankruptcy under Chapter 7; some of these consumers may instead utilize Chapter 13.
Only debtors whose monthly income is higher than the median income of their state, as calculated by the Code, are subject to being found abusive under § 707(b)(2). Debtors whose income falls below the median income figure may be in violation of the means test, however no party is permitted to file a motion in order to find abuse under § 707(b)(2), [see 11 U.S.C. § 707(b)(7)]. This creates a means test "safe harbor" for debtors below the state's median income figure.
Current monthly income is defined in 11 U.S.C. § 101(10A) as the monthly average of the income received by the debtor (and the debtor’s spouse in a joint case) during a defined six-month time period prior to the filing of the bankruptcy case. Some narrow classes of payments, for example, social security, are excluded from these figures. Notably, the average income may be higher or lower than the debtor's actual income at the time of filing for bankruptcy. This has led some commentators to refer to the bankruptcy code’s “current monthly income” as “presumed income.” It should be noted that if the debtor's debt is not primarily consumer debt, then the means test is inapplicable.
The applicable median income figure is adjusted by family size. Generally, the larger the family, the greater the applicable median income figure and the more money the debtor must earn before a presumption of abuse arises. A chart of the most recent applicable median incomes by state can be found at the US Trustee’s website.
This code section then requires a comparison between the debtor’s “current monthly income” and the median income for the debtor’s state. If the debtor’s income exceeds the median income, then the debtor must apply the means test.
An itemized list of the applicable IRS living standards can be found at the US Trustee’s website.
A “presumption of abuse” will arise if: (1) the debtor has at least $166.67 in current monthly income available after the allowed deductions (this equals $10,000 over five years) regardless of the amount of debt, or (2) the debtor has at least $100 of such income ($6,000 over five years) and this sum would be enough to pay general unsecured creditors more than 25% over five years. For example, if a debtor had exactly $100 of “current monthly income” left after deductions and owed less than $24,000 in general unsecured debt, then the presumption of abuse would arise, [see 11 U.S.C. § 707(b)(2)(A)(i)].
If a presumption of abuse is found under the means test, it may only be rebutted in the case of "special circumstances", [see 11 U.S.C. § 707(b)(2)(B)].
Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up their hands in sympathy, claiming victims can only be compensated for what can be measured — tangible goods and services. But, what happens when the victim has lost considerable time from work, the family bank is broke and monthly payments on mortgages, car loans and credit cards payments are missed? Regardless of the haggling between lawyers and insurance companies, it’s the credit victim who ends up having to live with a bad credit rating.

References: § 707
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 § 101
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