Having to file for bankruptcy due to health care costs is a bitter pill to swallow: like many bankruptcy filers, they feel being grouped with self-inflicted extravagant spending bankruptcies is a gross misrepresentation of their pummeling misfortune. 

  The majority of individuals filing a medical bankruptcy in the last year were insured: 78%, in fact.  One woman driven to medical bankruptcy in Coventry Rhode Island is determined to do something about it.

Kerry Burns was an accomplished social worker with a master’s degree.  When her toddler son was 3 ½, he entered intensive care for cystic fibrosis and stayed there for 13 months.  Over this period, her health costs reached a staggering 5 million dollars. The battle to save her 4-year-old son may have ended tragically, but Kerry Burns is going out fighting.

Bankruptcy remains the right solution for medical debtors; the public health care option wouldn’t change this, considering the 78% of filers that were insured.  Kerry Burns and others like her want to change the rules slightly: proposed medical bankruptcy legislation calls for eliminating the mandatory “credit counseling” session prior to medical bankruptcy. They also believe that medical debtors should have $250,000 of their property exempt to stay on solid ground.  She also contends that lawyers would still be paid their deserved charge in bankruptcy, but only after regaining some financial stability.

According to 2009 statistics, an individual files for a medical bankruptcy about every 30 seconds.  Legal Helpers wants to make personal bankruptcy easier during these rough times for you.  Please call 1-800-260-1402 for a free initial consultation with one of our attorneys and expert bankruptcy advice today.

As job losses and salary cuts continue to squeeze household budgets already burdened by increased credit card debt, personal bankruptcy filings in Connecticut skyrocketed 44% in the 3^rd quarter of 2009 as compared to the same time in 2008 according to a report from The Warren Group.

There were 2,569 personal bankruptcy filings for the three months ending September 30, compared to 1,773 filings in the same period in 2008, according to an article from the Hartford, Connecticut, newspaper, Courant.com. Quoted in this article was Donald L. Klepper-Smith, an economist at New Haven’s DataCore Partners Inc.  He states, “It all boils down to consumers that are stretched too thin. It's the basic lack of income in an economic downturn."

Some economists feel that Connecticut will lose 80,000 to 100,000 jobs as a result of the current recession. Experts also say that job relief will most likely be slow and cautious, not occurring in time for those facing personal bankruptcy.

In Connecticut and across the country, Chapter 7 filings spiked in 2005, before a new federal law went into effect making it more difficult and expensive for consumers to file for this court-supervised protection. Chapter 7 bankruptcy filings, which wipe out all debt except mortgage debt, totaled 2,275 in the third quarter, compared with 1,384 a year ago, a 64 % jump. Chapter 13 filings, which require a repayment plan, fell by 24 percent, to 294 in the recent quarter, from 389 in the same period in 2008.

This same article quotes Joel Grafstein, a bankruptcy attorney from Farmington, Connecticut. He states that the shift to Chapter 7 filing is probably an attempt for consumers to keep their homes.

Buyer Beware: Company Sale Spotlights Bankruptcy illegal Bankruptcy Sales

Acquiring property from an individuals’ bankruptcy sale or foreclosure is a fairly common practice: property that needs to be liquidated immediately can provide low rates on cars, homes, jewelry and more.  But what happens when your bankruptcy purchase has illegal ties, for instance with stolen cars and goods?  You can be held legally accountable?

Pirate Bay, (frequently noted as the largest “bit torrent” tracker in the world), would require millions of dollars to pay off its piracy fines and a great lawyer. They are continually pursued by both Swedish and Dutch governments despite trying to sell the company since early 2007.

Pirate Bay’s current operators actually claim they have no legal ownership of it, while its registered owner Reservella is in the Seychelles. Three different Swedish men in Dutch civil court absolutely denied any ownership of Pirate Bay, maintaining that they owned it up until 2006 when the Swedish government pursued them and they supposedly “sold” their shares.  Investigators are avidly attempting to prove that one of the Swedish men is actually the elusive CEO of Reservella.

The new prospective owners, however, had their own hunk of debt, and were (perhaps fortuitously) prevented from purchasing Pirate Bay. Swedish GGF’s stock was delisted, one of the routines of bankruptcy.  Bankruptcy is holding back the only serious buyer Pirate Bay has had for its two whole years on the market: perhaps the discouragement will bring the actual Pirate Bay owners into the light.  With this publicity, what potential buyer would sign on for ownership that would almost guarantee criminal prosecution?

Personal bankruptcy auctions are usually much less shady, and are an important step to repaying your debts. To find out whether your Chapter 7 or Chapter 13 personal bankruptcy will implement an auction to bring you closer to financial freedom, call one of Legal Helpers’ representatives today.  We offer a free initial consultation, valuable bankruptcy advice, and are available toll-free 6 days a week. Call us for debt relief today at 1-800-260-1402.