Pending Bankruptcy Reforms Favor Debtors For many years, typical consumers could choose between filing under Chapter 7 or Chapter 13 of the US bankruptcy code. In Chapter 7—the far faster option—an independent trustee liquidates the debtor’s available assets and makes distributions to creditors. In Chapter 13, debtors contribute their income to a trustee who makes…
The Affordable Care Act of 2009 required all states to expand Medicaid for the working poor. The federal government would pay all the costs of expansion for three years, and 90% of the cost thereafter. However, this expansion became voluntary after a lawsuit in 2012…..and ten Southern states have still refused to participate. This leads…
I have been saying for years that healthcare reform will require some far-reaching legal decisions. Here is a relevant true story, brilliantly documented by Dan Weissman in his podcast An Arm and a Leg for April 13, 2023. The story begins with a patient whose doctor recommended a complex back surgery, in order to keep…
I was recently shocked to read that U.S. military veterans are carrying billions of dollars in medical debt. We must provide full debt relief for veterans. I had always assumed that the Veterans Administration was a rare American example of single-payer generosity. But here is what I found out. #1 – If a veteran has…
The Supreme Court may rule against Joe Biden’s plan for a $10,000 student loan forgiveness. We should know the outcome by mid-summer. However: The Biden proposals also included a dramatic expansion of Income-Driven Repayments. These repayment changes are ultimately more favorable to debtors than the $10,000 in straight forgiveness. The repayment reforms are in a…
Monica Prasad’s excellent article for the Niskanen Center in 2019 is entitled: “The Trade-Off between Social Insurance and Financialization: Is There a Better Way?” She comments: “The more a government spends on social insurance, the less likely households are to fall into debt. Social insurance includes pensions, health care, family allowances and parental leave, job…
The Nebraska legislature is reviewing a law that would prevent any medical provider from harassing an assault victim over the medical care they receive for their injuries. The state does have a Reparations Fund, but over half the applicants are denied. Survivors of sexual and domestic assault are getting threats of collection. It is repulsive…
ProPublica reporter Marshall Allen has written a great book on how to deal with medical debt. In “Never Pay the First Bill (and Other Ways to Fight the Health Care System and Win)” he likens today’s health care system to a bully – squeezing and taunting the consumer. In a moment of candor, a hospital finance department…
There are several encouraging “extras” in Biden’s August announcement of $10,000 student loan forgiveness. #1. The income-based payment rate for undergraduate loans will drop from 10 percent of discretionary income to just five percent. #2. The Department of Education will raise the amount of income considered non-discretionary. (This is an allowance applied before income-based payments…
When any of us are charged with a crime, we could be faced with a flood of financial charges – even if we are ultimately acquitted. There are charges for processing arrests, for “rent” while in jail, and a potential fee up to $90 a hour for the use of a public defender. Later, there…