Paying Medical Bills with New Debts

Wasson and ThornhillPre-Bankruptcy Planning

paying for medical bills

Photo by Bermix Studio on Unsplash. You could pay your medical bills through many forms of borrowing—from putting them on a credit card to a home equity loan. What makes sense? About one-fourth (26%) of American adults (18-64 years old) reported that they or someone in their household had problems paying medical bills during the previous year. This is according … Read More

New Affordable Care Act Opportunities

Wasson and Thornhillpandemic

affordable prescriptions and other medical care

Photo by pina messina on Unsplash. Two major recent developments with the Affordable Care Act: a Special Enrollment Period is open until August 15, and coverage costs less. Our last several weeks of blog posts have been about health insurance and medical bills. Two weeks ago we got into the topic of health insurance and bankruptcy. Last week was a … Read More

Q&A about Medical Bankruptcy

Wasson and ThornhillBankruptcy Advice

medical room in hospital

Photo by Martha Dominguez de Gouveia on Unsplash. There is no such thing, legally speaking, as a medical bankruptcy. However, the majority of personal bankruptcies have a medical cause. The last two weeks we’ve written about health insurance. Two weeks ago we discussed the 6 months of free health insurance provided by the recent American Rescue Plan Act.  Last week … Read More

What If You Already Owe Income Tax?

Wasson and ThornhillIncome Taxes

no taxes without representation

Photo by Donovan Reeves on Unsplash. What if you already owe a prior year (or more) of income tax, regardless whether you expect to owe for 2020? What should you do and not do? What if you owe 2020 income taxes even though the IRS is not taxing $10,200 of unemployment income that year? That was our topic last week. … Read More

Don’t Waste Your Stimulus Payment

Wasson and ThornhillBankruptcy Advice

burning and wasting money

Photo by Jp Valery on Unsplash. It’s all too easy to think you’re doing the right and smart thing to pay your stimulus payment to creditors. Here are examples when it’s not. Before You Make Decisions That Hurt You Last week we introduced the radical idea that the best use of your upcoming or already received $1,400 stimulus payment might … Read More

Sell Your Home with Chapter 13 Help

Wasson and ThornhillSelling Your Home

sell your home

Photo by Ronnie George on Unsplash. Chapter 13 works with the pandemic’s mortgage payment forbearance process so that you can sell your home if and when you’re ready to do so. Last week we showed how Chapter 7 helps you take advantage of the pandemic foreclosure moratorium when selling your home. Today we show how it works even better with … Read More

More Foreclosure Moratorium Help

Wasson and ThornhillBankruptcy Advice

home in bankruptcy

Photo by Sven Brandsma on Unsplash. The mortgage foreclosure moratorium extension can be helpful. But it doesn’t help with judgment and tax liens on your home. Bankruptcy does so. Last week we wrote about the ongoing foreclosure moratorium and the related mortgage forbearance opportunities. We discussed how bankruptcy can hugely increase the practical benefits of this for you and your … Read More

Another Extension of the Mortgage Foreclosure Moratorium

Wasson and ThornhillForeclosure

man worried about foreclosure

Photo by [ik] @invadingkingdom on Unsplash. President Biden acted immediately to re-extend the previously extended federal foreclosure moratorium. It now goes through March 31, 2021. New Foreclosure Moratorium Extension through March 2021 On the day of President Biden’s January 20 inauguration, the White House stated that: he will ask the Department of Veterans Affairs, Department of Agriculture, and the Department … Read More

New Extension of the Student Loan Moratorium

Wasson and ThornhillStudent Loans

student chairs

Photo by Nathan Dumlao on Unsplash. President Biden acted immediately to re-extend the previously extended federal student loan moratorium. It now goes through September 30, 2021. New Extension through September 2021 On the day of President Biden’s January 20 inauguration, the White House stated that: the Acting Secretary of Education will extend the pause on federal student loan payments and … Read More

$600 Pandemic Relief Payments Protected

Wasson and Thornhillpandemic

pandemic caused closure

Photo by Edwin Hooper on Unsplash. The $600 pandemic relief payments now being distributed are protected from the reach of bankruptcy trustees, with some timing considerations. The federal Consolidated Appropriations Act (CCA) became law on December 27, 2020. It is reportedly the longest single bill that Congress has passed. Within its 5,593 pages are about 15 pages of temporary changes … Read More

$600 Pandemic Relief Payments Are Coming

Wasson and Thornhillpandemic

$600 cash

Photo by Alexander Mils on Unsplash. Now that Trump did sign the new pandemic relief law, and the increase to $2,000 is not happening, when and how are the $600 payments coming? Last Sunday (on December 27) President Trump signed the pandemic relief law that Congress had passed 6 days earlier. Because between its passage and before signing he’d surprisingly … Read More

Congress Agrees to New Pandemic Relief

Wasson and Thornhillunemployment benefits

money for relief

Photo by Blogging Guide on Unsplash. Congressional leaders finally announced an agreement for new pandemic relief, extending unemployment benefits and new stimulus payments. On Sunday evening, December 20, 2020, the U.S. Senate Republican and Democratic leaders announced that they finally agreed on a new pandemic relief package. Majority Leader Mitch McConnell said the following on the floor of the Senate: … Read More

No Federal Student Loan Payments through January

Wasson and ThornhillStudent Loans

college student

Photo by Element5 Digital on Unsplash. The pandemic’s federal student loan forbearance period which was expiring at the end of December has been extended through January 31, 2021. On Friday, December 4, the Department of Education extended a forbearance period that was expiring on December 31, 2020. Its press release says “[f]ederal student loan borrowers will not be expected to … Read More

Avoid Vehicle Surrender or Repossession

Wasson and ThornhillVehicle Loans

vehicle in driveway

Photo by Zachary Keimig on Unsplash. Use bankruptcy to avoid surrendering your vehicle or getting it repossessed. Then Chapter 7 or 13 will either buy time or allow you to keep it. We’re continuing a series of blog posts on the smart timing of your bankruptcy case. This week we get into filing bankruptcy to stop a vehicle repossession or … Read More

Student Loans and Chapter 7 Timing

Wasson and ThornhillStudent Loans

student

Photo by JESHOOTS.COM on Unsplash. You have to demonstrate undue hardship to write off a student loan. That often requires strategic filing of your Chapter 7 case. We’re in a series on the smart timing of your bankruptcy case. Last week we introduced the special condition you must meet to discharge (write off) student loans: “undue hardship.” Bankruptcy discharges other … Read More