Finance: Bankruptcy Medical Article Category

You have probably heard someone use the term "medical bankruptcy." This is a word commonly used by individuals who either are going through a medically related financial crisis, or are acquainted with someone who is facing severe medical debt. Although medical bankruptcy is not a legal term, it is a useful term to describe a financial remedy for an individual who may have reached the end of their rope because of medical debt.

Medical bankruptcy can be a misleading term because there is no legal remedy available exclusively for medical debt. In general, bankruptcy is the dissolution or reorganization of some or all of an individual's debt. When you file for any type of bankruptcy you must include all your debt. This would apply to home mortgage loans, car loans, credit cards, and medical debt. There are several types of bankruptcies, but most individuals filing a bankruptcy for medical debt will typically file for a Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 bankruptcy may allow an individual to eliminate their debt, while a Chapter 13 bankruptcy can allow an individual to reorganize their debt into a 3-5 year plan, while at the same time reducing the principle on their debt.

The idea that a medical bankruptcy exists as a legal remedy may have developed because the court handles medical debt in a different way than they might other types of debt. Not all debt will receive the same treatment in court. A bankruptcy court will generally divide an individual's debt into two classes: Secured Debt or Unsecured Debt. Secured debt is the type of debt that is usually tied to assets like an auto loan or home mortgage. Unsecured Debt is usually not tied to assets, yet can often be eliminated or greatly reduced through a bankruptcy. It's important to realize that medical debt is usually classified as an unsecured debt.

While the term "medical bankruptcy" is not a legal term, it is a useful way for an individual to describe how their finances fell into chaos. An experienced bankruptcy attorney will immediately understand what a client needs when they inquire about a medical bankruptcy. A bankruptcy attorney can then inform them how a bankruptcy could be a solution to their financial hardship caused by medical debt, and even help the individual decide whether a Chapter 7 or Chapter 13 is most appropriate for their situation. Once an individual has decided the best course of action, the attorney will then lead them smoothly through the legal process of filing, and obtaining a bankruptcy.

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Getting a Car Loan With Bad Credit Is Easier Than You Think

Car loans for people with bad credit are becoming more and more common as millions of Americans are losing their jobs and becoming less 'credit worthy' and more 'credit challenged'. These days, if your credit is less than perfect, you should not have too much trouble getting the car you desire. Several thousands of bad credit loans are issued daily in the United States.
Before you apply for a bad credit car loan, there are a few things you can do to make sure the process flows smoothly. After all, this is still a specialized area.
Examine your credit history
Credit reports change for various reasons. Experts advise you review your personal credit report no less than once a year. This ensures accuracy. Computers might be perfect, but the people inputting the data are - human. Mistakes and omissions can occur. This becomes especially important when you apply for a bad credit car loan. There are several services available that will send you up-to-date credit reports. However, not all of these services are free. If you do a little bit of your own homework, you can accomplish the same results all on your own, or find a government program that offers these services free of charge.
Figure out how much you can comfortably afford
Sure, many of us have dreams of owning a Lamborghini, but that is not only an unreachable dream, it is impracticable. Who wants to drive to the grocery store in a Lamborghini? You should set your sights on a vehicle you can afford without putting additional stress on your finances. Not just the down payment, you also need to consider the monthly payments and insurance premiums. A car loan calculator is a nifty tool to help you figure out exactly what your payments will be, how much the vehicle will cost you after all of the interest charges and how much insurance premiums might be. Higher end cars carry higher premiums.
Provide proof of income
Proof of your income sources is the number one requirement in any type of lending situation. Having this documentation close at hand - pay stubs, settlement payment receipts, alimony, etc. - is very important. You will be asked, so having it ready and available will speed up the process of getting your bad credit car loan.
Keep your credit history clean
Make every possible effort to make your payments on time. Setting up smaller payments - that fit within your budget - will make this easier to maintain. Stay within what you can afford! That is the main focus. If you do find yourself in need of immediate cash, avoid unscrupulous title loans. Too many people have lost their cars due to unfair terms. Refinancing your car loan may be a better alternative.
In no time you will have re-established a good credit score, a good re-payment record and maybe you will be able to get that Lamborghini after all.

Mike McTigue is an Automotive Journalist and former Car Dealer with a unique insight into the auto financing industry, and special financing.

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