Does Bankruptcy Wipe Out Medical Debt? – The gallery
DEAR LAWYER MARK: I have problems and need advice.
My wife and I had some pretty serious financial problems, and they only got worse.
My wife just got really sick and her medical bills are huge.
We don’t have insurance, and we have no way of paying for them.
Some doctors even threaten to sue us for not paying.
My question is, can we ruin the medical bills.
We also have a lot of other bills, but the doctors bills are the worst, so we just want to get rid of them. – BECOME POORER
Dear Poorer: Yes, you can usually go bankrupt for your medical bills.
When you file for bankruptcy, you need to make a list of all your debts and assets.
There are generally two types of debt: secured and unsecured.
Secured debt is debt in which you have borrowed money to purchase an item, spent the money on that item, and agreed to the lender using the item as collateral.
Unsecured debt is when someone has a general account for you or loans you money without getting collateral, like a credit card or, as in your case, hospital bills.
When you file for bankruptcy, a secured creditor can either take back the collateral, sell it, or make you pay it.
Unsecured creditors, however, only get money if your assets exceed what the law allows you to keep.
Because it depends on very specific factual circumstances, I recommend that you consult a lawyer before being sued for the bills.
DEAR LAWYER MARK: I own a small business and have a terrible employee.
This person is fundamentally incompetent in his job and has a terrible attitude towards me and the audience.
My problem is that I’m afraid that if I fire her, I will have to pay unemployment.
In fact, I even heard her say that she hopes she gets fired so she can get it back.
If I have a good reason to fire her, will I have to pay? – EMPLOYER
Dear Employer, An employer is not obligated to pay unemployment benefit in all cases when an employee is made redundant.
If an employee is terminated for cause and the unemployment office finds that there was a legitimate reason, the terminated person will not be unemployed.
I recommend that before terminating the employee, you have adequate written documentation showing where you reprimanded the employee and told them to take corrective action.
The documentation will provide you with a good defense if the employee claims she was wrongly fired and tries to collect unemployment or tries to sue you.
THOUGHT OF THE WEEK: The reckless man reflects on what he has said; the wise man, on what he will say.
It’s The Law is written by attorney Mark K. McCown in response to legal questions he received. If you have a question, please forward it to Mark K. McCown, 311 Park Avenue, Ironton, Ohio 45638, or email him at LawyerMark@yahoo.com. The right to condense and / or modify any questions is reserved.