Orlando Medical Debt Lawyer
Since the end of the Great Recession, medical bill inflation has usually outpaced overall inflation. At the same time, the social services safety net isn’t as strong as it used to be. This combination often forces consumers into bankruptcy. As many as two-thirds of bankruptcy filings may be medical bankruptcies. This federal debt relief program offers substantial benefits for consumers. Many of these benefits are also available in non-bankruptcy debt negotiation situations.
The compassionate Orlando medical debt lawyer at the Law Offices of Carol M. Galloway understand the incredible stress that high medical bills cause. Many of the people on our professional team have lived through similar experiences. This compassion motivates us to work extra hard to find long lasting solutions for these families. We set families up for success. In fact, by the time their court filings fall off their credit reports, many of our clients have forgotten that they filed in the first place.
Non-Bankruptcy Negotiation
Most doctors, hospitals, laboratories, and other medical providers quickly sell unpaid accounts to debt-buyers (debt collection agencies). Usually, this fast referral is a bad thing. Debt-buyers are much more aggressive than original creditors. However, in the case of non-bankruptcy medical debt negotiation, the quick sale could be a good thing.
Medical providers focus exclusively on medical issues. Office managers and account managers usually have little interest in, or knowledge of, debt negotiations. Additionally, these individuals often have no authority to cut a deal without the doctor’s approval. Generally, physicians care even less about debt reduction negotiation than medical account managers.
Debt-buyers, on the other hand, focus exclusively on financial issues. Moreover, debt-buyers often do whatever it takes to make money quickly. They’d rather take fifty cents upfront than a dollar paid over time. Additionally, state lawmakers recently approved the Florida Consumer Collection Practices Act. Since the FCCPA takes many of the teeth out of debt collection practices, debt buyers are even more willing to negotiate.
Consumer Bankruptcy
Non-bankruptcy debt settlement negotiations are often successful. The in-bankruptcy negotiation success rate is even higher.
During most bankruptcy settlement talks, creditors have a duty to negotiate in good faith. They cannot make low-ball offers. Furthermore, they cannot simply go through the motions. They must earnestly want to settle the matter, and they must be willing to compromise.
Possible discharge, especially in a Chapter 7, is another reason in-bankruptcy medical debt settlement talks often work. Creditors know that if they don’t make favorable deals, the judge will most likely discharge the debt, leaving them with nothing. A fundamental rule of finance is that something is almost always better than nothing.
Reaffirmation agreements often come into play as well. Bankruptcy debtors may voluntarily agree to repay certain dischargeable debts. Some bankruptcy debtors keep a credit card open and reaffirm most executory contracts, like internet service provider agreements. Medical reaffirmation agreements are very common as well.
A reaffirmation agreement gives an Orlando medical debt lawyer a chance to renegotiate the terms of the debt. These modified terms could include partial or total UPB (unpaid principal balance) forgiveness.
Work With a Compassionate Orlando Medical Debt Attorney
Bankruptcy offers distressed debtors a way out. For a free consultation with an experienced Orlando medical debt lawyer, contact the Law Offices of Carol M. Galloway, P.A. Virtual, home, and after-hours visits are available.
