It's always something...

[aces67]

we have been barely getting by but we were seeing a light at the end of the tunnel. Dh will finally get his raise this month and everything will be all caught up and then yesterday came....

After having loads of severe pain in my leg and foot I was diagnosed with a pinched nerve in my low back. I have to have an MRI, physical therapy and meds that are going to cost a minimum of $2000 after my insurance. The sucky thing is we're about to be broke, broke, broke and the trustee took our tax return. I knew he would but darn I really could use some spare cash now.

My MRI is Friday morning and I have to bring $900 with me to that appointment. Yesterday I had nerve conduction testing but they were nice enough to bill me and let me pay it out.

Any ideas how to handle this?? Should I call my attorney and telling him what's going on or is there really nothing he can do?? We're in a 13 and are on month 13 of a 60 month plan.

Amanda

[HHM]

You might be able to get a temporary payment forbearance, but those are only for about 2-3 months. About all you can do is call your attorney and see what he says.

[MajorMike]

Do you not have good insurance? I have never heard of paying out that much AFTER insurance....yikes!
You get to keep the stimulus that is coming in May by the way.
I'm surprised they made you bring CASH to the docs without billing you...how odd..

[qwertysue]

Do you not have good insurance? I have never heard of paying out that much AFTER insurance....yikes!
You get to keep the stimulus that is coming in May by the way.
I'm surprised they made you bring CASH to the docs without billing you...how odd..

Where did you find a ruling for all BK 13 filers that the stimulus checks do not have to be turned over to the trustees?

BTW, only direct deposit checks will be in by May. Paper checks will be staggered for release mid-May through mid-July, depending on SSN.

[MajorMike]

Well, my attorney said NO, they will not take them...but I wonder if he meant MY trustee only!

[MajorMike]

I'm glad we're direct deposit!!!!

[MajorMike]

Someone DID post this on a Q&A about the stimulus:

Based on my understanding, since you filed for bankruptcy protection in 2007 when you were not yet due the tax rebate, and presumably since the estate trustee has made no effort to claim the rebate prior to discharge, you should be able to keep the full tax rebate amount. This may be for Chapter 7 only but consult your attorney.

and another:

Kathy Says:

March 3rd, 2008 at 7:10 pm
My husband and I filed chapter 13 bankruptcy in Jan. 2008. Will we be able to
keep our rebate?

Raymond Says:

March 3rd, 2008 at 8:02 pm
Kathy,

This is a very good legal question for which I have no solid definitive answer. It is an issue that may have to be advised and litigated by your attorney as he or she so chooses.

The first step is to determine the position that your Chapter 13 bankruptcy trustee intends to take. The case would be moot obviously if he or she chooses to deem the economic stimulus tax rebate as an exempt asset from trustee control.

However, in my opinion, I think the tax rebate amount will likely have to be sent to the trustee unless it was exempted at filing. Since the tax rebate was not signed into law until February 2008, the rebate could not have been exempted at the time of Chapter 13 bankruptcy filing. Any such tax refund usually represents an over-withholding not permitted under Chapter 13. I think the amount will likely have to go to the trustee.

I'm thinking it depends....so ask your attorney and find out.

[Flamingo]

we have been barely getting by but we were seeing a light at the end of the tunnel. Dh will finally get his raise this month and everything will be all caught up and then yesterday came....

After having loads of severe pain in my leg and foot I was diagnosed with a pinched nerve in my low back. I have to have an MRI, physical therapy and meds that are going to cost a minimum of $2000 after my insurance. The sucky thing is we're about to be broke, broke, broke and the trustee took our tax return. I knew he would but darn I really could use some spare cash now.

My MRI is Friday morning and I have to bring $900 with me to that appointment. Yesterday I had nerve conduction testing but they were nice enough to bill me and let me pay it out.

Any ideas how to handle this?? Should I call my attorney and telling him what's going on or is there really nothing he can do?? We're in a 13 and are on month 13 of a 60 month plan.

Amanda

Unfortunately, you are running into what many in Chapter 13s run into; debt after filing. It's always gonna happen and the only way to prepare for it is save, budget, save and budget some more. There is no credit card to fall back on and it's all cash only for several years. The car will break down, the washer or dryer will die, the water heater will fritz and leak or the roof will develop a major leak. And in your situation, it's medical payments. Bills after filing are your responsibility. Do you have any family or friends that can help you out in the interim until your husband gets his raise and they you can pay them back? Your only other option is to contact your attorney and see what, if anything, can be done. Since there is a raise coming but you have more bills on top of that, you may want to discuss all that with him. It sounds like you have a high deductible insurance plan or HRA. While they are cheaper to get with low monthly or biweekly payments, you can get hit with big payments like you have for your MRI until you meet that deductible.

You know now that you will have to plan for things I mention above (fogot to mention those car tires too which may need to be replaced). Your title to your thread just says it all while one is in Chapter 13 - "It is Always Something..."

[krielly]

I saw this on the IRS Website yesterday......doesn't sound too promising.......

http://www.irs.gov/newsroom/article/0,,id=179095,00.html

see 4th paragraph under "Exclusions"

"Stimulus payments will be subject to offset against outstanding tax and non-tax liabilities in the same fashion as regular tax refunds."

[MajorMike]

Well, either way, it's fine with us. We owe the IRS and I'd rather have THEM pay for it then us....LOL

[krielly]

That's a GREAT way to look at it.

Never know what will happen. I'm sure like anything else in BK, things will be different from district to district, and state to state.

It's all subject to interpretation, and you know what they say about "opinions"............LOL!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!

[MajorMike]

LOL krielly, you are so right! We may all be surprised and get to keep it. I hope that is the case for you guys!!!!! The govt makes ENOUGH off people!

[MajorMike]

You know I was thinking. I saw that piece on the 8 people that won the powerball over the weekend and the amount was almost 300Mil...they took a lump sum and then the lump sum got taxed!! How the heck is that right? They get you coming and going !! Whatever!

[aces67]

Actually I have really good insurance. My deductible is $500 and my coinsurance is 20%. My maximum out of pocket is $2000 which includes the deductible. But MRI's and physical therapy are very expensive so I will end up having to pay the whole $2000. Where I live at ALL the hospitals ask for your deductible and coinsurance upfront and can refuse service if you don't pay unless it's life or limb threatening and this is not it's just really, really painful.

[MajorMike]

Ewww that stinks. We don't have any deductables on our insurance. I think that's why I asked. We pay $20 for doc visits and all surgery, tests, hospitalization...everything is 100 percent covered. We don't pay anything else.