Chapter 13 Budget Question

[rickyallen12]

I have searched everywhere and cannot find the answer. How do deductibles work on insurance. I pay almost $100 per month for my medical however i have to pay $2500 before my insurance pays 100%, Now i am planning on have surgery with a year to two years. My question is can i count the $2500 in my budget since i have to pay this? Also what about a auto deductible? I make a monthly payment but if something happens i have a $500 deductible that would not be budgeted for. Can this be included?

[Nicollette]

Im not sure about the medical deductible, but I have a $500 deductible on my auto insurance, and I dont think my deductible for the auto was budgeted for, just my monthly amount that I pay.

[13for60]

What I was told for a very similar situation was that we would need to "save" the money needed to cover a deductible by unspent budgeted $$ from other areas (like food, etc). We were told there is no "line item" for "saving for deductible."

The reality is when a medical deductible is accrued, I imagine that's the time to call the attorney and amend the plan to adjust for the deductible payment. I'm in California, and when I check out the various Trustee's websites, they all say, "Hey, life happens - just call us when you have a change of circumstances." SOunds kinda like lip service to me - I would be interested to see what happens when that is put to the test.

Sorry - i hope this helps.

--13for60

[momofthree]

For the medical deductible, isn't this something that you've encountered every year? If so, then I'd count it in your out-of-pocket medical expenses each month ($208/mo)--with your insurance having such a small premium, I don't think that's unreasonable at all. Or is this a new insurance plan so there's no history of you having the out-of-pocket expenses?

Auto deductible, you should be able to save that up no problem from your vehicle operating expense/maintenance budget, not to mention the chances of you actually having to use that are pretty low.

[kornellred]

Auto insurance deductibles only apply when you make a claim. It is uncertain as to whether you will make a claim in the future, so the issue is moot when it comes to Chapter 13 bankruptcy. Medical expenses are far more predictable and necessary, so the deductibles for that are legitimate expenses which will inevitably occur, and so they must be included in the bankruptcy schedules.

[Pandora]

We count our medical deductible in our monthly budget - absolutely! It's something you have to pay every year in addition to your premiums, copays, medications, etc.

Car insurance deductible - nope - that isnt a guarentee because you dont know if you're going to be in an accident every year to claim that. As momofthree stated, just take it out of your car maintenance allotment.

[jrippon]

My wife is pregnant and we're on a high deductible independent healthcare plan ($7500 for maternity). Our attorney added this as an expense on our Schedule J. He said there was about a 50% chance the trustee wouldn't object. Our 341 meeting is on 11/5 -- I'll post back when it's finished.

[forgotten]

I have searched everywhere and cannot find the answer. How do deductibles work on insurance. I pay almost $100 per month for my medical however i have to pay $2500 before my insurance pays 100%, Now i am planning on have surgery with a year to two years. My question is can i count the $2500 in my budget since i have to pay this? Also what about a auto deductible? I make a monthly payment but if something happens i have a $500 deductible that would not be budgeted for. Can this be included?

Can you setup a FSA at your work? You shouldn't have any issues with that expense as the funds can not be used for anything other than healthcare.