Law for Real People - John Gear Law Office & Salem Consumer Law 503-569-7777

Outstanding FREE Online Resource "SURVIVING DEBT" to read if you are struggling financially due to COVID-19 (or for any other reason)

4/6/2020

The heroes at the National Consumer Law Center (NCLC.org) have made their comprehensive 50th Anniversary guide for debtors called “Surviving Debt” available at no charge for ANYONE.

This is an outstanding resource for ordinary folks who don’t want to try to read law books or statutes etc. It’s in clear, plain English. I have given away more than two dozen copies to friends and clients and it’s usually the first book I reach for when someone has a question about how to manage their debts of ANY kind.

While you isolate in place, if you are worried at all about your finances, take the time to read the first 10 short chapters and then the chapters for your type of debts. So you don't have to read it all -- just the first couple chapters and then the chapters that pertain to your type of problem.

(And if you yourself are able to make a contribution to NCLC, they would welcome it and put it to good use.)

Find it here: https://library.nclc.org/SD

Chapters

OREGON & COVID 19: insurance firms must extend premium & claim deadlines; and State offers help desk you can call with questions

3/26/2020

State issues grace period order for insurance deadlines

Salem – The Oregon Department of Consumer and Business Services issued a temporary emergency order today in response to the COVID-19 outbreak. It requires all insurance companies to extend grace periods for premium payments, postpone policy cancellations and nonrenewals, and extend deadlines for reporting claims.

The COVID-19 outbreak has caused widespread business closures, job losses, and social distancing measures. This severe disruption to business in the state includes some Oregonians’ ability to make insurance premium payments, report claims, and communicate with their insurance companies.

“During this crisis, we must all do our best to help Oregonians focus on staying healthy, care for their families, and prevent the spread of the coronavirus,” said Andrew Stolfi, insurance commissioner. “Many of our insurers have already stepped up and done the right thing. This order will ensure every Oregonian who needs it has relief from these insurance policy terms, giving them a measure of security and stability.”

Insurance companies must take steps immediately to do the following until the order is no longer in effect:

Institute a grace period for premium payments on all insurance policies issued in the state
Suspend all cancellations and nonrenewals for active insurance policies
Extend all deadlines for consumers to report claims and communicate about claims
Provide consumers the ability to make premium payments and report claims while maintaining safe social distancing standards

The order is effective immediately, and will be in force through at least April 23. If necessary, the department may extend the duration of this temporary order.

If Oregonians have questions or concerns about their insurance company or agent, they can contact the department’s advocacy team at 888-877-4894 (toll free) or visit dfr.oregon.gov for more information or to file a complaint.

For insurance and financial services information related to COVID-19, visit the department’s website:
https://dfr.oregon.gov/insure/health/understand/Pages/coronavirus.aspx.

Please watch if you need relief from your bills during COVID-19 slowdown

3/26/2020

Fellow consumer attorney Ian Lyngklip of Michigan produced this helpful video that you should watch if you are stressed about bills during work interruption from COVID-19.

Good Advice if you Have Medical Debt

2/17/2020

Image of Cover of "Collection Actions: Defending Consumers and Their Assets" Fourth Edition by NCLC (National Consumer Law Center)

Guide to Reducing Hospital Bills for Lower-Income Patients
by Andrea Bopp Stark

As described below, hospital debt poses a significant problem for millions of Americans. This article provides a nine step approach for lower-income patients seeking to eliminate or reduce hospital debt.

Medical Debt Is a Widespread and Serious Problem

More than 27 million Americans lack any health insurance—58% of low-income working adults, 44% of young adults, and 35% of Latinx adults. In addition, almost 50% of nonelderly adults have insurance that requires high deductibles and significant out-of-pocket costs. In recent years the number of Americans uninsured or underinsured has been growing.

As a result, a high number of families are burdened with medical debt:

• 20% of uninsured adults went without needed medical care in 2018 because of the cost;
• 59% of people contacted by a debt collector said it was over a medical debt;
• 20% of Americans have at least one medical debt collection item on their credit reports and 58% of debt collection accounts reported on credit reports are for medical debt;
• 66% of all bankruptcies were tied to the cost of medical care or time lost from work due to an illness or injury.

For more detail on the extent of medical debt and for the sources for the above data, see NCLC’s recent report, An Ounce of Prevention: A Review of Hospital Financial Assistance Policies in the States (Jan. 2020).

As a result, there is an urgent need to address consumers’ medical debt problems. A detailed discussion is found in NCLC’s Collection Actions Chapter 9. This article provides a nine step approach for lower-income Americans to reduce or avoid their hospital bills.

Step 1: Don’t Prematurely Pay Even Part of the Hospital BillDepending on the state and the patient’s income, the bill may be waived in whole or significantly reduced—there is no benefit in making payments that may not be owed. Nor is there any downside in delaying payment:

• The major credit reporting agencies (Equifax, Experian, and TransUnion) have agreed pursuant to a nationwide attorney general enforcement action not to report negative information about medical bills for 180 days.

• State actions may provide other limits on credit reporting of hospital debt. Minnesota hospitals and their debt collectors cannot report a patient to a credit reporting agency for any patient’s failure to pay a medical bill. Maine prohibits credit bureaus from reporting medical debt on a credit report for 180 days after the first delinquency. Washington prohibits collection agencies from reporting medical debt to credit bureaus until at least 180 days after the collection agency receives the debt for collection or by assignment. See generally NCLC’s Don’t Add Insult to Injury: Medical Debt & Credit Reports (Nov. 2019).

• Bills are unlikely to be immediately sent out to a collection agency, and if that happens a simple letter from the patient or the patient’s attorney often will stop the collection contacts. See NCLC’s Fair Debt Collection § 5.10.

By federal law, a hospital cannot deny a patient emergency room services because of unpaid hospital bills. See NCLC’s Collection Actions § 9.3.3 Nonprofit hospitals cannot deny any form of care for at least 120 days after the hospital bill is sent. See NCLC’s Collection Actions § 9.3.1.5.2. Nor is the hospital likely to deny the consumer other services for at least a short period after the bill remains unpaid.

Thus the first step in dealing with debt from a nonprofit hospital is delaying any payment on the hospital bill until a determination is made whether the patient qualifies for financial assistance that will lower or eliminate the bill. This includes never putting the hospital bill on a credit card. A card company will charge interest on amounts that the consumer might not ever have to pay. Putting the bill on a credit card is never a good idea because the patient loses the ability to negotiate for lower amounts, either due to financial assistance policies or because the bill is for “chargemaster” prices, which are often several times what insurance companies or Medicare/Medicaid pay. Also, a hospital almost certainly will charge less interest and be more forgiving than a credit card issuer.

Step 2: Determine If the Consumer Is Medicaid EligibleDetermine if the patient is Medicaid eligible. In some but not all states Medicaid coverage is retroactive to hospital bills incurred over the prior three months. Even where a state does not allow retroactive coverage, if the patient is found to be Medicaid eligible then at least for future bills they will have that source of payment for any follow-up treatment or other conditions.

Apply for Medicaid by going to www.healthcare.gov or calling 800-318-2596, or at the local public assistance office. Eligibility for Medicaid varies from state to state and depends on family income and may also depend on family resources. Some states limit Medicaid to certain groups of people, such as children and pregnant women. However, people in many states automatically qualify so long as their income is 138% of the poverty line or below. (In 2020 the income limits are: $17,236 for a family of one; $23,336 for a family of two; $29,435 for a family of three; and $6,100 for each additional family member. The poverty line is higher in Alaska and Hawaii.)

Sometimes children are eligible for Medicaid even if their parent is not. Medicaid’s Early and Periodic Screening, Diagnostic, and Treatment (EPSDT) requirements mandate coverage of a broad array of diagnostic, preventive, and treatment services for beneficiaries under age 21.

In addition to Medicaid, some states may offer other programs to help lower-income patients with healthcare bills. Ask the hospital financial counselor or patient advocacy organizations in your state for more information.

Step 3: Determine If a Hospital Is a NonprofitAs described below, a consumer has additional federal rights concerning a hospital bill if the hospital is a nonprofit 501(c)(3) entity, and additional state law rights may apply as well in a few states. To determine if a hospital is a nonprofit, go to the IRS website. In particular, go to the IRS tax exempt organization search page and search by organization name (under the drop down starting with employment identification number). The website will only identify if a hospital is a 501(c)(3) entity. If the hospital is not found, it may be that it is still nonprofit but under a different name (such as hospital’s parent entity) or the name has not been included in this database.

It is always wise to check to see if a hospital is a nonprofit even if it does not show up on the above website. Alternative methods of determining if a hospital is nonprofit include checking the hospital’s website, asking a hospital administrator, or talking to the hospital’s billing office.

Step 4: If the Hospital Is a Nonprofit, Understand Consumer Rights Under Federal LawThe Affordable Care Act (ACA) (also known as Obamacare) imposes certain requirements on nonprofit hospitals with 501(c)(3) IRS tax status concerning their financial assistance policies for low-income patients. Hospitals must create a written financial assistance policy (FAP) and a written emergency medical care policy. The financial assistance policy must disclose:

• The eligibility criteria established by the hospital for receiving financial assistance and whether such assistance includes free or discounted care;

• The basis used to calculate how much patients are charged for care;

• A description of the methods for applying for financial assistance;

• If applicable, any information other than that supplied by the patient used by the hospital to determine financial assistance eligibility, including prior determinations of eligibility; and

• A list that shows which of the hospital’s doctors and health care providers are covered by the financial assistance policy and which are not covered.

Federal law does not require hospitals to offer any special level of financial assistance and does not specify who is eligible for financial assistance. Federal law only requires that nonprofit hospitals have a written policy and that this policy and the method for applying for assistance be disclosed.

Step 5: Whether the Hospital Is Nonprofit or For-Profit, Understand Rights Under State LawUnlike federal law, state laws often specify standards for how much financial assistance a hospital must provide a patient of a given income level, and these state laws typically apply both to for-profit and nonprofit hospitals. But applicable state law varies significantly from state to state.

For example, ten states have enacted laws that require hospitals to provide a full spectrum of free and discount care for patients under specific eligibility standards, primarily based on income: California, Connecticut, Illinois, Maine, New Jersey, New York, Nevada, Rhode Island, Washington, and Maryland. On the other hand, five states (Hawaii, Montana, New Hampshire, Wisconsin, and Wyoming) have no financial assistance requirements. The other thirty-five states are somewhere in between.
Even among the ten states that have strong protections, there are differences. In Maine, all hospitals must provide free care for patients whose household income is up to 150% of the federal poverty level (FPL), but there is no discount care at all for those with higher incomes. Illinois on the other hand requires all hospitals to provide free care for those who are uninsured with family income of up to 200% of the FPL or up to 125% FPL for rural or critical access hospitals. But Illinois also mandates discount care for those with family income of up to 600% of FPL.

A number of states provide requirements only for nonprofit or state hospitals (Oregon, Texas, and Louisiana). Some states provide assistance directly from the state for hospital bills (Massachusetts, Colorado, and South Carolina). There are even more variations in other states.

Detailed state-by-state summaries of financial assistance requirements are available from two NCLC resources: NCLC’s An Ounce of Prevention: A Review of Hospital Financial Assistance Policies in the States (Jan. 2020) and NCLC’s Collection Actions § 9.4.3. An Ounce of Prevention includes eight appendices summarizing each jurisdiction’s type of financial assistance as well as who is eligible, the source of funding for the plans, and the statutes (if any) that mandate the assistance, which allows advocates and legislators to compare their state with the policies in other states.

NCLC’s Model Medical Debt Protection Act (Sept. 2019) provides language for a model state law mandating financial assistance for lower-income hospital patients. The model act specifies eligibility guidelines for financial assistance, provides specific guidelines for charity and discounted care, and includes procedural safeguards to protect consumers from aggressive or unfair debt collection practices.

A growing number of states have also enacted “surprise” medical debt legislation—at present about half the states have this legislation. Surprise medical debt laws limit bills from out-of-network physicians providing services at an in-network hospital. These laws address the situation in which a patient assumes their insurance covers care at an in-network hospital only to be surprised that an individual doctor’s bill at the hospital is not covered by insurance. There are also some state laws dealing with balance billing—where a hospital agrees to receive less than the full chargemaster price from the insurance company and then bills the patient for the difference. See NCLC’s Collection Actions § 9.4.3.1.

Step 6: Obtain the Hospital's Financial Assistance PolicyIt should not be difficult to obtain a hospital’s financial assistance policy (FAP). For nonprofit hospitals, federal law requires hospitals to:

• Provide the FAP, a plain language summary of the FAP, and the FAP application on the hospital’s website and, upon request, by mail and in public locations including the hospital’s emergency room and admission area;

• Offer paper copies of the FAP’s plain language summary as part of the intake or discharge process;

• Set up conspicuous public displays that notify patients about the FAP, including at a minimum, in the hospital’s emergency room and admission area;

• Include a conspicuous written notice on billing statements that alerts and informs patients about the availability of financial assistance under the hospital’s FAP, the telephone number of the hospital department that can provide information on the FAP and application process, and the website where copies of the FAP can be obtained;

• For certain communities, hospitals must provide written translations of the FAP, the plain language summary, and the FAP application into the primary language spoken by that limited-English-proficiency population.

The above requirements apply to nonprofit hospitals, but for-profit hospitals may use some of the same methods to publicize their policies. If all else fails, ask the billing office for a copy of any financial assistance policy.

Step 7: Compare the Financial Assistance Policy with State Requirements and the Individual Patient’s CircumstancesMany hospitals will have a financial assistance policy. Federal law requires every nonprofit hospital to have one, some states require all hospitals to have one, and even where a for-profit hospital is not required to have one by federal or state law, it may still voluntarily have such a policy. For example, Vermont hospitals have all voluntarily created financial assistance plans.

Compare the policy with any state requirements. In a shockingly large number of cases hospital financial assistance policies do not comply with state law. See NCLC’s Collection Actions § 9.4.3.1. Then compare the policy with the patient’s income and the type of care the patient received to see if the patient qualifies for assistance.

Step 8: Applying for Financial Assistance
After determining whether the patient’s income and family size qualify under the financial assistance policy, make sure that the hospital procedure is covered by the financial assistance policy. Some procedures such as cosmetic surgery may not be covered.
Next, find out how to apply for the assistance. The patient may have to provide a detailed budget, list of assets, information about family members, tax returns, or proof of income. Federal law requires nonprofit hospitals to explain in their financial assistance plan the procedure for applying for financial assistance. If the financial assistance plan does not fully explain the application process, call the hospital’s billing office for more information. Do not delay as many programs only give you about 240 days after the care or procedure to apply for assistance.

Federal law places certain requirements on a nonprofit hospital’s handling of an application for financial assistance, such as a denial cannot take place because of missing information not specified in the hospitals disclosure of application requirements. If a nonprofit hospital provides limited financial assistance without even reviewing an application for assistance, the patient still has the right to seek additional assistance. See generally NCLC’s Collection Actions § 9.3.1.5.5.

Step 9: If an Application for Financial Assistance Is DeniedIf a patient is denied assistance, some hospitals may have an appeals process. Pay attention to the time allowed for any appeal. There may be steps to preserve a claim for financial assistance.
If the patient ultimately does not qualify for assistance, some hospitals provide payment plans to pay off the debt over an extended period of time. But a patient should never agree to a payment plan that the patient cannot afford or that would prevent payment of other of the patient’s debts.

Hospital debt should be treated as a lower priority debt compared with rent, utility, mortgage and automobile loans, and most other forms of debt. Non-payment of that other debt will have serious immediate adverse consequences, while hospital debt may have little negative effect for six months (as described above) and it may be years, if ever, before a judgment is taken against the consumer for the debt. Also, hospital debt is unsecured debt that is fully dischargeable in bankruptcy.

When a judgment is taken against a patient, it will be important to determine the patient’s exposure to wage garnishment and seizure of bank accounts or other property. But some low-income patients may be totally judgment proof.

Be aware that under state necessaries statutes or common law doctrines a spouse may be liable for the other spouse’s treatment and a parent for children’s treatment. For more detail, see NCLC’s Collection Actions § 9.6.

New Resource for Traditional and Non-Trad Funeral Planning in Oregon

11/25/2019

Worthwhile information in here -- worth checking out.
Click on photo above or point your browser to https://www.oregonfuneral.org/

Cool -- Guide to Finding All Veterans Benefits in Every State

11/13/2019

Graphic of website search engine for veterans benefits

Click on the photo above to be taken to a cool search engine that compiles state-specific and federal benefits in one place for any state. Here's today's printout for Oregon (subject to updates of course):

"I Am Not Invisible Exhibit"Oregon | Commemoration/Acknowledgement
N/A or not disclosed
Female
Anti-Discrimination Law (Military Status and Spouses of Deploying Veterans)Oregon | Anti-Discrimination Law/Policy (Vet Status)
N/A or not disclosed
State National Guard/Reserve, Active Duty, Dependents
College Credit for Military TrainingOregon | Educational Credit/Diploma
N/A or not disclosed
All Veterans, State National Guard/Reserve, Active Duty
Direct Professional Licensing for Military ExperienceOregon | License/Certification
N/A or not disclosed
All Veterans, State National Guard/Reserve, Active Duty
Employment ProtectionOregon | (Re-)Employment Protection
N/A or not disclosed
State National Guard/Reserve
Federal Pension Income Tax Subtraction for Military RetireesOregon | Income Tax
N/A or not disclosed
Retired
Free Camping at State Parks for Disabled Veterans and Active DutyOregon | Park/Camping/Lodging Admissions
No fee
Disabled (Service-Connected), State National Guard/Reserve, Active Duty
Free Fishing and Hunting Licenses for Disabled War VeteransOregon | Fishing/Hunting License
No fee
Disabled (Service-Connected), Served in Combat
Free Parking at State Parks for Disabled Veterans and Active DutyOregon | Toll/Travel Fare/Parking Discount
No fee
Disabled (Service-Connected), State National Guard/Reserve, Active Duty
In-State Tuition for VeteransOregon | Tuition-Rate
Discount Equivalent to In-State/Resident Rate
All Veterans, Killed/Died (Service-Connected), Survivors
Income Tax Deduction for Active Duty Pay Earned Inside of StateOregon | Income Tax
Up to $6,000 deduction
State National Guard/Reserve, Active Duty
Income Tax Exemption for Active Duty Pay Earned Outside of StateOregon | Income Tax
No income tax
Active Duty
Military and Veteran License PlatesOregon | Vehicle License Plates
N/A or not disclosed
All Veterans, 100% Disabled, Purple Heart, Killed/Died (Service-Connected), Served in Combat
ODVA Home Loan ProgramOregon | Loan/Financing
N/A or not disclosed
Other than Dishonorable Discharge
Oregon DVA Conservatorship ProgramOregon | Guardianship/Custodianship
N/A or not disclosed
Indigent/Unable to Care for Self
Oregon DVA Conservatorship ProgramOregon | Legal Assistance
N/A or not disclosed
Indigent/Unable to Care for Self
Oregon Service-Disabled Veteran CertificationOregon | Preferred Status (Business)
N/A or not disclosed
Disabled (Service-Connected)
Oregon Veterans' Emergency AssistanceOregon | Emergency Relief
N/A or not disclosed
All Veterans, Low Income/Homeless vet/Hardship, Dependents
Oregon Veterans' HomesOregon | Residential Housing
N/A or not disclosed
Honorable Discharge, Dependents
Oregon Veterans' HomesOregon | Residential Housing
N/A or not disclosed
Honorable Discharge, Dependents
Oregon Wounded Warrior Parking PlacardOregon | Toll/Travel Fare/Parking Discount
No fee
Disabled (Service-Connected)
Property Tax Exemption for Disabled VeteransOregon | Property
No property tax
Disabled (Service-Connected), Other than Dishonorable Discharge, Survivors
Resident Rate Hunting and Fishing Licenses for Active DutyOregon | Fishing/Hunting License
Discount Equivalent to In-State/Resident Rate
Active Duty
State Council - Interstate Compact on Educational Opportunity for Military ChildrenOregon | Primary/Secondary School Assistance
N/A or not disclosed
State National Guard/Reserve, Active Duty, Dependents
State Tuition Assistance for Oregon National GuardOregon | Scholarship/Tuition-Assistance
100% covered
State National Guard/Reserve
Statewide Apprenticeships (BOLI)Oregon | Training/Apprenticeship
N/A or not disclosed
All Veterans
Veteran Volunteer ProgramOregon | Benefits Counseling/Determinations
N/A or not disclosed
All Veterans
Veteran's Day Off for All VeteransOregon | Commemoration/Acknowledgement
N/A or not disclosed
All Veterans
Veterans Designation on Driver's LicenseOregon | Driver's License/ID - Designation
N/A or not disclosed
Other than Dishonorable Discharge
Veterans PreferenceOregon | Preferred Status (Employment/Training)
N/A or not disclosed
Other than Dishonorable Discharge
Voyager Tuition Assistance ProgramOregon | Scholarship/Tuition-Assistance
To the "Last Dollar," or the difference between what federal aid programs cover and the actual cost of tuition
State National Guard/Reserve
Women Veterans CoordinatorOregon | Claims Assistance/Benefits Advocacy
N/A or not disclosed
Female
WorkSource Oregon Priority for Veterans and SpousesOregon | Preferred Status (Employment/Training)
N/A or not disclosed
All Veterans, Dependents
Troops to Teachers Grant Coordination OfficesOregon | Hiring Facilitation
N/A or not disclosed
Honorable Discharge, Active Duty

Free Audio Books for Eligible Vets from National Library Service

7/1/2019

The Braille and Talking Book Program
offers Veterans who have difficulty with regular print materials the return of the gift of reading.

The Joy and Freedom of Reading

Whether escaping into a great novel or staying current with popular magazines, the freedom and independence of reading are only a few steps away. This program, from the National Library Service (NLS) and the Library of Congress, provides talking books, audio magazines, and digital talking-book players free of charge.

Any honorably discharged Veteran who is

* blind
* has low vision, or
* a disability preventing the reading of traditional materials is eligible.

Participants choose whether their selected reading materials are delivered by mail, downloaded from the web-based service BARD (Braille and Audio Reading Download) or through the BARD mobile app for smartphones and tablets.

NLS maintains a vast catalog of titles and publications from the latest best-sellers to timeless classics. Plus, Veterans have preferential status in the lending of materials and equipment.

The Braille and Talking Books Program is accomplished through a nationwide network of libraries to serve citizens and Veterans living inside the U.S. or abroad.

Applying for this service is easy.

Call the National Library Service at 1-888-NLS-READ (1-888-657-7323) or
visit them on the web at www.loc.gov/ThatAllMayRead

Veterans served to protect freedom.
Now let National Library Service provide the freedom for all to read.

Before buying a used car, enter the VIN into the safety/recalls database

4/15/2019

Where's my VIN?Look on the lower left of your car's windshield for your 17-character Vehicle Identification Number. Your VIN is also located on your car's registration card, and it may be shown on your insurance card.

What this VIN search tool covers

Vehicle safety recalls that are incomplete
Vehicle safety recalls conducted over the past 15 calendar years
Vehicle safety recalls conducted by major light auto automakers, including motorcycle manufacturers.

What this VIN search tool does not cover

Completed safety recall information
Manufacturer customer service or other nonsafety recall campaign
International vehicles
Very recently announced safety recalls for which not all VINs have been identified
Safety recalls that are more than 15 years old (except where a manufacturer offers more coverage)
Safety recalls conducted by small vehicle manufacturers, including some ultra-luxury brands and specialty applications

Nice new neutral resource for people with student loans/loan troubles

3/25/2019

About Us
The Institute of Student Loan Advisors Corporation (TISLA) was founded to ensure that all student loan borrowers have access to free, neutral and clear student loan advice and dispute resolution assistance. We are a 501(c)(3) non-profit who believes that these borrowers have a right to a trusted resource with industry experience to mentor, educate and advocate for them. Student loan borrowers have a right to such a resource without being charged a fee, barraged with advertisements or forced to provide personal information that may later be sold.

Our goal is to help you help yourself. We are not here to manage your student loans for you, but to give you expert advice and help you to manage them successfully. We will offer fair, neutral advice that outlines what you are eligible for that is in line with current regulation and statute.

What We Can Do For You

Offer expert advice on your student loans
Help you decide which repayment plan make the most sense for you
Determine if you are eligible for loan forgiveness or discharge
Offer guidance in any dispute you may have regarding your student loans
Guide you through completing required forms and applications
Help you get out of a default or delinquency status

What We Cannot Do For you

Offer legal advice
Offer opinions on a particular company or servicer
Fill out or submit your forms for you
Pay your loans
Change the law or regulations
Manage your loan accounts for you

Testimonials
From James D. August 1, 2018

“I am very happy that I found freestudentloanadvice.org. I was very frustrated with trying to solve my student loan issues on my own and Betsy was such a great help with advice and follow up. Thank you so much!”

How We Are Funded

At the core of TISLA’s values is the promise of free, neutral and transparent student loan advice. For that reason, we do not accept advertising funds from any businesses nor fees from consumers. TISLA is funded through grants, donations and our fee for service products we offer to employers, schools and associations with constituencies concerned with student debt.

Such donations and partnerships will be listed on this page to ensure continued transparency. If you are interested in helping to fund TISLA, a 501(c)(3) non-profit organization, please contact betsy “at” freestudentloanadvice.org or donate through donorbox online.

TISLA 2018 Annual Report

Partnership Opportunities

TISLA offers several affordable and customizable packages to suit your constituencies needs for expert student loan repayment education and assistance. These offerings are suitable for employers looking to attract and retain valuable employees or schools who wish to provide student loan assistance to their alumni, students and employees. Our services can also be a way for associations to provide additional value to their members. Please contact betsy “at” freestudentloanadvice.org for more information on partnering with TISLA.

Our Leadership

TISLA is currently completing its board roster. If you, or someone you know, has a passion for the issue of student debt, can contribute their business, non-profit or other expertise and influence, and would like to consider serving, please contact betsy “at” freestudentloanadvice.org

Our Mission

To make certain that all student loan borrowers have access to free, neutral and accurate resources and mentoring to ensure they can successfully manage their student loan debt.

Our Values
Accuracy
Clarity
Integrity
Professionalism
Approachable
Respect
Neutrality
Transparency
To be of service to others

New bankruptcy exemptions apply after 1 April - better for debtors

3/20/2019

Bankruptcy Exemption Limits (what you can keep) Amounts Going Up

Bankruptcy Code § 104(b) provides that the exemption amounts and other dollar figures in the Code are automatically adjusted for inflation every three years. The adjustments are based on changes to the Consumer Price Index for All Urban Consumers published by the Department of Labor, rounded to the nearest $25.

New dollar amounts take effect on April 1, 2019, and will apply to all cases filed on or after that date. Consumer debtors who may benefit from the higher dollar amounts, particularly with respect to exemptions, the means test, and chapter 13 debt limitations, may wish to delay a bankruptcy filing until the new amounts take effect on April 1, 2019.

Despite popular belief, many lower-income bankruptcy filers can retain all or almost all of their assets in a chapter 7 bankruptcy. The new higher exemption limits means that it is even more likely that consumers can protect their assets in a chapter 7 filing.

New Exemption Amounts Protect More Consumer Property

Consumers in states that have not opted out of the federal exemptions may claim the bankruptcy exemptions under Bankruptcy Code § 522(d), as discussed in NCLC’s Consumer Bankruptcy Law and Practice § 10.2.1.1.

The federal bankruptcy exemptions may also be claimed if the “safe harbor” in Bankruptcy Code § 522(b)(3)(A) applies due to the consumer’s domicile for exemption purposes, even if the state in which the consumer’s domicile is located is otherwise an opt-out state, as discussed in id. § 10.2.1.2.

Exemption amounts refer not to the value of property, but to the consumer’s equity in the property after deducting outstanding credit secured by that property. The exemption amounts in Bankruptcy Code § 522(d) are doubled when a married couple files a joint case. 11 U.S.C. § 522(m).

For a state-by-state summary of state exemption amounts that apply to bankruptcies in certain states and that also protect property from seizure by judgment creditors, see NCLC’s Consumer Bankruptcy Law and Practice Appendix J. The same state-by-state survey is found in NCLC’s Collection Actions Appendix G.

As of April 1, the digital version of NCLC’s Consumer Bankruptcy Law and Practice will be updated throughout showing the new higher dollar amounts, both in the chapters and the Bankruptcy Code appendix (with footnotes showing the old dollar amounts). The following are the new exemption amounts:

Homestead - § 522(d)(1)                                      $25,150
Motor Vehicle - § 522(d)(2)                                   $ 4,000
Household Goods - § 522(d)(3) Per Item Limit        $ 625
Aggregate Limit Household goods                       $13,400
Jewelry - § 522(d)(4)                                             $ 1,700
Wild Card - § 522(d)(5) Any property                    $ 1,325
Wild Card Unused homestead § 522(d)(1)          $12,575
Tools of the Trade - § 522(d)(6)                            $ 2,525
Unmatured Life Insurance - § 522(d)(8)               $13,400
Personal Injury Claims - § 522(d)(11)(D)              $25,150

Exemption for Retirement Accounts

As discussed in NCLC’s Consumer Bankruptcy Law and Practice § 10.2.3.3, the federal bankruptcy exemption for retirement funds in pension plans and individual retirement accounts is available to all debtors, even those in “opt-out” states who would not otherwise be permitted to claim the federal exemptions. 11 U.S.C. § 522(d)(12) and § 522(b)(3)(C). The maximum dollar amount for this exemption also adjusts every three years. 11 U.S.C. § 522(n). The new maximum aggregate value of funds in retirement accounts that may be exempted will be $1,362,800.

Other Dollar Amount Adjustments in the Code

The inflation adjustment also applies to other dollar amounts in the Code, including:

• Priority for wages and employee benefits under Bankruptcy Code § 507(a)(4) will now be $13,650, and the priority for consumer deposits under Bankruptcy Code § 507(a)(7) will be $3,025. Distribution to priority creditors is discussed in NCLC’s Consumer Bankruptcy Law and Practice § 3.5.4 and § 18.5.5.

• Debt limits for eligibility for chapter 13 under Bankruptcy Code § 109(e) will also go up—to $419,275 in unsecured debt and to $1,257,850 in secured debt. The chapter 13 debt limitations are discussed at id. § 4.2.1.3.

• Threshold for the presumption of nondischargeability under Bankruptcy Code § 523(a)(2)(C) for purchases of luxury goods or services incurred within 90 days prior to filing will be $725 and for cash advances within 70 days prior to filing will be $1,000. A discussion of when these presumptions arise can be found at id. § 15.4.3.2.3.2.

• Dollar amounts under the means test for determining whether a presumption of abuse exists, based on the debtor’s income after expenses over a 60-month period, will now be: (i) $8,175 ($136.25 per month based on 60 period) or 25% of nonpriority unsecured debt, whichever is greater, or (ii) $13,650 ($227.50 per month). 11 U.S.C. § 707(b)(2)(A)(i). These dollar amounts are discussed at id. § 13.4.6.1.

• The cap on homestead property acquired within 1215 days before the bankruptcy filing under Bankruptcy Code § 522(p) or based on the commission of certain bad acts by the debtor under Bankruptcy Code § 522 (q) will be $170,350. These limitations on state homestead exemptions are discussed at id. § 10.2.3.4.

• The minimum aggregate amount of property that a trustee may seek to recover as preference in a case filed by a debtor whose debts are primarily consumer debts will now be $6,825. 11 U.S.C. § 547(c)(9). This limitation on a trustee’s ability to avoid transfers as a preference is discussed at id. § 10.4.2.6.4.2.

• The amount in an education IRA, a section 529 tuition savings program, and a qualified ABLE account that is excluded from property of the estate, if placed in such an account between 365 and 720 days before the petition was filed, will now be $6,825. 11 U.S.C. §§ 541(b)(5)(C), 541(b)(6)(C), 541(b)(10)(C). This exclusion from the bankruptcy estate is discussed at id. § 2.5.3.

LAWYERLY FINE PRINT:

John Gear Law Office LLC and Salem Consumer Law. John Gear Law Office is in Suite 208B of the Security Building in downtown Salem at 161 High St. SE, across from the Elsinore Theater, a half-block south of Marion County Courthouse, just south of State Street. There is abundant, free 3-hour on-street parking throughout downtown Salem, and three multi-story parking ramps that offer free customer parking in downtown Salem too.

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