Debra Booher &Associates Co., Lpa Click here to get your free Legal evaluation
Call Us Today Toll Free
888-542-1300

How medical debt may lead to bankruptcy

Individuals in Ohio who have faced medical issues may also be struggling to pay their bills. Medical bills are among the most common ones received by collection agencies, and medical debt is a leading cause of bankruptcy.

Some consumer advocates argue that medical debt should not be included in credit scores, and in fact, in 2014 FICO introduced a new scoring model that will lessen the impact of this type of obligation in some respects. One problem is that some medical debts are incorrectly assigned. According to the founder of one collections agency, around 20 percent of the bills received are a result of a dispute with an insurance company that should have paid the bill or are due to an overcharge or charge for items that the patient never received. As a result, individuals should keep track of medical procedures and expenses. It may be months before medical bills first begin to arrive, and careful records will help with determining whether or not the bills are correct.

An item that goes to collections can in some cases cost an individual up to 100 points on their FICO score. The only exception is items that are under $100. These do not appear on credit reports. There may also be delays in paying bills when insurance companies are involved. Those in such a situation should try to keep the lines of communication open with providers and insurers.

People who are having trouble paying their medical expenses may in some cases consider bankruptcy as an alternative. An attorney who has experience with these matters can discuss the eligibility requirements associated with Chapter 7 as part of an exploration of available debt relief option.

Source: Bankrate.com, "How will unpaid medical bills hurt credit?", Janna Herron, Oct. 15, 2013

Source: U.S. News & World Report, "3 Myths and 3 Truths About FICO 9", Lacie Glover, Sept. 25, 2014

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Cuyahoga Falls Office
1350 Portage Trail
Cuyahoga Falls, OH 44223

Cuyahoga Falls Law Office Map

Beachwood Office
3401 Enterprise Pkwy.
Suite 340
Beachwood, Ohio 44122

Map & Directions

Independence Office
4700 Rockside Rd
Suite 415
Independence, Ohio 44131

Map & Directions

Westlake Office
1991 Crocker Rd
Suite 600
Westlake, Ohio 44145

Map & Directions

Canton Office
4450 Belden Village Street NW
Suite 204
Canton, Ohio 44718

Map & Directions

Ravenna Office
2633 St. Rt. 59
(Orchard Plaza)
1st floor
Ravenna, Ohio 44266

Map & Directions