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Debt relief may be coming for those paying down medical bills

As many Chattanooga residents unfortunately know, paying off medical bills is often a timely and extremely costly matter. Often times, those who need debt relief from medical bills have to suffer through having their credit damaged while they try to pay it all off. However, relief may now be on the way.

A new bill, the Accuracy in Reporting Medical Debt Act, has just been introduced in Congress that could try and help those that have issues paying off their medical bills or may have had medical bills that improperly damaged their credit. The bill would be a revision to the Fair Debt Collection Practices Act that would allow for consumers to try and work out issues with medical debt collectors before it is reported to the three major credit bureaus for up to 120 days. The bill requires the consumers to contest the debt within 30 days but if they do, they then have the full 120 to pay it off or deal with anything that needed to be corrected before it could be reported.

For many people, the extra time to deal with the medical debt will be a great help. However for others, who have recently lost their income, have other financial challenges or are struggling financially for other reasons, they may need additional debt relief. One of the best ways to get that relief is a consumer bankruptcy. Filing for bankruptcy often allows a consumer to completely eliminate debt that otherwise could take many years to pay off, if ever. Also, after only two years, most debtors are able to purchase a car and even a house after filing for bankruptcy since their credit will have improved enough to do so.

Seeking help with debt woes is often difficult to do. However, once help is received, the consumer can finally get a fresh start.

Source: [Consumerist, "Legislation Would Give Consumers 120 Days To Resolve Medical Debts Before Dinging Credit Reports," Chris Morran, May 28, 2013

Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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