Texas residents may wonder how unpaid medical bills might affect their
credit. Some experts advise that if medical bills are in dispute, it is
best to pay them off first and carry on with the dispute in order to avoid
a lower credit score.
Medical expenses represent a large proportion of all collections, but there
is increasing recognition that these types of debts do not necessarily
indicate that a person is a bad credit risk. Medical debt often occurs
due to a catastrophic event rather than a person failing to accurately
estimate their ability to repay a loan. Furthermore, many medical bills
are inaccurate. They might be due to an overcharge, or they might be for
things an insurance company should repay.
Over one-third of medical debts that collectors deal with are for amounts
under $100, and FICO is no longer taking such small amounts into consideration.
However, experts still advise individuals to take steps to protect themselves.
It is important to keep an eye on charges to make sure that they are accurate.
Communication with insurance companies and medical providers can also
sometimes help keep a charge from being sent to collections.
Medical debt is one of the most common reasons individuals
file for bankruptcy, and individuals who feel overwhelmed by their debt may wish to seek the
advcie of an attorney. With a consultation, an attorney may be able to
determine whether bankruptcy is a good option. Individuals may have heard
that bankruptcy means they will lose their home or never be able to rebuild
their credit, but this is often not the case.
Schedule a case evaluation with our Houston bankrutpcy attorney today!