Five Democratic Senators recently introduced the Medical Debt Relief Act that would remove medical debts from consumer credit reports that have been paid in full. The purpose of the bill is to prevent medical debt from damaging consumers’ credit scores after the debt has been settled.
The bill would require that medical debts allow for a 180-day waiting period before they are reported on consumers’ credit reports. This would allow time for insurance payments to be applied to outstanding medical bills. It would also require that credit reporting agencies remove previously reported medical collections that have been or are being paid by insurance companies from consumers’ credit reports.
If passed, the bill would ensure consumers are able to find affordable credit after paying off their medical debts. It would also permanently establish the new National Consumer Assistance Plan created in 2015 after a settlement agreement was reached between credit reporting agencies and state attorneys general.
The goal of the agreement is for credit reporting agencies to be able to collect complete and accurate consumer information and provide consumers more transparency and a better experience when interacting with credit bureaus regarding their credit reports.
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Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.