How proposed policy changes could impact medical debt

 Posted on November 10, 2023 in Medical Debt and Bankruptcy

Medical debt casts a long shadow over many Americans' financial stability. To address this issue, the government has proposed possible regulatory changes to shield patients from the complications of unpaid medical bills.

Understanding these changes as well as your options, including bankruptcy, can help you manage your financial health.

Regulatory changes offer hope

Currently, unpaid medical debts can cause your credit score to decline. The proposed changes to regulations regarding medical debt and credit scores could eliminate unpaid medical bills from credit reports. These new rules address a critical issue affecting tens of millions of Americans. Such changes could improve access to secure housing, employment and bank loans.

Removing the negative influence of medical debt from credit reports can help lift the economic burden on individuals. These regulations could foster financial security and opportunities for many, providing a much-needed respite from the anxiety accompanying unpaid bills.

Bankruptcy can provide solutions

Although these changes have the potential to be widely beneficial, they are not yet in effect. Currently, medical debt can still damage your credit history and overall economic well-being. In many cases, bankruptcy offers a viable path to financial recovery. It can help you manage or discharge debts under the protection of federal law.

Seeking legal help sooner rather than later can make a significant difference. It is important to understand all available options and strategies for addressing your medical debt. With the right support, you can take steps now to safeguard your financial future.

Although future policy changes could provide new paths forward for people with medical debt, bankruptcy remains an important option in the present day.