Panama City Bankruptcy Attorneys Discuss Efforts to Decrease Impact of Medical Debt on Credit Scores
May 27, 2022 at 16:56
Panama City, Fla. — Lewis and Jurnovoy, bankruptcy attorneys in Panama City, monitor debt relief and bankruptcy news to keep their community informed. As a result, they are highlighting recent initiatives taken by President Biden to minimize the influence of medical debt on credit scores.
Medical debt is the number one reason for personal bankruptcy in the United States, even more so than credit card and auto loan debts. According to a briefing room fact sheet on whitehouse.gov however, the most up-to-date research indicates that medical debt is not a good predictor of financial health. By as much as 22 points, medical debt lowers credit scores by underestimating creditworthiness. "As a result, the inclusion of medical debt on credit reports and in credit scores and loan underwriting can hold Americans back from financial opportunities while failing to improve the accuracy and predictiveness of lending programs.”
The three largest credit reporting agencies in the country, TransUnion, Equifax, and Experian, have all stated that certain types of medical bills will no longer be recorded on credit reports. Unfortunately, those whose medical debts exceed $500 are not affected by this change. Regardless, the Biden-Harris administration is working hard to minimize the impact of medical debt on credit scores so that those who are in need can still access certain debt forgiveness programs and qualify for future loans, among other things.
Lewis & Jurnovoy understands that individuals who have accumulated significant medical debts cannot afford to wait for medical debt policies to change and may need to file for bankruptcy sooner rather than later. The debt consolidation lawyers at Lewis and Jurnovoy work diligently to identify the best possible financial solutions for every client who walks through their doors. The firm specializes in providing debt consolidation and bankruptcy assistance and offers free consultations to its clients. For more details on debt relief or filing for bankruptcy in Panama City or the neighboring communities, call the office of Lewis and Jurnovoy at (850) 913-9110 or visit them online anytime at www.LewisandJurnovoy.com.
For more information about Lewis & Jurnovoy, PA - PCB, contact the company here:
Lewis & Jurnovoy, PA - PCB
2714 West 15th St
Panama City, FL 32401