How Medical Debt Can Affect Your Credit Score In Johnson County (And What You Can Do About It)

This article covers the following: 

• How long unpaid medical debts stay on your credit report. 
• Whether you can consolidate your medical debt to protect your credit score. 
• How to negotiate medical debt with a hospital. 

How Long Does Unpaid Medical Debt Stay On My Credit Report In Kansas?

Unpaid medical debt can remain on your credit report for up to seven years from the date of delinquency. However, credit reporting agencies now wait one year before adding medical debt to your report to allow time for resolution or insurance payments.

Can I Remove Medical Debt From My Credit Report?

Yes, medical debt can be removed from your credit report in certain circumstances. Once medical debt is paid, credit reporting agencies are required to remove it from your report. Disputing incorrect entries with the credit bureau can lead to removal if the debt is proven invalid. Alternatively, some creditors may agree to remove the debt as part of a payment settlement.

How Can I Negotiate Medical Debt With A Hospital?

Negotiating medical debt involves several steps. First, you’ll need to review bills and check for errors or charges that insurance should cover. The next step will involve working with the hospital directly. Request a discount from the hospital, as some facilities offer prompt-pay discounts or financial assistance programs. Some hospitals may even allow you to apply for charity care if you are unable to pay. 

You can also set up a payment plan that offers a manageable monthly payment schedule. Finally, engaging third parties, such as attorneys or debt negotiators, can often secure more favorable terms.

Attorney Rob Titus is a seasoned lawyer based in Kansas who has helped countless clients like you navigate the intricacies of real estate law. With over 10 years of experience, he is prepared to assist you with conveyancing, land searches, and other real property issues, including lifting liens and preparing transfer documents.

Still have questions? Ready to get started? Contact Titus Law Firm today to schedule an initial consultation.

How Do Credit Reporting Agencies Treat Paid Vs. Unpaid Medical Debt?

Credit reporting agencies treat paid and unpaid medical debt differently, and this is important to understand when assessing your credit score. 

An unpaid medical debt negatively impacts your credit score after the one-year grace period, while paid medical debt should be removed from your credit report entirely as of recent policy changes by major credit bureaus such as Equifax, Experian, and TransUnion.

Can I Consolidate Medical Debt To Protect My Credit Score?

One of the first steps you can take to help you manage medical debt is to consolidate the debt to make it easier to pay. 

Common methods for consolidating debt include:

• Using a personal loan to pay off multiple medical bills.
• Consolidating debt onto a credit card with a lower interest rate.
• Using debt management plans offered by credit counseling agencies to streamline payments.

Consolidation can protect your credit score if you avoid missed payments and manage the new debt responsibly.

How Can Hiring An Experienced Attorney Help Me With Medical Debt?

An attorney can serve as a valuable ally as you navigate medical debt. A lawyer can review your bills to identify errors or overcharges, then negotiate with creditors to help you secure lower payments, settlements, or payment plans. This can also involve challenging reporting errors to dispute incorrect credit entries and restore your credit score.

Your lawyer can protect you legally to prevent aggressive collection practices or defend against lawsuits. Finally, an attorney can provide bankruptcy guidance to help determine whether bankruptcy is a viable solution.

Have You Ever Had A Case Where A Client Was Unaware That Unpaid Medical Debt Had Been Reported To Credit Bureaus?

In one particular case, a client discovered that unpaid medical bills from years ago had significantly lowered their credit score when they were denied a mortgage. They came to us for help, and we reviewed the report and verified the accuracy of the reported debt. Our law firm also disputed errors, such as charges that had already been paid by insurance but were incorrectly reported.

Next, we negotiated with providers, settled remaining balances and filed updates with credit bureaus to ensure paid debts were removed promptly. Finally, Titus Law Firm provided financial education to help the client establish systems for monitoring future bills and credit reports.

As a result, the client’s credit score improved significantly, and they successfully qualified for their mortgage. It was a huge win for our client, and we were happy to be able to help them move forward and obtain a home. 

Still Have Questions? Ready To Get Started?

For more information on How Medical Debt Can Affect Your Credit Score In Johnson County, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (913) 543-4500 today.