Richard J. Shurtz, Attorney at Law
Menu/Navigate

Domestic Violence
Protection Orders

Telephone: 425-329-3601
Toll-Free: 888-705-3360

December 2015 Archives

Medical debt still an enormous problem for many Americans

Health care reform sought to increase medical coverage while simultaneously reducing costs, but there are some who question just how effective the new health care law has been. An out-of-state study examined medical debt and its ongoing role in bankruptcy filings. The results were perhaps anything but surprising for those who have experienced firsthand just how overwhelming medical bills can be.

Billing errors can add thousands of dollars to medical debt

The Consumer Financial Protection Bureau says more than 50 percent of consumers' unpaid debt reflected on credit reports is medical debt. Washington consumers with overdue medical debt may be interested in learning that the National Consumer Law Center estimates that seven million consumers nationwide have been contacted by debt collection agencies over medical debt that turned out to be billing errors. The impact of overdue debts on a consumer's credit score can be devastating.

Bankruptcy filing is best decided with professional support

A recurrent issue in Washington state and elsewhere is the potential impact that a bankruptcy may have on one's post-bankruptcy credit record and credit scores. A Chapter 7 bankruptcy provides extraordinary debt relief solutions, but it may have a negative impact on credit scores and the availability of credit for a limited time into the future. Nonetheless, the impact of a Chapter 7 discharge is so beneficial that it is said that the debtors have obtained a "fresh start" after completing the bankruptcy.