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Medical debt can ruin a Tennessee resident's credit rating

For some Tennessee residents, a medical problem can be a moment of adversity readily overcome. For others, the medical issue will can be catastrophic, introducing a time of suffering and medical debt. For those in such situations, having the pressure of sometimes-staggering debt can be overwhelming and can raise many different questions.

Does medical debt impact a person's credit? Usually, but not always. Why not always? - Because a person's credit rating is based predominantly on a person's payment information. If they do not pay their debt, normally a creditor will inform the credit-rating agency. But, many clinics and hospitals are not the typical creditor; they are not dialed in with these credit-rating agencies, and so they do not necessarily report a person's failure to pay as quickly as a credit card company or other lenders.

But, whereas clinics and hospitals can be slow to mar a patient's credit history, they are often fast to turn over the debt to a collection agency. And that is when a bad situation can turn worse. Best case, these agencies will consistently report any failure to pay. More likely, the agencies will use much more aggressive practices than the clinic or hospital, practices like lawsuits, demand letters and harassing phone calls.

Before bad turns into worse, Tennessee residents have options, including the chance to file for bankruptcy. Seeking the assistance of an attorney experienced in the bankruptcy process can help those going through such situations formulate a solid plan of action.

Source: nerdwallet.com, "Medical Bills on Your Credit Report," Lindsay Konsko, May 18, 2016

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
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