Credit Damage from Unpaid Medical Debt Prompts More to File for Atlanta Bankruptcy
For many Americans, the pain from medical debt lasts a lot longer than the pain from the illness or injury that caused it.
As a result, more Georgia residents are turning to Atlanta bankruptcy for much-needed relief.
It's already frustrating enough that healthcare costs are rising. But to make matters worse, hospitals overwhelmed by paperwork are increasingly sending bills to debt collection agencies.
As of 2010, it was estimated that 30 million Americans had been contacted by a company attempting to collect on a medical bill. However, many more may have unpaid medical debts and not even realize it.
A recent Associated Press story reports that more and more people are finding out about medical debt when they go to refinance their mortgage or take out a new loan.
In many cases, the debtors had been in the process of resolving a dispute with their insurance company - perhaps even over a billing error - without realizing the debt in question had been farmed out in the meantime.
By the time it becomes evident there's an unpaid bill on a person's credit report, the damage has already been done. Even if the bills have already been paid, the record of a collection agency can mar a credit report for years.
While many insurmountable medical bills stem from a lack of insurance, an increasing number of cases are caused by gaps in coverage. People may be properly insured, but co-pays and deductibles can still lead to bills that are difficult to pay.
Whether you can't afford your medical bills - or you can't afford the credit damage that has resulted from them - an Atlanta bankruptcy may be the most realistic solution.
Filing for bankruptcy in Atlanta has the ability to get all of your unsecured debts under control, from hospital bills to credit card debt. When overwhelming costs damage credit, bankruptcy can blaze the path consumers need to get back on track.
If you're considering bankruptcy to bounce back from medical debt, know you're not alone. It's estimated that 60 percent of bankruptcy filings are due to medical costs, according to CNN Health. In almost 80 percent of cases, filers have health insurance.
Having health care coverage isn't enough these days. For many people, bankruptcy can offer relief.
More Blog Entries:
Credit Card Debt in Atlanta Often Has the Same Root Causes: February 15, 2012
Medical Bills Can Cause Lingering Credit Pain, by Carla K. Johnson, AP Associated Press