Consolidating medical bills

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Medical debt is one of the most common reasons people seek bankruptcy relief.Read on to learn more about how you can wipe out medical bills through bankruptcy.When you file for bankruptcy, your debts are separated into different categories.Certain debts receive special priority treatment and can’t be eliminated through bankruptcy. In bankruptcy, medical bills are considered general unsecured debts just like your credit cards.There is no limit to the amount of medical debt you can discharge in Chapter 7 bankruptcy.However, to qualify for a Chapter 7, your disposable income must be low enough to pass a means test.Four federal laws indirectly address the appearance of medical bills on credit reports.

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You must also learn to spot grant scams and apply for the correct grants.None is a direct hit, but each nibble at the edges of the core issue.The Health Insurance Portability and Accountability Act (HIPAA) contains privacy rules regarding protected health information.The United States does not have any existing laws directly making it illegal for medical bills to appear on credit reports. State level regulations address the appearance of paid medical collection accounts. If you owe more than ,000 in unsecured debt (credit cards, personal loans, and unpaid medical bills), a settlement program could reduce your obligations.Once the collection agency agrees to accept a lesser amount, the status on your credit report updates from “unpaid” to “paid settled,” which is much better for your score.Unfortunately, there’s a strong chance your finances will be affected by your stint in the hospital.

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