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Things to know about medical debts and credit reports

On Behalf of | Mar 8, 2024 | Bankruptcy Law

Medical bills continue to be a source of monetary strain for many families and it might not always be possible to keep similar financial challenges at bay. Individuals in Maryland who struggle with medical debt concerns may not only face periods of financial strain, but they may also be uncertain of how such issues might affect their credit scores. Knowing how medical bills could impact one’s credit could help individuals determine if it might be time to seek advice on their available options for debt relief. 

Credit reports 

When it comes to past due medical bills, experts indicate that the way creditors will handle the situation may vary in each scenario. Some establishments may wait up to 180 days to turn accounts over to a collection agency, while others could initiate this process as early as 60 days. However, even if an account goes into collections, that does not mean that it will show up on one’s credit report immediately. 

Experts indicate that delinquent medical bills might not appear on one’s credit report until the period of delinquency reaches up to one year. Studies also suggest that medical debts that are under the $500 threshold might not even appear on one’s credit reports. While the one year grace period may help some find ways to address their situations, sometimes this may only be a temporary respite to a growing concern. 

Medical debts 

Medical debts can place a significant strain on a person’s financial situation and those who face such issues might not always know what steps to take to protect their interests. Fortunately, there are attorneys who can help a person in Maryland understand the available options for debt relief and the advantages and disadvantages of each path. This could help place a person in a better position to make informed choices about his or her financial future and prepare to seek much needed relief from the trials of debt.