FICO and credit scores: Taking a close look at medical bills

On behalf of The Rollins Law Firm posted in Chapter 7 on Wednesday, August 13, 2014.

It’s quite likely that no Mississippi consumer would deem it fair if his or her credit score summarily plummeted owing to an unexpected avalanche of medical-related expenses.

After all, who can ever reasonably expect to be solvent one day and financially overwhelmed the next by medical bills that were entirely unforeseen?

Medical debt is more than just a bit unusual when considered alongside other forms of financial obligations, which can be planned for, with money set aside to make timely payments.

That is seldom the case with medical debt, which often surfaces suddenly and can quickly threaten a consumer and his or her family with financial ruin.

The national credit-scoring company FICO understands that unique aspect attaching to medical bills and states that it will begin accounting for it in consumers’ credit scores.

In other words: Persons with reports that indicate payment obligations solely for medical treatment will not be dinged as harshly on their scores going forward as has typically been the case until now.

That is obviously a nice change that recognizes how differentiated medical debt truly is from other forms of payment obligations, but much more needs to be done to help the many millions of Americans who struggle mightily with prohibitively high medical bills.

As has been widely noted over the past several years, that source of debt is a major catalyst for Chapter 7 bankruptcy filings. Indeed, the remedies provided for under federal and state law for debtors overwhelmed by medical bills and other forms of unsecured debt are a lifeline for many strapped consumers that enable them to regain financial solvency.

A proven Chapter 7 bankruptcy attorney can provide further information regarding debt-relief strategies.

Source: CNN Money, “Got medical debt? Your FICO score may go up,” Blake Ellis, Aug. 7, 2014

Client Reviews
★★★★★
I had a wonderful experience. The staff were nice and very informative. The process was quick and easy. Very affordable for me being a single parent. Would recommend anyone there. - Lashay H.
★★★★★
The Rollins firm assisted me at a very low point in my life. After having a lot of medical issues and expenses, I found myself unable to make ends meet. Mr. Rollings and his staff worked very promptly to help. They made the process so easy to complete. - Vinester Smith.
★★★★★
Fast response and professional advice. Really great to work with and understand what a difficult time in one’s life this is. Will recommend to anyone - Bryan Aust.
★★★★★
My wife and I were in an impossible financial situation where over time, we had built up so much debt that we could no longer keep up with all the payments. We were getting further and further behind until we reached out to the Rollins Law Firm for help. They have the knowledge and expertise through their experience to handle our particular situation. Their entire team of professionals are always available to answer questions, explain your options, and then provide the legal service that you need to relieve your financial worries and get you back on the right track! I recommend the Rollins Law Firm to anyone who needs help to deal with financial struggles. - Mike Zegelien.