The Huggins Law Firm, PA
Call to Schedule a Free Consultation
Columbia 803-764-1558 Charleston 843-509-0039

Medical debt and credit problems in South Carolina

Many people struggle with medical debt in South Carolina as well as across the country. These types of obligations are currently hurting the credit of around 30 million people in the United States, including those who have health insurance.

Unexpected medical expenses can ruin a credit report in a couple of ways. First, if they are of a significant amount, the high debt-to-income ratio that results can drag down a credit score, even if the person is making the minimum payments. Second, it is common for inaccurate reports to be made to credit reports regarding medical debt.

Experts advise people to carefully review their credit reports and highlight any errors. They should then dispute the wrong information with both the medical debt company as well as the credit bureau, sending the disputes via certified, return-receipt mail. If the error is not fixed, people can file a small claims lawsuit against both the reporting company and the credit bureau. In many cases, both will relent before the case ever reaches court and remove the information. Another possibility is disputing a medical bill, such as being overbilled for a provided service, with the state's insurance commission or another regulatory body.

When medical debt has gotten to a level where it is out of control, people may want to consider the alternative of bankruptcy. In some cases, it makes more sense to file for bankruptcy and to receive a discharge of this type of unsecured debt in order to receive a new financial start. Through bankruptcy, an automatic stay is issued by the court, preventing any further collection action until the bankruptcy case is completed. Upon the discharge, the creditors may no longer take any action to collect on the debt. Those who are overwhelmed by medical debt may want to seek help from a bankruptcy attorney.

No Comments

Leave a comment
Comment Information

The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
Columbia Bankruptcy Office

Columbia Office

Charleston Office
925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
Fax: 866-481-2325
Map & Directions

Charleston Office