Panama City bankruptcy attorneys are discussing efforts to reduce the impact of medical debt on credit scores

Panama City, Florida. – Lewis and Jurnovoy, bankruptcy attorneys in Panama City, monitor debt forgiveness and bankruptcy news to keep their community informed. As a result, they highlight President Biden’s recent initiatives to minimize the impact of medical debt on credit ratings.

Medical debt is the leading cause of personal bankruptcy in the United States, ahead of credit card and auto loan debt. However, according to a briefing room fact sheet on whitehouse.gov, the most recent research shows that medical debt is not a good predictor of financial health. Medical debt lowers credit scores by up to 22 points by underestimating creditworthiness. “Consequently, the inclusion of medical debt on credit reports and in credit scores and lending may deter Americans from financial opportunity without improving the accuracy and predictive power of loan programs.”

The country’s three largest credit bureaus, TransUnion, Equifax and Experian, have all said certain types of medical bills will no longer be included in credit reports. Unfortunately, those whose medical debt exceeds $500 will not be affected by this change. Regardless, the Biden-Harris administration is working hard to minimize the impact of medical debt on credit scores so those in need can continue to access certain debt relief programs and qualify for future loans, among other things.

Lewis & Jurnovoy understands that individuals who have accumulated significant medical debt cannot afford to wait for medical debt guidelines to change and may need to file for bankruptcy sooner rather than later. Lewis and Jurnovoy debt consolidation lawyers work diligently to find the best possible financial solutions for every client that walks through their doors. The company specializes in providing debt consolidation and bankruptcy help and offers free consultations to its clients. For more details on debt relief or filing for bankruptcy in Panama City or the neighboring communities, call the Lewis and Jurnovoy office at (850) 913-9110 or visit them anytime online at www.LewisandJurnovoy.com.

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For more information on Lewis & Jurnovoy, PA – PCB contact the company at:

Lewis & Jurnovoy, PA – PCB
Steven Jurnovoy
(850) 913-9110
[email protected]
2714 West 15th St
Panama City, FL 32401

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