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Medical debt burdens Tennessee residents, Chapter 7 could help

On Behalf of | Nov 20, 2013 | Chapter 7, Firm News

Crippling debt can cause a list of health issues due to the stress that accompanies it. As a result, medical attention could possibly be needed in order to treat heart conditions, high blood pressure or other negative health issues. However, many people in debt may not be able to afford such treatment due to finding themselves burdened further with medical debt. Luckily, options such as Chapter 7 bankruptcy could be helpful avenues to explore.

Medical debt is an issue that plagues many Tennessee residents and others across the country. At this time, the Bureau of Consumer Financial Protection is looking for ways to create regulations dealing with medical debt. Because medical debt is not always handled by a financial institution, however, and often by private sectors, the bureau has yet to have been able to form any beneficial rules concerning this type of debt and how it is handled.

The bureau is able to ensure that the debt is handled accordingly if it is handed off to a third party financial institution, such as a debt collection agency. Though they have some jurisdiction in such cases, they still prefer to be able to provide more protection for consumers with medical debt. Issues have been noted as consumers being contacted about debt that has already been paid and that the amount needed to be collected was incorrect.

Dealing with collection agencies due to having medical debt and feeling unprotected can cause a great deal of stress on an individual. In an attempt to reduce that stress and a negative financial situation, a concerned party may wish to look into Tennessee laws dealing with Chapter 7 bankruptcy to determine whether this option could be a viable path. State debt management laws could provide an individual facing considerable debt with knowledge on how to handle their situation to the best of their ability.

Source: Forbes, Have Medical Debt? More Help May Be On The Way, Evan Albright, Nov. 14, 2013