Medical Debt and Debt Settlement in Georgia
In Lilburn and throughout the state of Georgia, residents are struggling with medical debt. Georgia Senator Raphael Warnock has long recognized how distressing medical debt can be for Georgia residents. In early January 2025, his office issued a press release about the Consumer Financial Protection Bureau (CFPB) final rule “to remove medical debt from credit reports.” That rule meant that about $49 billion in medical debt would be removed from the credit reports of approximately 15 million Americans, making it so that consumers across the country would not be weighed down by medical debt when trying to obtain credit.
Currently, about 27 percent of Georgia residents in rural areas of the state have unpaid medical debt that has been turned over to collections. Thousands of debtors in suburban and urban parts of the state are also dealing with significant medical debt. The CFPB rule was intended to offer relief, yet as a recent report from Fierce Healthcare underscores, the Trump administration has placed the fate of the new rule in doubt. What do you need to know about your medical debt, and how can you address it? Our Georgia debt settlement lawyers can tell you more about the CFPB rule and options for debt settlement for your medical debt.
Freeze on Federal Rulemaking
The future of the CFPB is in question due to actions taken by the new presidential administration. And a 60-day freeze on pending rulemaking across all federal agencies also means that the CFPB rule on medical debt ultimately may not take effect.
If the rule does ultimately take effect, it means that medical debt will not impact your credit scores. Debt collectors will still be able to contact you, however, to seek the medical debt you owe. They will also be able to take other legal actions in order to recover debt. Common actions include lawsuits that result in judgments and garnishments. Accordingly, even if the CFPB rule does go into effect, you will likely still need to consider your options for managing or eliminating your medical debt.
Debt Settlement and Medical Bills
Debt settlement is an option commonly explored for credit card and personal loan debt, but it is also a good option for medical debt.
By working with a debt settlement lawyer, you may be able to work out an agreement for you to pay a percentage of the medical debt you owe up front in exchange for the remaining medical debt being forgiven. If you are in a situation where you could make a smaller up-front payment, you should find out more about how debt settlement could eliminate your medical debt and all of the stress associated with it.
Contact a Georgia Debt Settlement Lawyer
If you are struggling with medical debt, it is time to find out about options that may be available to you for debt management and debt relief. Debt settlement is a common practice when it comes to medical debt. With assistance from an experienced Lilburn debt settlement attorney at Konn Law Firm LLC, you may be able to get out of medical debt by negotiating with the creditor or creditors. By paying a percentage of the total medical debt you owe, you may be able to obtain forgiveness for the remaining medical debt. As such, through debt settlement, you could soon be free of your medical debt. Contact our debt settlement lawyers today for assistance.
Sources:
warnock.senate.gov/newsroom/press-releases/following-his-years-long-effort-senator-reverend-warnock-applauds-new-cfpb-rule-removing-medical-debt-from-credit-reports/
fiercehealthcare.com/regulatory/consumer-financial-protection-bureau-shakeup-leaves-medical-debt-reform-limbo
