Medical bills can be a significant burden, and when they appear on your credit report, they can impact your credit score. Fortunately, you can remove medical bills from your credit report in Indiana. By understanding the process and taking the right steps, you can improve your credit score and relieve some financial stress.
Check your credit report
First, get a copy of your credit report from the three major credit bureaus: Equifax, Experian, and TransUnion. You have one free report from each bureau every year. Review these reports carefully to identify any medical bills listed and verify the accuracy of the information.
Dispute inaccuracies
If you find any incorrect information regarding your medical bills, dispute these inaccuracies with the credit bureaus. You can do this online, by mail, or by phone. By providing any supporting documents that show why the information is wrong, the credit bureau will investigate the dispute, and if they find the information is incorrect, they will remove it from your credit report.
Negotiate a payment plan
If the debt belongs to you, try negotiating a payment plan with the medical provider or collection agency. Sometimes, they are willing to settle for a lower amount or set up a payment plan that works for you. Make sure to get any agreements in writing, and once you’ve paid off the debt, ask for a letter stating that the debt is completely paid for.
Request removal after payment
After you have paid the medical bill, whether through a lump sum or a payment plan, ask the creditor to remove the debt from your credit report. This is often called a “pay for delete” agreement. Any debt that is completely paid off or under $500 should not appear. Make sure to get confirmation in writing that the debt isn’t on your credit report.
Chapter 7 Bankruptcy
If this doesn’t work, filing for chapter 7 bankruptcy is another great way to remove medical bills from credit reports. Chapter 7 bankruptcy involves the sale of a debtor’s non-exempt assets by a trustee. The proceeds are then distributed to creditors. Most unsecured debts, such as medical bills, can be discharged, meaning you are no longer legally required to pay them.
Monitor your credit report
Finally, keep an eye on your credit report to ensure the medical bills no longer appear as agreed. Regularly checking your credit report can help you stay on top of any changes and ensure that your credit score improves over time. By following these steps, you can remove medical bills from your credit report in Indiana and work towards a better financial future.
