Medical debt is one of the leading causes of financial stress in Florida. For many families, a single emergency room visit or unexpected surgery can lead to thousands of dollars in medical bills—often ending up on credit reports and dragging down credit scores. Fortunately, recent legal developments and powerful financial tools like bankruptcy can offer a real path forward.
Here’s what you need to know about medical debt, credit reporting rules, and how bankruptcy can give you a fresh financial start.
Federal Rule by the CFPB
The Consumer Financial Protection Bureau (CFPB) has issued a groundbreaking rule that bans most medical debt from appearing on credit reports and prohibits lenders from using that debt in lending decisions. This rule, originally set to take effect in March 2025, has been temporarily stayed until June 2025 due to ongoing legal challenges.
If enacted, this federal change will wipe approximately $49 billion in medical bills from the credit reports of over 15 million Americans—a massive relief for individuals trying to qualify for mortgages, auto loans, or credit cards.
Credit Bureau Reforms
In a major voluntary move, Equifax, Experian, and TransUnion—the three main credit reporting agencies—have already:
- Stopped reporting medical debt collections under $500.
- Removed all paid medical collections from credit reports.
These actions have already eliminated about 70% of medical collection debt from credit reports nationwide.
Understanding What Debt May Still Be Reported
While these changes are promising, not all medical-related debt is off the table:
- If you used a credit card or medical credit card to pay for healthcare services, that debt is classified as consumer debt, not medical debt. It can still appear on your credit report and impact your score.
- Unpaid large medical bills still in collections may be reported until the CFPB’s rule is fully in effect.
Florida’s Legal Protections for Medical Debt
Florida has taken additional steps to protect consumers from aggressive debt collection practices:
- Hospitals must complete specific requirements before reporting any medical debt to credit bureaus.
- The sale of medical debt to third-party collectors is restricted.
How Bankruptcy Can Eliminate Medical Debt and Rebuild Your Credit
If you’re still burdened by medical bills—whether they appear on your credit report or not—bankruptcy is a powerful legal tool that can help you eliminate this debt and get your finances back on track.
The Benefits of Bankruptcy for Medical Debt
- Medical debt is dischargeable in both Chapter 7 and Chapter 13 bankruptcy, meaning it can be completely wiped out.
- Once you file, all collection efforts must stop immediately—including phone calls, lawsuits, and wage garnishments.
- Bankruptcy can give you a fresh start, helping you rebuild your credit score over time by removing overwhelming debt.
Many Floridians believe bankruptcy is a last resort, but in reality, it can be the most responsible step toward financial recovery. It’s not about failure—it’s about regaining control of your future.
Frequently Asked Questions About Medical Debt, Credit Reports, and Bankruptcy
Will medical debt still show up on my credit report in Florida?
Some may, but new CFPB rules and credit bureau reforms have removed most medical collections. Consumer debt, such as medical credit cards, can still be reported.
Is bankruptcy a good option for medical debt?
Absolutely. Medical bills are considered unsecured debt and can be completely eliminated through bankruptcy.
How long does bankruptcy affect my credit?
While a bankruptcy filing stays on your credit report for 7-10 years, most clients begin seeing credit improvement within 12–18 months, especially without ongoing collections.
Can I stop collection calls and lawsuits by filing bankruptcy?
Yes. Filing bankruptcy puts an automatic stay in place, immediately halting all debt collection efforts.
Is there a minimum amount of debt required to file for bankruptcy?
No. The right to file for bankruptcy isn’t based on how much you owe—it’s based on whether it can help you achieve relief and stability.
Get the Relief You Deserve
New laws and credit reporting changes are providing hope to millions facing medical debt—but if you’re still overwhelmed, bankruptcy may be your best path forward. It can clear away medical bills, stop creditor harassment, and give you a real chance at rebuilding your financial future.
If you’re struggling with medical debt or worried about your credit, don’t wait. Contact Klein Law Group today for a confidential consultation with an experienced Florida bankruptcy attorney.
Call now or visit www.kleinattorneys.com to schedule your free bankruptcy consultation. A fresh start is just one phone call away.
