Medical Bills Sent to Collection Agency Making Threats – Settle Debt or Pay What I can Afford?
A few years back, I had a hernia surgery. My parents paid for part of the procedure, and the hospital was able to cover the cost of the operating room with their indigent fund. However, a previous E.R. visit generated a bill for a little over $600.
I have been getting a lot of these calls regarding it, with a recording "Is this" (different voice) "John C.." (different voice) "If so, press one". I had gotten some previously, and stayed on the line long enough to explain that I had been working on creative projects and doing odd jobs, and I had no significant assets. Then, the debt got passed to a Franklin Collection Agency. The guy sounded friendly enough, but he says that if I just start paying what I'd prefer to, the debt will go to their legal department, and I'd have to pay an additional $200 in court costs.
Allowing the case to go forward isn't completely out of the question, since a wage garnishment would affect me only when things were going well enough to have a wage (they are also helping me get some dental work done); but I'd prefer to pay e.g. $50/month. They say that if I don't give them an account with automatic withdrawal, and agree to give them ~$164, or pay ~$219 with a non-automatic withdrawal account, that it will not prevent them from sending me a summons, and, the fellow said, "Frankly, I don't know why you haven't gotten one already."
I may be able to scrape one of these amounts together, but I'd really like some advice on if the guy with Franklin is telling it straight, and what are the pros and cons of either 1) paying it like they want, 2) just paying, say $50/month anyway, or 3) not paying it. It seemed like a last-minute ambush for money TODAY, but maybe or maybe not how they are proceeding is normal, and I should just cough up badly needed money. He says "the bank" is unwilling to accept a settlement.
Should I go to court, can I get a public defender, and are my odds good at getting a 60% settlement?
What do I do about medical debt and the collection agency saying summons is overdue?
—John C.
Short answer
Take a collector’s talk of a lawsuit being long overdue with a grain of salt. Medical debt tends to settle at higher percentages than credit card debt, so if you are already preparing to settle at around 60 percent, save the money as fast as you can and settle, rather than sending payments.
Key points on this page
- Debt collectors are trained to press your emotional and stress buttons to get paid, and a reference to being sued is an effective one. It does not mean a lawsuit is coming.
- Negotiating a lower payoff on medical debt is often done at higher rates than on credit cards, which means you save less.
- The lower the medical debt, the more the general rules about which accounts belong in a settlement plan apply.
- Small payments you send without an agreement in place do not necessarily prevent a summons.
- Around 60 percent looks like a realistic settlement on this kind of medical bill. Get the money together first, then negotiate.
When a debt collector tells you that your being sued is long overdue, take it with a grain of salt. It is not that they cannot or will not sue. I would need a whole lot more information in order to offer feedback about the risk of that happening to you. But collectors are trained to press your emotional and stress buttons in order to get paid. Making reference to being sued is rather effective.
Settling medical debt is often different than negotiation credit card bills that went unpaid.
You mentioned he said “the bank” and used quotes. The debt collector you spoke with probably also collects on bank debts, not just medical bills. I would not read too much into that other than, here is an example of a guy following his script and routine in order to get some form of payment – which accents my point about his reference to a summons being over due.
Negotiating a lower payoff and settling medical debt is often done at higher rates. In other words, you do not save as much. The lower the medical debt, the more the principles I laid out in this article apply: https://consumerrecoverynetwork.com/credit-card-debt-to-include-in-settlement-plan
If you are unable to make payments as high as the debt collector is requesting; if sending smaller payments (that are not agreed to in advance) does not prevent a summons; if you already are preparing yourself mentally and financially to settle at 60% – Save up the money as fast as you are able and settle the medical bill rather than make payments.
I think you can settle this for close to 60%. When you are ready with the money, come back and review the debt settlement section of our fee online debt relief system. Post questions on this page and get feedback.
Any questions or concerns you have after reading my feedback can be posted in the comments below. All readers concerned about dealing with medical debt in collections can post below and receive feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Since the state seems to matter, I’ll start with the fact that I live in Colorado. Back in Oct 2010 I had emergency gall bladder surgery and ended up with an out of network surgeon, who was in an in network hospital. For some reason his billing company didn’t submit till sometime in early Feb and by that time the max payout had been hit. So the insurance co refused to pay anything and the doctors billing co refused to offer any kind of discount at all because I was insured. Tried everything up till they took me to court in April of 2011. Everyone I talked to was shocked that they took forever to bill and then took me to court so fast. Anyway, the morning of the court date, I offered them 50% of the bill in cash and they refused. They said if I had offered it sooner then they would have considered it. Mind you, I did offer them that previously and they said no. So we proceeded, the judge was kind and on my side but said that the law was the law and they got a judgement for just under 4K.
So I checked my credit report last week and the collection is there with the dr office as the original creditor and the collections agency as the current reporting agent, but there are no public records. I don’t see the lien, just the collection. I tried looking the lien up on the county clerks site and nothing comes up, ever. I know it was there are some point but I have no idea what happened to it. Is a collection account the same as a lien now?
Not sure what to do about any of that but I was wondering if I should try to negotiate again. If there is a lien on the house, they are going to be waiting a long time as I don’t plan on ever moving or selling. The debt has grown with interest and went from just shy of 4K to about 5.5K so it seems like I should do something about it. I haven’t contacted anyone because I don’t want to start clocks moving again. Do you have any suggestions?
I received a justice court summons for a medical bill in the amount of $689.69. It states unless I want to contest it I do not have to appear in court, which I don’t what are some of the options I have to pay this debt if any.
The CA is illegally adding interest because you are not contractually obligated to pay one red cent more than what the insurance carrier states. It is NOT a HIPAA violation to report medical debt so while you could dispute it after you pay it is likely to end up a paid collection.
It is ALWAYS better to pay the provider than their CA. The provider is also wrong that it is your responsibility to deal with the CA. Pay the provider and then write a terse letter to the CA stating that you refuse to pay their illegally added interest. The debt is no longer valid because you paid the provider and if they do not cease collections and delete the trade line you will pursue a FCDPA claim. Watch how quickly they move to delete. If they do not delete it then dispute with the credit bureaus as paid to original creditor.
Hello, I have a question.. My husband has 2 outstanding medical bill with a balance of a little under 5k and with interest the balance is 7,500. The collection agency isn’t willing to do a payment plan but will only knock off $600 if paid within 2 weeks, no more settlements after that. I called the hospital and was told that I can pay the hospital the $4500.00 balance in full but it would be my responsibility to deal with the ca. I have hard that if the hospital is willing to deal with you, you can pay them their debt and dispute the rest with the credit bureau. Is that true? What are my other options? We are trying to purchase a home and the lender requires that either the debt is paid or we go on a payment plan. $2500 is a lot of interest so we would like to avoid it. Also the ca will absolutely not do a PFD!
I received a summons on a $1500 medical debt. Immediately I went to that same hospital where my services were received and paid the bill in full, this was on June 17th. Nearly 2 months later I am sent an order of wage garnishment, claiming I owe approximately $1700. The judgement date is July 17th, the creditor is listed as the “hospital”, and estimated court costs is $36. Anyhow, I take my receipts and cashiers check and march into the hospital. The lady in “Finance” tells me I am “clean and clear” with them. I am told to call the attorneys office listed on the garnishment order. I call the attorney for a lengthy, emotional conversation in which he tells me that the debt is through the hospital and what I owe him is so minute, he’d be willing to drop it. I march right back into the hospital (I had called the attorney from the parking garage) where I am assured that I have cleared my debt with them. My next phone conversation with the lawyer is not the same as the first. He tells me about the fees of the collection agency, court costs, automatic withdrawals, money, money, money, and I understand NONE of it. I don’t know what to do. Considering I paid the bill prior to the judgement date, I wonder how “court costs” could even apply. Also, if I owe the hospital nothing at this point, why are they listed as the creditor? If its the collection agency and the lawyer that I owe, shouldn’t they be listed as the creditor? I work full-time as a teachers assistant, I make (after all deductions) about $750 a month. I understand that this poverty level income pretty much assures that they will not succeed at garnishing my wages, but that’s beside the point. I will pay off this debt if it proves to be legitimate, I just feel like I’m being ripped. Any thoughts?
If it were me, I would start with taking necessary steps to contest the garnishment formally with the court. The notice of garnishment you were given may contain the instructions for doing that. If not, call the court clerk tomorrow and ask how to begin that process.
Next I would contact a consumer law attorney familiar with debt collection defense. Most offer an initial consult at no cost. I would explain what you did and why, and that you did not know you needed to do anything else than pay. You want to know what options there are for vacating or setting aside the judgment so that your credit report is not hammered by this. It may be worth paying the consumer law attorney to manage things from here if you have credit and financing goals in the next 24 to 36 months.
What is the name of the wonderful attorney that is doing the 180 from kindness and understanding to asshole-ish-ness?
Is there anyway you could inbox me or vice versa so I could tell you privately? I would just hate for my public reply to have repercussion and with my luck it is very possible. At the same time, I appreciate any and all advice you have to give considering how uneducated I am on the subject. My e-mail address was requested before typing my comment, if you have access to it.
Sure, just email the address you get these comment notifications from with the attorneys name, and also the name of a larger city close to you so I can email back some resources for you to check out.
By the way, I plan to continue my college education next semester (completed my online application yesterday) and want to buy a home sometime soon. A good credit score is detrimental and I’ve really been working at paying all my debts for that exact reason.
Given your goals, I would first look for an opportunity to undo what happened in court.
Hi, After a recent 2 night stay in the hospital, I received a bill for $3,000. My husband completed all the necessary paperwork naming himself as the responsible party for the charges. When the bill arrived it was in my name. I was informed after calling the hospital that if the patient is over 18 , they are responsible. Is this true? Also I offered a payment $30 less than required,they refused so I would like to know how they can ruin your credit when you are willing to pay. It seems that all calls go to a call center so how do I go about talking to someone who could resolve this. DEBORAH
You are the adult contracting for treatment and services. The bills should come in your name. Your husband can still take responsibility for the bill.
Is the extra 30 dollars for the payment completely out of your reach to pay?
Medical debts in collection can end up on your credit reports. They are fast becoming less damaging to your credit than a variety of other late pays and collections, but will still carry a little punch. Is this already showing in your credit reports? By what agency?
The hospital is Baptist Health in central Alabama and as far as i know they are not a nonprofit. No my wife did not have any health insurance.
Also, we are both on he mortgage for our home. We do not have any equity in the home, but can this situation cause s any problems with our home?
They can sue and get a judgment for the debt. That can result in a lien against real property, and other extra ordinary collection methods as they may apply in your state.
Are there other debts you are struggling with besides this one? How much in credit card balances are you carrying between you both?
Many hospitals will write down, or write off, a certain amount of services they deliver. Call the hospital and find out what your options may be in this regard. Be up front about your finances. Request any documentation they can send to you, or that they publish on a web site.
Post what you learn and lets go from there.
I wrote this original question some time ago. I had come across debt collection websites that gave one tips for dealing with these people. The first thing many of them said, is to verify the debt. I called the people with whom the debt originally originated from. They claimed that my debt was not covered; although the financial aid office at my local hospital said it was. A helpful lady with the debtor then said that it was because none of the numbers she was given applied to the day that concerned the debt. She asked me to send a letter from the hospital with the coverage numbers, and fax it to her. (I had previously faxed such a letter to the collection agency, a large Louisiana collection agency, but it had no coverage numbers.) I then spoke on the phone with the lady from the hospital, to see what numbers applied to which days. I wrote dates next to the coverage numbers, and drew little lines from the numbers to the dates. I then faxed this off. I never heard from them again, and have had no further problems. I assume they were incorrectly understanding what date the coverage numbers covered. Thanks for offering your advice, even so.
Hello,
While my wife and i were out of state in April 2013 she had a medical emergency and was taken to the hospital. She stayed the night in ICU and the bill was 8700.00. We are in no position to pay that kind of money and the hospital would not work with us on setting up a payment plan. They said the best they could do is 800 a month which is not something we can afford. Today my wife got an automated letter from an attorneys office that says they may proceed with suit against her. Can they garnish her wages or put a lein on her bank account ? Since we are married can they do anything to me ? What further legal action can they take ? And lastly, do you have any reccomendations ?
Travis – Did you have any medical insurance at the time? Was this a nonprofit hospital?
Hello, I have a dr bill from 2006 that is in collections for 258$ I can’t afford it. Any suggestions?
Did you receive the treatment or service back then, and later make a payment on the bill? What state are you in? Is there a collections account showing on your credit report related to this debt?
I have a medical bill that I was paying on that was turned over to a collection service. I don’t know that they agreed to $50 a month but that is what I have paid them. I owe $1150 and I have paid $650 this year through my bill pay. I called in October to find out my balance and they told me I owed $600, they thanked me for paying my bill every month and I updated all my information. I have never disputed the debt and the fact that I need to pay it. November came and I forgot to pay but I payed them on 12/2/2013 for November and then again on 12/6/2013. When I started receiving crazy mail from lawyers I called them and they said I had not paid since October so they sued. I have documentation that I paid through my bank. Today I received my summons what do I do?
Beth – What is the name of the collection outfit you were paying, and is that the same name of who is suing you?
I am a 20 year old single mother , I make barely enough to get from paycheck to paycheck. I have about 1600 medical bills in collection I am currently being sued for $800 of that . I offered to pay payments with the collectors but they declined and said they were referring this to a lawyer of there office. I just got te summons not but a week ago , how do I go about setting up payments ? Or what is the court process like for these things ? What will happen? I cannot afford a lot a month and I am freaking out I do not have any idea of what to do .. Please help me !
Jasmine – In order to resolve the medical debt you are now being sued to collect, you would look to either settle for a lump sum, or set up monthly payments. If you cannot afford a lump sum, and the payments you offered already were too low, you may be able to get an affordable payment set up through the court process. This is not a great position to be in, as you would most likely end up with a consent to judgment, or one entered in the court by default if you do not participate. But their are limits to what a debt collector can force you to pay if they get a court judgment. These limits are state specific. If you cannot get the collector to agree to something by working with you directly, the court can actually be helpful.
What state are you in?
My husband recently got a letter stating that he was being sued by an attorney’s office for an outstanding doctor bill from a year ago. The total is $1300.00. He called them to get more detail and they stated that he’d need to begin making a payment of $300/mo within 15 days and asked to see a copy of his current bills- which he provided. They came back saying that the $300 is fair. He has tried to negotiate with them offering them a settlement of $700.00 up front that he’d borrow and pay back to a family member as the $300 monthly payment is just not viable for our family right now. (I am not sure what bills he provided to them and if it included things such as daycare, etc). He called again and asked them to extend that amount out to after the first of the year as he doesnt have that cash right now and it would buy us more time to figure out how to better fight this. They gave him an additional 5 days. What can we do? Will a lawyer settle with you? If we took the chance and appeared in court and fought this, is it worth our time? Would we then be responsible for court fees? Help! (We live in Wisconsin)
How can we negotiate the charges down to settle for a lesser amount? If we go to court, are there more fees that we could be responsible for? Is it legal for a lawyer to ask to see your “bills” to determine a payment amount?
Megan – Negotiating a lower pay off on medical bills, even when sued and with an attorney, is possible (but not always). In order to have a shot at settling at this late stage of collection (being sued), you will often need to have a lump sum ready to pay, and in an amount that they will accept. If you can tap the resources, you may succeed by offering a few hundred more. If that is not an option, it leaves the discussion to affordable payments. If 300.00 is not something you can manage, and they are not going to bend, you may be able to establish a payment you can afford by participating in the court process.
You could file an answer to the complaint denying the claims made in order to extend this out so that you can save up, or access more money to settle in a lump sum.
It is somewhat typical for an attorney to ask for docs to substantiate a hardship or inability to pay, or pay much. Whether or not you should ever offer up that kind of detail is a different story. If the details do not support your inability to pay, than giving details is rarely in your best interest.
There may be additional costs due to the court action, and how you choose to proceed.
Are there other debts besides this one that remain unpaid?
Thank you so much for your advice. We do have other unpaid medical debt that we are working on establishing payment plans on. We also have other debt in general. I think we are going to go forward and try to settle for more to try to avoid any court action. If they wont accept that, we will have to start making payments. Thank you, again!
I have a total of $1256 Medical bills from my 1st 2 years of college that have gone into collection. The collection agency use to call my but i always hung the phone up. Flash now 3 years later and i can not get approved for a credit card because of the negative score of the collection i have about $700 save in order to pay the bills but the collection agency hasn’t contacted me in a while, so i do not know what the best way to deal with this situation is? I would like to know is it better to settle on an amount and pay it and whats the best and fastest way to pay the overdue accounts and get the negative collections remove from my credit score
Igor – It is unlikely you would be able to pay and get the medical collection debt removed from your credit report. You can get them either paid, or settled, so that they show a zero balance owed on your credit. That can help you accomplish you goal of obtaining new credit over a fairly short period of time.
How many different collection items are appearing your credit report?
What are the names of the companies collecting on the medical bills? Are those companies different than who is reporting on your credit?
I have 7 in collections 4 of which are with the same company. The companies are NCO (4), Merchants and Med credit, UCB and UN COLL TOL on the report and is it better to pay in full or settle whats better for credit score?
Igor – When accounts go unpaid for an extended period, and to the point debt collectors are showing on your credit report, you will generally not see much difference (if any) between settling these medical debts for less than what is owed, or paying them off in full. The key is getting these collections to show there is no longer a balance owed, and settling accomplishes that too. But be sure to get everything you negotiate in writing, or pay off letters, when you resolve the bills.
I would start with calling NCO and let them know that you are not in great shape financially, but are trying to come up with a plan to get back on your feet. You are wondering what these debts can be settled for, and if it is affordable, you will try to pool together the money. Here is a post with some additional details about dealing with debt a collector.
How old are these debts?
The debts are about 3-4 year old.
I have an unpaid hospital bill for $353.42. The bill was when I went a year ago. The bill finally went into collection and do not know how to handle it. The collection agency has sent me a letter stating that the claim has been placed with their firm, and that I may contact the office during their hours. The state in the letter that they want the amount paid in full. I want to pay in one lump some but I can’t afford that much. I would like to send them a letter negotiating a different amount, but I don’t know what to offer. I have recently became unemployed and have very little money. HELP!!!
Kelsey – By firm do you mean attorney, or a collection company? What amount can you afford to offer in a single payment settle the bill? What amount could you confidently agree to as a monthly payment?
Hospitals will often fully write off a certain amount of services each year. Many will limit this to patients based on income (lack of). Being unemployed now may qualify you, where you couldn’t before. Did you look into this? If not, call the hospital billing department and ask about any options.
By firm, I mean collection company. The amount I can offer in a single payment to settle the bill is $130.
On that note, I have called the hospital asking for help with this bill. When I spoke to someone, they told me that there was nothing they could do and that “it was out of their hands.” The hospital told me that it was too late to try to qualify for any help.
It would be good to know if they sold the debt at this point, or simply placed it for collection. Debt collectors who are working for the original service provider may be less flexible, where companies that buy up unpaid medical bills can be more flexible in what they accept as a pay off (but not always). In any event, 130.00 is probably too small a settlement offer. Can you add to that over the course of a month or two?
Sending in a letter is not the best way to approach your negotiations. Phone calls are the most productive. You can call them and let them know you are in an extreme hardship, and have no income, and ask what options are on the table. Then just listen. Collectors are trained to try and get a payment, or a commitment to pay, on every phone call, so be prepared for that. Let them know you are calling for information and options at this point. You may learn that there are affordable options, or they may just stick to a pay up mentality. Either way, communicating the hardship you are in can help set the stage for a settlement and payment options in follow calls.
I am being sued for medical bill. I filed my answer stating that I was not presented in the summons and complaint with full account information and I’m not sure what this debt was for (had many hospital visits/procedures) I received letter from lawyer providing all account information along with Motion for Summary Disposition that will be filed if I don’t sign to the Consent Judgment ($50 per month on original debt plus interest, fees and etc.) The reason for this debt not being paid was that my spouse’s ex-employer was to cover these, they offered a perk of paying any deductible cost over $500 as individual /$1000 family (I have enrollment form stating such), but they didn’t pay these and when inquired about it, they said they no longer offered the perk and it was a mistake on the enrollment form(this was after spouse no longer worked for them). I received a court hearing date and I wanted to plea my case, but this motion order has me confused. Do I have to respond? Can I just go to court on Tuesday and explain with the judge? I understand I owe but perhaps lower the amount due or better payment arrangement (no extra fees, interest tackled) then what the lawyer is requesting. HELP!
Anna – How much is the medical bill? Have you talked with an attorney about your situation? Who came up with that 50.00 monthly amount in the consent? Was this amount based on discussions you had with the attorney suing?
You should absolutely appear for the hearing. You have real arguments, but are up against the wall on time. Depending on the amounts involved, the economy of how much time and money you dedicate to fighting this will change.
The bill is for $1200, well with the attorney fee’s, interest, filing fees tackle on, the consent judgment is now up to $1400. I have not talked to an attorney cause it would cost me more than the amount of the debt. I filed my answer, got the court date and was hoping to plea my case in front of the judge, but this recent papers from lawyer have me concerned. The consent judgment was written up by the law firm, I have not had a direct discussion with the lawyer. He left a message for me to call back, but we’ve been playing phone tag and I have to decide if tomorrow I sign the consent and move on, or figure out how to stop the motion (new to this court process)
I just realize I didn’t answer your first questions. The amount you are asking that he owed and we paid are correct.
Thanks –
Doris – Start with the advocacy outlet tomorrow. I normally do not suggest going into too much detail with collectors, but this is a different situation with little time. Your son will need to give them authorization to speak with you. He can do that over the phone quicker than sending in a written form which creates delays. Explain the issue and this preventing him from entering his first semester of law school etc. Post an update with what happens after that.
Right away I would have your son right down what took place and was said during each prior call. Also what dates and approximate times those calls took place.
Thank you so much for your timely response.
1) The debts are legit, my son said he had received a letter from Merchants Association in the past. When he pulled up his credit report he saw medical bills and went to the letter. When he contacted them he was told that it was now with Allied Interstate.
2) The original Debt was incurred with Tallahassee Memorial Hospital
3) When my son asked to make a settlement payment they said they weren’t able to do that since it was with TMH. (I was under the understanding that once a collection agency bought a account it was no longer paying off the original creditor)
4) I have not called them yet, I plan to do that tomorrow.
I also checked Allied Interstates website and they have a advocacy hotline. I don’t know if I should call them first. I haven’t got a problem with us paying off this debt, we paid off the first and plan on paying off the second in just a few months. They are now refusing to give us a paid in full for the first bill unless we pay off the entire amounts.
Not sure where to go from here,
Thank you,
Doris
Hi Michael,
My son has graduated from FSU and has been accepted into Stetson Law. When he applied for a student loan he was denied and told that he had outstanding debts on his credit history that he needed to resolve. These were medical bills that weren’t covered by his insurance. The first collection agency he contacted (MAF Services) told him the total due and he paid it. They sent him a paid in full letter immediately. The second collection agency (Allied Interstate) he contacted to pay off a debt, informed him he had a second debt also. The total went from owing $800 to $1800. He arranged to pay a payment plan, which they sent him a letter stating and he gave them his banking info to have monthly payments taking out each month. He contacted the college and they told him he had to pay that down before he could get his loan. My son called the creditor back and told them he would pay off one loan and make installments on the second. He told them he would need a pay off letter for the first and a letter stating he was making installments on the second. Benjamin paid $1100 on his Visa Debit card. He has been calling every day to get the letter and they kept telling him another dept. handles that. Today he finally got through and was informed that he could not get the paid in full letter untill the other bill was paid and then it would be 14 days from then. This is not the agreement we had. Unfortunately it was a “verbal” agreement. My son is supposed to start law school August 18th and we are still trying to finalize the loan. I don’t have the money to pay the other bill in full. I have just paid out $1100 and we have nothing to show for it. I have no documentation even stating that the money wen to pay on a bill. Can they refuse to give me a “statement” showing that the money was applied to a bill and has a -0- balance now. I need to get on the phone and try to resolve this for him. They are giving him the run around. CanI leverage the fact that payment was made with a Visa Debit card and I have the right to dispute payment if I don’t receive the documentation that we were promised. Please help me with this, we are running out of time for my son to be able to get his loan. Thank you so much,
Doris
Doris – Yes, you could potentially dispute the debit card charge, but that may complicate things further. Just to clarify:
One known medical debt at the time of first call was for 800.00.
A second debt materialized with Allied from the same hospital stay/health service situation, and the balance was 1000.00?
A total of 1100.00 was paid so far.
There remains an amount of 700.00 unpaid out of the total 1800.00 owed?
Are the debts recognizable to your son (tied in with the specific medical treatments or office visits)?
When were the debts created?
Can you verify who allied is collecting for?
You have called Allied on behalf of your son, or you have not?
It is not that they can refuse to provide an accounting of the payments or a letter outlining what has transpired. Given the situation, this was handled a little backwards. The letter outlining the terms comes before payment. That would allow your son to show the letter and the bank statement showing the progress that has been made, and the letter would have shown the additional payment dates etc.
Please answer the above questions in a comment reply and lets go from there. I will have some additional feedback and advice to pursue.
Hello Michael,
I landed in the ER a while back while I was only working 25 hours a week making nearly minimum wage. My wife had just lost her job and there was no way we could pay the bill let alone the ambulance bill. I received something from the court, went and paid a fee to include my response and I recently received a Stipulation and Judgment (sent by the collection agency) from the Justice Court of my town and it has a case # included. When I enter the case and/or my name, it states that no records are found. Is just a threat or what?
If I could negotiate a lesser amount I could possibly try to borrow from family. They tacked on court costs and lawyer fees and now I owe about $1,700 and they want $40 payments every month. I have to sign the document and return it or the offer will no longer stand. I can’t afford $40 plus what I am paying for the ambulance. I have three kids and can barely make rent! 🙁 Any advice you may offer would be appreciated.
Thank You!
Mark
First make a call to the court and verify with the clerk that the case is indeed filed and active. Your reference to not being able to look it up is a bit odd, unless you are in a “hip pocket” state like Minnesota. What state are you in?
It becomes difficult to settle medical debt when it is already in the court. Instead of being able to deal directly with the service provider, or even their billing service provider, you are now dealing with a collection agency, and an attorney at that. They fairly void of compassion when collecting debt.
Settling this, if it is indeed in the courts, may mean targeting 7o to 80 percent of the balance. If you do have family willing to help, it is a reasonable direction to take. Short of that, you have limited income and ability to pay. Even with the judgment, you may be exempt from garnishment in your state. Your bank account could be levied with a judgment in place, so that is a huge concern.
Call the court and verify, then post an update here. Also include the attorney collection agency you are dealing with on the medical bills.
What is the amount you are paying toward the ambulance bill? How did you arrive at that agreed payment with them (was it fairly painless)?
Michael,
I am in dire straights. The ONLY overdue debts I have are medical, and University of Colorado has just filed a lawsuit to obtain ~$3877 from me. The thing that baffles me is that the primary amount I’m being sued for is for an automobile accident for which I was not at fault, and the other driver was uninsured. Moreover, I have chronic spine injuries and require bi-weekly antibody infusions due to my own cells failing to produce their own. Because of those expenses, I had met all deductibles and out-of-pocket maximums in January of that year. The accident was in June. The person delivering the notice had a badge, but I was rather flustered and failed to request the number and take a closer look at it. The officer also did not have me sign for the document. There is no way in the world I can pay these bills. A serious bicycle accident in 2011 left me with 9 spine fractures to my upper back and neck, requiring 4 surgeries to fuse 10 levels. I was denied disability sight unseen, which has forced me to work, even when in extreme pain or illness. Please. I desperately need someone’s help, but have nothing I can pay. All money earned goes toward my living expenses and my service dog in training. I don’t know what to do. The bill SHOULD have been paid for by the insurance I had at the time, with its out of pocket max and deductibles maxed out, making everything covered 100%.
I hope you have some ideas for me. Thanks.
Is the University of Colorado the named plaintiff in the lawsuit?
Have fully hammered things out with the insurance company?
Have you spoken with an experienced disability insurance attorney?