All My money on hold

[skyblu216]

What is the name of your state?
New York
In 1999 I was in the hospital for 2 days ans was covered by insurance. The bill was never paid and the hospital retained an collection attorney who has put all my money on "hold" I can't get a dollar out or pay one bill. I have good credit and now feel my credit standing is at risk. How long can they hold these funds and what are my rights? I need some cash just for day to day living and can't get to it. Any suggestions would be deeply appreciated.

 

[bigun]

It sounds like the hospital got a judgment against you and attached your bank account. If this is the case, you need to figure out a way to pay 'em.

 

[JETX]

Random comments:

Q1) "In 1999 I was in the hospital for 2 days ans was covered by insurance. The bill was never paid"
A1) This is a common misunderstanding. When you complete the medical information form and sign it, you are promising to be responsible for ALL bills incurred during your treatment. This means that YOU must pay. In this case, you had insurance to help cover YOUR debt. You relied on the insurance company and the hospital to resolve your debt, but that simply isn't the way it works. The responsibility is still on YOU to assure that either the insurance company did their job (and covered your bills) or that YOU pay them. Obviously, you didn't.... and the insurance company didn't. This debt then falls on you.

Q2) "and the hospital retained an collection attorney who has put all my money on "hold" I can't get a dollar out or pay one bill."
A2) Except in very unusual circumstances, the hospital can't just 'put your money on hold'. In order to do this (called garnishment), the hospital (thru their attorney) obviously filed a lawsuit against you and got a judgment.

Q3) "I have good credit and now feel my credit standing is at risk."
A3) Your failure to pay the due bill (to the hospital) has definitely put your credit standing at risk. And the debt is very probably reported on your history.

Q4) "How long can they hold these funds and what are my rights?"
A4) When they garnished your bank account, they served you with notice of the garnishment. READ the notice, it will include some information about how to challenge the action and in what conditions. At this point (after judgment) your only right is to negotiate payment of the amount and to pay it. Then, you have the right to obtain a 'Satisfaction of Judgment' and to have it filed with the court. Finally, you can send a copy to the credit agency and it will reflect paid, but the matter will stay on your history for as long as 7 years.

Q5) "I need some cash just for day to day living and can't get to it."
A5) That is what happens when you don't pay your bills and the creditor gets a judgment against you.

"Any suggestions would be deeply appreciated."
You're welcome!

 

[skyblu216]

No written notice

NY

Sir:
I was not sent any written notice, I found out by calling the bank to check on my balance and the checks that have cleared, which stated I was $8000 negative. The bank told me, not the attorneys...This was Friday and I still have not received anything in writing. Also, I had one of the best policies offered by that particular healthcare provider and that bill should have been paid. However, I do realize now, that there are many class action lawsuits pending against this company. for failure to pay certain claims and is under investigation in many states. I realize this is to be a long arduous process, and I am determined to see it through. Most of these healthcare providers take far too much advantage of their subscribers. Thanks for your in-put anyway.

 

[JETX]

Okay, if you claim to have gotten no notice, contact the bank and find out EXACTLY under what authority they allowed the freezing of your funds. When they give you the garnishment order information, find out the case number and the court. Then, contact the court and get a copy of the file (including a copy of the notice of service of the lawsuit AND the garnishment process).

Then, once you have the facts (rather than just conjecture), you can try to resolve the matter.