Medical Bills

[WRose]

What is the name of your state?What is the name of your state?Tennessee
My friend had gotten really ill in 10/03, and was in the hospital for about a month and half. She was in intentive care most of the time. She had apply to state funded insurance before this, but wasn't accepted until afterward the medical bills racked up!(employer didn't offer health insurance) After she finally got out the hospital,she still wasn't able to return to work right away.
The state funded insurance agreed to pay a portion of the bills, but she still owes A LOT!! Over $100,000.00!!!!!
She was thinking about filing BK, but chose not to, b/c she will lose her home.
Anyway collections is calling her at work and at home. They want her to pay$1200.00 a month, she can't afford that. She told them that, then they suggested $750.00, that's still to much. She finally agreed to $250.00 a month. After all the harassing she received. That is still a little to steep for her right now. She has only returned to work about 3 months , she is playing "catch-up". What can she say or do about these collections.
Do they have to accept less $$$, than they agreed on? She just can't afford
to pay $250.00 a month right now. She may be able to pay more as time goes on, but not right now!!!!
Thanks, Wrose

 

[Rainaraines]

Well, first of all, since it is a collection agency, she can request IN WRITING that they not contact her by phone. They have to comply, or else they are in violation of certain collection laws. That will stop the calls. Second of all, they can agree to accept whatever payment agreement that they deem acceptable, whether it be $5 a month, or $5000 a month. Some companies accept what is called a "hardship agreement" where debtors pay a lesser amount for x amount of months until they get back on their feet. Have her call the collection agency and see if they will agree to something like this. Whatever she does, have her get EVERYTHING in writing. Collection agencies have a tendency to be shady...

 

[Ladynred]

I'm guessing your talking about TennCare - what a nightmare.

With medical bills that high, unless your friend makes a HUGE salary, she will never be able to pay off those bills. It will only get bigger as they tack on interest each year. $250 a month on $100K doesn't even cover the interest ! On a balance that high, they're only going to take small payments for a short time, its highly likely she'll be sued for it.

What makes your friend so certain she would lose her house ?? How much equity does she have in it ? Granted, TN homestead is nothing to crow about, but it does exempt $5,000 in equity. I'm assuming she was looking into Ch 7, but why not consider CH 13 instead ?? She can keep her home, no matter what equity she has, and she can probably pay the medical bills off at a percentage over 3-5 years. Something she may want to look into more seriously.