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Hospital sent bill to collections without informing me
Magus`
The fun has been DOUBLED!Registered User regular
The fun has been DOUBLED!Registered User regular
Back a few years ago I went to the ER on the (very bad) advice of a nurse at my doctor's office. I got a bill for over $4000 which my work insurance decided to pay about 3% of. I managed to get more taken off but still owed around 2,800. I set up a payment plan and all was good.
I go in today to discuss another ER visit I had that wasn't covered by insurance due to some epic bullshit of losing my job (and thus insurance) over stupid shit. I attempted to get Medicaid to cover it (and they still might since I applied a month after and you get 90 days prior to applying). However, I found out while discussing this they sent my original balance to collections. When I asked why they said I hadn't paid since January of 2016. I pointed out that it was set up for automatic payments so I had no idea why it would just stop. They essentially shrugged at me and said it was "my responsibility" to make sure it was being paid.
They made no note that the payments ever stopped or that it would be going to collections. I have had no letters or calls regarding the bill from said collection agency. I've never even had to deal with a collection agency before. Anyhow, the employee was nice enough to provide me with the number to said collections, though it was busy when I called. My question is this - how should I handle this situation? I only just recently got a new full time job and the pay is not great. The hospital employee stated that the agency will probably want "way more" than $50/month (the minimum for the hospital payment plan). I can't afford that. I also assume there are probably a shit ton of late fees now because I "stopped" paying in January of last year. I think it's massive bullshit they can just allow it to go silently delinquent and send it off to collections like that. So, uh.. help?
I go in today to discuss another ER visit I had that wasn't covered by insurance due to some epic bullshit of losing my job (and thus insurance) over stupid shit. I attempted to get Medicaid to cover it (and they still might since I applied a month after and you get 90 days prior to applying). However, I found out while discussing this they sent my original balance to collections. When I asked why they said I hadn't paid since January of 2016. I pointed out that it was set up for automatic payments so I had no idea why it would just stop. They essentially shrugged at me and said it was "my responsibility" to make sure it was being paid.
They made no note that the payments ever stopped or that it would be going to collections. I have had no letters or calls regarding the bill from said collection agency. I've never even had to deal with a collection agency before. Anyhow, the employee was nice enough to provide me with the number to said collections, though it was busy when I called. My question is this - how should I handle this situation? I only just recently got a new full time job and the pay is not great. The hospital employee stated that the agency will probably want "way more" than $50/month (the minimum for the hospital payment plan). I can't afford that. I also assume there are probably a shit ton of late fees now because I "stopped" paying in January of last year. I think it's massive bullshit they can just allow it to go silently delinquent and send it off to collections like that. So, uh.. help?
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On the other hand I'm not sure about the legal responsibility of either parties in re: sending something to collections. You might want to sit with a lawyer and see what laws apply there, I am not 100% sure they can just send it to collections without at least a warning or attempting to collect it themselves, especially not without sending a bill. That's gotta be illegal on some level, but IANAL.
Call back and calmly explain that and maybe you'll get someone sympathetic, but, be prepared for having to get a lawyer/go to court over it.
Another option is to find out who owns the debt and settle it (most will do payment plans or take like 25-50% if you can lump sum it).
looks like this probably applies to you
good luck Magus
If not, when did it stop and why didn't you notice it? I feel like there is less recourse here; a month or two, maybe, but missing 12 consecutive payments without noticing that payment stopped seems like it should bear some responsibility.
I'm also massively down in credit card debt that my mom took out in my name. Unfortunately I can't afford to do anything about it because I'm relying on her income to pay what bills I have (I get paid for shit).
Basically my credit is fucked and I don't see any path to get out of it.
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As for the credit card debt that might be able to be addressed with a lawyer but it will probably ruin your relationship with your mother.
You might look into bankruptcy, it might be good for your situation.
Steam Profile | Signature art by Alexandra 'Lexxy' Douglass
Fortunately it's under my wife's name and doesn't affect my credit, which is the only one that matters in my household.
You can't give someone a pirate ship in one game, and then take it back in the next game. It's rude.
depends on the timeframe
bankruptcy will fall off your credit in 7 years, and allow you to get out from all the bad debt all at once
It also allows you to rebuild your finances as is, you don't need a better job to do it, you just have to be able to afford to file and be willing to part with a lot of your assets (if you even have any) for chapter 7 or sit on a payment plan for 3-5 years for chapter 11.
Do you expect to be debt free in 7 years?
Unless you have other non-student debt, it's probably not enough to go for bankruptcy. That's usually for larger sums.
Most times it's just a means test (ie, you don't make enough money to pay your debts and live a comfortable life).
~10k would be enough in most cases, so if Magus has got 4k in medical bills and 6k in those outstanding credit cards and only makes like $13 an hour, there's a good chance for qualification there.
Speaking to a bankruptcy lawyer helps, they're the only ones who can really tell you for your state. They can also direct you to a consolidation service that will help you if you don't qualify, instead of those fly by night internet/tv ones.
$4,000 in med bills.
$14,000 in student loans
$24,000 in a car loan
$20-30,000 in credit card debt (98% belongs to my mom)
I make $11.28/hr. Mind you I'm making my mom pay off the credit cards because she's the one who ran them up in the first place.
If I could land a job that would pay me what I'm worth (and my mom gets a job to supplement her SS), I could be debt free in 7 years, I'd think.
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When you say the credit card debt belongs to your mom, what do you mean? Is it in your name or hers?
My gut is telling me Magus mother took out CC's in Magus' name and used them.
Their options boil down to 3 things-Harassment, lawsuit, and sale of debt. Now they may sue you, and there is some shadiness that goes on when it comes to sewer service. Most creditors though don't like to sue, it's time consuming and they risk having the consumer pop a bankruptcy mid litigation, it's expensive for them, and it doesn't give the best ROI.
For the highest ROI, considering they paid a massive discount for that debt, and most of the time when they call.
They'll start with harassment, and scare tactics, but use words that don't trigger lawsuits under Fair debt FCRA.
Then they'll offer you a payment plan and a slight deduction in the total debt like 10%-15%.
From there my strategy (and I've had some fucked up credit (it was at 300 for a while))
I personally would say "that's too much, I'm thinking that since my credit is already busted up, my debt load is too high for my income, I don't have any assets I think it might be time for me to consider bankruptcy. Thank you for your time."
1 of 2 things happen, they immediately sell your debt, or give you a significant discount. There will be more harassment and idle threats.
This has only not worked on municipal debt. Those fucking DC camera tickets, when they turn them over to collections, they just hold firm until you pay to remove.
YMMV, and as always INAL, consult one before considering bankruptcy.
Your debt load is roughly $65,000 and you make about $23,000 a year. Only 14k of that is not dischargeable...I would talk to a lawyer. You can buy a house after about 3 years of a bankruptcy, especially if you don't have any assets and you don't live in Washington DC area.
My dad made about twice what you do and had a 65k debt load (his was all revolving), and he declared bankruptcy.
First off, before you do anything re: the Bankruptcy, you need to get the credit card thing in line. It won't do you any good to file if your mom is going to take out a card in your name or sign your name to something, and that's not some shit you want to be explaining to a Trustee. Get that sorted first.
Second, you do you, but if I was making 12 an hour I wouldn't have a 24K car loan. That seems excessive unless you don't have to pay rent.
I was in an extremely similar position to you Magus, except the credit card debt was much lower and the student loan/medical was much higher, but it got me enough breathing room that I was able to sort it all out in 5 years.
You need to know EXACTLY what is being reported going in, because you're responsible for listing all of your debts.
Hell I listed the $40 I owed Blockbuster when I filed.
The latter, unfortunately. She argued since she'll pay them off it's OK. She is wrong.
My car loan is so high because the dealer lied about refinancing (apparently this is legal) and at the time I had a better paying job and only student loan debt (which was 8k at the time). I've already put 11,000 into the car, as well.
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Hospitals are pretty bad for this crap and I've been there several times. I have a whole bunch of medical debt, but at least it's usually interest free. The one time I did a payment plan with a collection agency it was $50 a month for about $250, interest-free, and after the last payment I called to make sure things were square, they said 'yeah we're good now', and then I went on my way.
All collection agencies are not complete shit to deal with, just most of them I think. :P
And see if there's some way you can lock down your accounts so your mom can't do that shit anymore. I'm pretty sure it's super illegal.
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She can get a loan and pay off that debt then pay back that loan (essentially a debt transfer). Debt can also be considered an asset and usually can be transferred. You can pay a credit card with a credit card (I don't necessarily advise this). Whatever you do, you need to get that 30k in debt into your mothers name and not yours. Make her come through on her promise to own that debt so it doesn't continue to fuck your life and your credit score. This is probably the easiest thing to take care of if you have your mothers support. If you don't, it will be the hardest.
Also you mentioned in your op that the total medical bill was around 2,800, how did it jump back to 4k?
Student-debt can not be erased with bankruptcy in general.
Note that if you declare bankruptcy the car is pretty much toast, I think it wouldn't be a wise move to declare over essentially ~4k added debt. Especially because you already put 11k into the car. You are going to take an 11k loss on 4k of debt doesn't sound like a good idea.
At minimum talk to the collection agency and find out how much it will cost. They will call or mail you at some point. If you have a lawyer friend or a trusted financial advisor go speak to them.
otherwise why have it be joint in the first place
fuck up once and you break your thumb / if you're happy at all then you're god damn dumb
that's right we're on a fucked up cruise / God is dead but at least we have booze
bad things happen, no one knows why / the sun burns out and everyone dies
You can't give someone a pirate ship in one game, and then take it back in the next game. It's rude.
I'm not sure what my current med bill is exactly. It's a combination of two bills. It's at least $4,000. Could be as much as $6,000. It's been super hard to follow shit due to the issue above.
Steam Profile | Signature art by Alexandra 'Lexxy' Douglass
1) Can you transfer that debt, you need to find out if it is possible. It is a really shitty thing for this debt to be in your name only when it is not yours. This needs to be transferred and your mother needs to speak with a professional financial advisor and possibly a lawyer. You absolutely cant let her habits become yours.
2) Can you afford the car? If you cant, you need to get rid of it. mRahmani's suggestion might be worth following up on. If there is enough equity in the car it might be possible to get a decent used car and pay down some of the medical debt. I doubt there is enough because it sounds like it is at least a year old. If you can afford the car, you probably want to keep it - you already put 11k into it.
3) Find out exactly how much you owe.
Also keep in mind you can negotiate with credit collection for the most part. They generally want to collect some money than none. So if you can't pay, tell them you can't. Its hard, and they might be really rude to you or seem like they wont budge but you might get something out of it. Don't accept payment terms you cannot pay, and get it in writing before paying anything.
If you don't know your total obligation you are going to have a hard time finding good advice. Did the hospital send both bills to collections? Even though you just got one of them?
You also need to start caring about money, and set a proper budget. And yes I would be out looking for a job that better fits your skillset, currently it sounds like you are not in one.
You need the budget to determine how much you actually can pay. There are all sorts of phone apps out there that can help with budgeting, so it doesn't have to be a spreadsheet budget.
Right now the monthly income for the house is about $3,100 with my job, my mom's SS and "retirement". I made sure she covers half the bills for obvious reasons. I'm also making sure her income goes towards what she owes in my name. Her credit is unrecoverably fucked.
If I can get a job with the KCPD it'd be as 90% pay raise. I have an entry test later this month. We will see.
Steam Profile | Signature art by Alexandra 'Lexxy' Douglass
You mom identity thefted you? That's really fucked up.
Dude...You are in a bad spot. Your mom hosed you pretty bad. I wouldn't bank on the KCPD job if it had a Credit background check requirement.
Sorry man :bro:
That's a thing? Mother fucker
Steam Profile | Signature art by Alexandra 'Lexxy' Douglass
you could get those off of your record probably
but your mom would probably also wind up in jail in the process...
E: and since you're dependent on her income probably not a prudent move at this point >_<
fuck up once and you break your thumb / if you're happy at all then you're god damn dumb
that's right we're on a fucked up cruise / God is dead but at least we have booze
bad things happen, no one knows why / the sun burns out and everyone dies
I'm not trying to freak you out, but it could be an issue, and it is something that your employer may ask you about.
Shit, I'll preemptively tell them.
Steam Profile | Signature art by Alexandra 'Lexxy' Douglass
There will absolutely be a credit check. A bankruptcy is something that can be looked past, your credit score being 500 because on paper you're skirting around a bunch of debt is absolutely not.
Police background checks aren't a joke. They legit ask you to detail every single personal thing of your existence and then verify that against a polygraph. I've been through more than one.
Now if you want to be a dispatcher or maybe a county sheriff and just serve warrants that's a different story and you might get on and work your way up but I can tell you without a doubt that with the number of college educated unemployed people looking at law enforcement unless you've got a military background you're not going to get a job over someone that doesn't have your financial baggage.
I'm not trying to bum you out, but it sounds like you weren't really prepared for that.
The "test" is like phase 1 of 10 you go through.
What's worse is you might even make it on board under conditional employment and they decide your debt is a liability and cut you half way through the academy and you're fucked again.
First off, you need to get your debt in order. Realistically you're not transferring the CC debt onto your mom unless you're royally prepared to break all ties with her and basically give her the option of being arrested for credit card fraud or pay up. Despite what anyone else says unless you want to either go behind her back and stick the debt on her and/or have her prosecuted for it you're likely going to own that debt. That's on you, but it needs to be dealt with sooner rather than later.
Second, get your credit score and credit reports. Find out how bad it's looking. Third, get out of that car and (in my opinion) file a Chapter 7. Let the bank have the car, get the credit card debt erased along with the medical debt. It's going to affect your ability to rent an apartment, but unless you've already taken out an FHA loan it won't affect your ability to buy a house as long as your credit score is at a 630 or better and you've got 5% down. I know because I've done this. Your Trustee and local laws may vary, but generally speaking even bankruptcy Trustees are willing to let someone get a house as it's a more sound investment than rent.
Third, you need to talk to a police officer. If you're not already doing it you should be signing up for ride along programs and seeing if there are community volunteer positions open. Think of it like trying to get into a nice college but needing humanitarian work. Police want someone that wants to be there, not someone that just wants an extra $10 an hour and a gun. Especially with the climate in America today. Ask them flat out. Tell them "hey, I have this debt I'm dealing with, I will be open and honest, but how can it affect me?" and ask that before you go too far in the recruitment process.
I'm happy to answer any questions you might have about applying to be a cop (I worked county corrections and a was a criminology/psychology major) and have filed for Bankruptcy and now live in a nice affordable home with two dogs, a wife, and two paid off vehicles.
There is ALWAYS a light at the end of the tunnel, just know your options before you walk into it.
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Good luck Magus.
Steam Profile | Signature art by Alexandra 'Lexxy' Douglass
Yeah I mean every county in your state should have a sheriffs department and most of them will have police. Also are you interested in the Fire Department? Because let me tell you, I'd have MUCH RATHER done that.
You get to work 3 days a week and have a second job if you want and people like you more! It's like the perfect occupation for dashing heroes! : )