Jul
26
What if the collection agency is not able to collect the money from the charged individual?
Filed Under Collection Agency
a n asked:
A friend of mine is being receiving bills from a collection agency for the past hospital visits because of his deactivated health insurance. Information on the circumstances which might arise is expected.
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6 Responses to “What if the collection agency is not able to collect the money from the charged individual?”
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There is a saying, “you can’t Get blood out of a stone”
BUT…..
If the collection company can’t get you to pay, they will drive you nuts trying, they will affect your credit rating, which will cause you trouble in life, and they can even go to court and get a judgement against you, and an order to seize your property or even garnashie your wages in the future.
I always pay my bills and life is good.
Your friend need to find out if the health insurance is liable for the bill. Was he covered at the time he was in the hospital. If that is the case you need to put it in writing and direct the collection agency to the health insurance company. Alert the credit reporting agency to the fact that the insurance company is responsible for the hospital bill.
In the event he was not covered, make arrangements to pay off the bill at a rate that he can afford. If he has $10.00 left over at the end of the month, this is the payment he should make.
I agree with Bob. Also, your friend might want to try to work out payment arrangements. Maybe he could pay a little every month til it’s paid off. Some collection agencies would go for that.
They leave you alone after a year or so depending on the amount owed. medical bills dont adversely affect you credit nearly as much as other unpaid debts.
Well, they either keep trying, or sell the account off to another collection agency.
He’ll owe it forever, the only thing that changes is which agency has the right to collect it.
If the condition was pre-determined while still insured, the insurace company has to cover the bill(s). It is the law! However, I don’t know if there is a time limit, such as a year or two. I wish you luck, for I know what it is like to be in over your head.
P.S. Do you own your home? Have you had it a long time? You may be able to cash out the equity to pay the bills. My credit was so bad that I sold my home and am now renting. But I did walk away with $60,000 after paying my debts!!