Delinquent Medical Bills Eliminated

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delinquent medical bills

3 Things to Know When You Can't Pay a Medical BillThis is for people with delinquent medical bills.

There are 3 things to know when you have delinquent  medical bills:

  1. Delinquent medical bills can ruin your credit.
  2. You could be sued. Your wages can be garnished. Other assets can be jeopardized. 
  3. Bankruptcy can discharge delinquent medical bills no matter how much you owe.

 

Here is why people often ignore medical bills. Surveys show that most people decide how important a bill is before they pay it. Most people put medical bills at the bottom of the list.

Also, many people think that delinquent medical bills carry no penalties. The threat of having a credit card cancelled is a big fear. That makes people pay credit cards ahead of medical bills. And, credit cards have a structured payment schedule. Making a minimum payment is acceptable. Not so with a medical bill.

When medical bills arrive, they are “all due.” Payment in full is asked for. Medical providers are not in the finance business. They don’t offer easy “minimum monthly payments.”

delinquent medical billsAnother reason people delay medical bills is because they don’t know what they are paying for because medical bills are very confusing. A numerical treatment code is used to describe each medical service. That helps insurance companies process claims. But it leaves medical consumers baffled. And the medical terminology on your bill isn’t much help, either. Modern medical terms are like a foreign language. A consumer can’t understand what they are being billed for. That makes people reluctant to pay. Another reason is people don’t know how much their insurance is going to pay.

Whatever the reason, delinquent medical bills are trouble. Your bill will usually end up at a collection agency. Debt collectors working on medical bills can be downright brutal.

How to deal with delinquent medical bills in collection.

  1. A collection agency will report most debts. The report goes to the credit bureaus. This hits you with a serious black mark. It will damage your credit. It also creates a “coercion factor” to use against you. Even if you dispute the debt, many people will pay it anyway. They just want to protect their credit. Of course, you can’t pay it if you haven’t got the money.
  2. Most collections agencies will accept a partial settlement. If you settle, your credit report will show the debt is “settled.” A reasonable settlement will usually be around 50%.
  3. Bankruptcy could be the best cure for catastrophic medical bills. Talk with an experienced bankruptcy lawyer. Most people who file bankruptcy don’t lose anything. A bankruptcy lawyer will help you understand all the advantages. And, any disadvantages.

3 Things to Know When You Can't Pay a Medical BillThe Los Angeles bankruptcy lawyers at Bayer, Wishman & Leotta can help you with delinquent medical bills. They will give you a completely free bankruptcy consultation. There is no obligation, and you will get the bankruptcy advice you need. You have valuable rights. Even for medical bills. A bankruptcy expert with decades of experience will answer your questions. The firm has offices throughout the Los Angeles area. Appointments are available every week day, and even on Saturdays. The phone number is 800-477-3111.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Leon Bayer and Jeffrey Wishman are Los Angeles Bankruptcy attorneys. They have been practicing bankruptcy lawyers in Los Angeles for 37 years and are Certified Bankruptcy Specialists by the State Bar of California. These are lawyers who bring experience, skill and creativity to the highly complex area of bankruptcy law. At this Los Angeles law firm, the your initial consultation with an expert is free. Mr. Bayer is a coauthor of Nolo's The New Bankruptcy: Will It Work for You?, authors the “Ask Leon” series on Nolo’s Bankruptcy, Debt & Foreclosure blog, and writes on bankruptcy topics for Nolo’s website. In addition, Mr. Bayer devotes a significant number of hours to volunteer legal services. The State Bar of California has commended Mr. Bayer for this work every year since 2004.