Bill Collectors/Medical Bills

[ElizabethC]

I am having some major issues with bill collectors over medical bills. 2006 was NOT a good year for my DH and I. Between both of us we have had 3 major surgeries in the last 6 months. Mine were with complications and I was out of work w/o pay. We are still trying to catch up our mortgage and car loan AND deal with the medical bills.

Even with insurance coverage OUR portion of the bills are approx. 10 K. We have entered into payment arrangements with several of the creditors but unfortunately a few of them will NOT compromise. They are demanding that we pay off their portions of the bills in 12 months or less. There is NO way that we can do that. The most I can afford is 50.00 per month per creditor (since there are so many of them) They are wanting at least 200.00 per month or they said they will sue and/or garnish my wages.

I don't even make enough money, nor does my husband , to pay these guys 200.00 a month each.

I don't know what to do. I want to pay my bills but they will not compromise PERIOD. Extremely hard nosed and unyielding. Bankruptcy is not an option. I don't have nor believe in credit cards and I have noone that I can borrow money from.

Any suggestions?

Elizabeth~*

 

[seniorjudge]

You may need to look into declaring bankruptcy.

 

[debt_helper]

you can only have your wages garnished by 1 creditor at a time, so if it comes to someone getting a judgment against you, you may just have to let the others line up to get their money and stop voluntary payments. Unfortunately, other creditors can attack your other assets if waiting for a wage garnishment does not satisfy them. That means they could potentially repo your car, sell your personal property, or even sell your home. Bankruptcy may be your only choice.

 

[ElizabethC]

Thank you both for your timely replies.

I cannot file bankruptcy since I did that just this past year (medical again!)...*sigh*..

So I guess I am stuck.

DH was home again due to the massive ice storm here in the midwest (he is a teacher and school is out)...and he called most of the creditors. All, save for 3 of them, are willing to try to work with us. In fact they were very kind and considerate and quite pleased that we took the initiative and called them instead of it being the other way around.

Unfortunately the ones that won't bargain are the ones that we owe the most to. Their portions are 2-4K each. How in the world they expect that their bill is the ONLY bill and that every bit of money we make should only go to them is beside me.

I am just so frustrated as we are truly trying. Not giving them a song and dance. Just the truth. I just don't know what we are going to do. I just don't.

I am going to try to find a second job. The job market is incredibly tight in our area and we are not near a metro area. Layoffs are the norm right now instead of new hires.

If anyone has any other ideas let me know...

So if I understand this garnishment (if it goes to that point) is that there can only be ONE at a time? How is the dollar amt. set? Is it normally equitable or are we at the mercy of the judge/court/creditor? I'm just trying to get myself prepared in case it goes that route. Even though I am going to bust my rear end to try to come up with the money they are demanding.

Thanks again...

Elizabeth~*

 

[debt_helper]

So if I understand this garnishment (if it goes to that point) is that there can only be ONE at a time? How is the dollar amt. set? Is it normally equitable or are we at the mercy of the judge/court/creditor? I'm just trying to get myself prepared in case it goes that route. Even though I am going to bust my rear end to try to come up with the money they are demanding.

Thanks again...

Elizabeth~*

The dollar amount is a percentage of your gross wages as determined by your state (usually 10%). Athough if you make an objection to the wage garnishment, the judge may take mercy and reduce the percentage (commonly to 5%). And yes, only 1 at a time, but the creditors can all get in line and garnish one after the other.

 

[ElizabethC]

once again... thank you for the input.

Right now the only creditors that are pushing the issue of high payments are 1 hospital and 2 drs. billing services. They are the ones that are wanting 200.00 each monthly. All the others are workable with the payments we can muster.

So even if (worse case scenario) that all 3 of them garnish... I don't see how it would be any worse than trying to come up with 200.00 each x 3 monthly. If they go off of just my income you are looking at under 200.00 per month even at the 10% rate. If they factor in my DH's salary we are still well under the 600.00 that they are all demanding....

I don't want a garnishment to happen and I will do anything in my power to try to keep this from happening... but gosh, I can only do with what I have .... they are just being ridiculous. Especially in lieu of what transpired. Dear Lord almighty I almost died and surely didn't endeavor to have so much medical intervention....

Sometimes I feel it would be easier if I were destitute and had medicaid. Then this wouldn't be an issue... but by gosh I AM going to pay my share... *s*

Thanks again.....

Elizabeth~*