How to Deal With Overdue Medical Bills

Drowning in overdue medical debt is no picnic in the park but there are a number of things you can do to make things easier. Follow these tips and in time you'll be able to get a good night's sleep again.

Instructions

Get Organized!

1

Make a list of every single creditor you owe money to. Write down the amount of the debt, the amount of the payment and the date it should be paid. Write down each address, phone number and leave a spot for a contact person (or write one in if you have it). Include outstanding debts that aren't medical bills, too. This includes, personal and school loans, credit cards, rent to own items and everything else you have to pay on time. This is really important, so don't skip any of the information -- it will save you a ton of headaches later on.

2

Make a second list of all other bills. Include your utilities, mortgage or rent, cell phone, cable bill and every single thing you have to pay each month. Don't leave anything out because once people start digging around in your finances, they will know what you owe to whom. It may not look so good that you owe a ton of money to a fancy boutique or cigar shop, but be up front with it. You have to show exactly where your money goes every month so that you can show the creditors that you are in trouble and need some help.

3

Gather your proof of income -- your last tax returns are especially important. Everyone will want to see this statement. Gather the last two or three bank statements, too -- they'll need these as well. Make a neat list of all your monthly expenses and compare it to your income to see if you are really in trouble or you're just really mismanaging your money.

4

Call every one of your creditors. Ask for the business office of each one and tell them you are having trouble meeting your bills because your medical debt has gotten overwhelming. First, ask them if they can help you by forgiving the debt. You will have the best luck with this one with independent doctors and groups and hospitals. Large chains tend to do less of this -- but try this first anyway. If they say they don't do that, say you're sorry but you had to ask. Then ask what kind of payment plans they can arrange. If they won't work with you, just move to the next on the list. Be meticulous about recording these calls -- name, date, what was said, etc. ALWAYS get a name -- first and last if you can. This all will save you if there's any snags. Even the courts honor meticulous hand written records.

5

If you have any savings or you can get hold of any money, you can ask about settlements. If your bills are late, often companies will offer to let you settle the debt -- even big companies are good for this many times. Expect a payout of 30-60 percent of the bill. Sometimes they will let you make a few large payments but some want the whole amount immediately. You'll get the best results with small companies who may need the money and really large ones who can afford the tax write off. Be sure to call every one before you actually send any money -- you want to pay the most off with the least amount of money that you can to make the biggest dent in the debt.

Be Patient

6

Call every single creditor -- collection agencies and attorneys included. Be very honest with them -- realize that they have heard every outlandish story and blatant lie imaginable because of the work they do. Let them know that you want things settled -- that your name means a lot to you and you are really trying to do the best you can. Tell them about your situation -- if you had no insurance, a sudden or chronic condition, another sick or handicapped family member, a second mortgage and so on. When they ask -- and they will ask -- for records, offer to fax them right away. It's worth paying to do this as it shows you're really serious about settling this debt.

7

Stop people from hounding you at home or work with a simple letter. Get the address of whoever is bugging you and write to them. Tell them who you are, where you live and where you work and if there are account numbers, include those. Tell them that you do not want to be called at home or at work concerning this matter. (They can still contact you by mail but that is only fair since you do owe them money.) They are bound by law to stop calling you at your request. Make it polite but businesslike and state very plainly that you want no phone calls at home or work. ALWAYS make a copy of each letter sent out and send every one registered mail so no one can say that they never received it.

8

Know that no one has the right to be abusive or sarcastic or threatening to you. If someone is insulting you, ask to speak to a supervisor and report what was said. Tell the supervisor that you want to work with them but you will not work with that person again. This is a problem only when there's only one person employed working with debt collections. Then ask to speak to the office manager or someone else. Tell whoever you talk to that you are sending a letter stating that you do not want any more collection calls at home or at work so they will have to contact you via mail from then on. Don't listen to threats about someone taking away your home or your car. If you are overly worried about this, you will need to see an attorney. Call around - many of them do consultations free of charge. A bankruptcy attorney or one who deals with debt collections will be the most knowledgeable in this area.

9

Be very patient -- this is a long process of talking, mailing information, talking some more, mailing some more. Some debts are settled quickly and some take a very long time. Realize that if you aren't making payments, these folks are anxious to get something worked out.

10

Write down all your bills again -- with the terms and settlements offered to you now. Add up your bills now. How much is your debt reduced? Can you meet these new monthly payments? Don't expect to have a lot of fun money left over right now -- that will come in time. Just see if you can honestly meet these demands. If not, you need to talk some more. Remember that this only works if you are honestly trying to pay off your debts. If you have enough money but just don't want to spend it, they will figure that out.

11

Owning a lot of property is a hindrance to this process as is having a lot of savings. If there are means to pay these debts, companies don't really care if you don't want to use them. They only care to help people who have legitimate reasons why they can't pay. You can, of course, have a place to live but an overly comfortable lifestyle should be cut back to pay your bills which they will be very quick to point out.

12

Keep at the process. If you get a settlement or payment plan realize that it will probably be voided if your don't pay what you've agreed to on time each month. If there is an emergency, you have got to call and tell them why their payment will be late. IF it's legitimate, they may be willing to renegotiate.

13

Remember that bankruptcy is a step when nothing else will work. Don't start with that option, however -- avoiding it will save you a great deal of trouble later on.

14

There is a statute of limitations on medical debt -- sometimes it's 3 years, but it can be 5 or 7. Call a bankruptcy attorney's office and ask to speak with an attorney or paralegal. Often the person who answers the phone will even know this. You can also call a public library and ask for the research librarian to find out for you. If you have bills that may fall into this category -- no one on the collections end will tell you this. They can still ask for money. IF the time has elapsed on a debt just don't pay it. It's is important to remember that this only applies if you have made absolutely NO payments within that time. If you sent them $2.00 a year ago, the time starts counting from the last payment made -- never from when the debt was incurred.