How does someone handle a creditor that will not accept the amount I can pay.?

Question

My budget simply will not allow me to pay the monthly amount that a certain hospital requires to keep from going to collections or garnishment. We are tapped out! My husband and I went for several months being promised health insurance at his job and when it came through it was a catostrophic care plan with a $6,000 deductable. He has during that time had to visit several hospitals for health problems and the bills are almost $7,000! Please...someone help!

Answer 1

Simply put, it seems as if the hospital is trying to strong-arm you into paying more...something which is far too frequently attempted.

Put your situation into writing, explaining your current financial income and expenses, as well as how you have arrived at the monthly amount you can afford to pay, and then explain that in the event that the hospital opts to litigate to try and obtain more funds per month, you will have no choice but to furnish the financial documents supporting this letter in your defense.

Have two copies notarized, then send one of them to the hospital. Keep the second one for your records. While the hospital definitely wants as much money from you per month as they can get, they also will have to bow to the fact that if the funds are not there, then they are not there - suing you in court will not make the money appear, but instead will cost them additional moneys which they will be out for pursuing a frivolous lawsuit when they had been given fair written warning of your situation (something their lawyers will tell them, rest assured).

The courts are logical places, and I cannot see a judge imposing an order of garnishment on you if this case were to be brought to trial - assuming you have the documentation to back your claims of being tapped out (sorry, but I have to point that out; courts don't take ANYTHING on faith, but need to see a balance sheet).

Answer 2

I believe (although you should verify this) that they have to accept whatever you are giving them.

You should continue paying this bill monthly regardless of whether or not you can pay them what they want. You should also send them something in writing in regards to what your situation is and what you are able to send them on a monthly basis right now. Keep it an amount that you know you can afford and send at the very least that much a month, if you have more money one month to send then do so, but always send the minimum amount that you can. But also having something in writing (I'd send it with one of your payments- because by them cashing the check tells you they've received your correspondence) you will have some sort of documentation that you informed them of your situation. Also make sure that you have copies of all payments that you have made to them (cancelled checks are preferrable).

The bottom line for this is that you should know what your rights are before going to negotiate and/or settle with this creditor.

Answer 3

when dealing with collections/creditors you usually can't settle for any amount lower than whats owed until it's actually in a collection account. At that point you can negotiate down the $ amount. A good barganing chip is bringing up bankruptcy action, The creditor will then consider being paid a portion or not being paid at all.
I hope this helps.

Answer 4

I am sorry for your health bill problems. It may depend on the state you live in ,but I have heard that usually if you send a five dollar payment every month this will keep the collectors from your door. Good Luck

Answer 5

They will accept it. If they want the money they will take what you can give them. As long as you are paying them something you are not in default, you are only considered behind, as the remaining blance will be rolled over from month to month. You should contact a credit counseling agency and see about consolidation options.

Answer 6

I think as long as you are making some monthly payments, they cannot send you to collection, but you have to keep making payments.