Should we take the settlement offer...?

Question

About 10 months ago, my wife went to an emergency room because she was having terrible pains. We did not have the funds to pay the bill. For last few months a collection agency has been trying to collect the funds; however, we still have enough money to pay. Last week, we received in the mail a settlement offer to only pay 50% of the bill. This is something that we can arrange with our parents help. Should we take the offer of not? I am afraid to they will come later asking for the other 50%. We are college students, and we are barely making to pay our education. We the intention of paying, but health care is so expensive, and we do not have insurance. Please let have you advise. Thank you! I will attach the letter content in an additional comment.

PO BOX 69 COLUMBUS OH 43216



Name Last Name
Address, Waco, TX 76706





February 6, 2007



-SETTLEMENT OFFER-



Client Name: DOCTORS HOSPITAL OF LAREDO Account#:XX-XXXXXXX



Current Balance: $1248.96 Settlement Offer: $624.48



We have been authorized to offer you a settlement on this account if you agree to pay 50% of the current balance as indicated above. To take advantage of this offer, please send payment to our office on or before MAR 08 2007. In the event you are unable to make the payment within the time frame suggested in this letter, please call our office.



This communication from a debt collector is an attempt to collect a debt and any information obtained will be used for that purpose.



MRS BUTLER 1-888-547-5354



SEE REVERSE SIDE FOR IMPORTANT INFORMATION



Make Payment To:



I RETURN THIS PORTION WITH YOUR PAYMENT I



Name Last Name



Account # : XX-XXXXXXX



Current Balance: $1248.96 Settlement Offer: $624.48 DOCTORS HO

I want to know if the letter (above) counts as the written statement to protect ourselves from them trying to come later and try to get the rest. Thank you!

Answer 1

ask a lawyer

Answer 2

When my husband and I first started out, we didn't have any insurance either. I had my first child and a huge bill and we had no idea how we were going to pay it. My husband called the hospital in order to set up payment arrangements. When he asked how much we would have to pay a month, because we were on a limited budget and could only afford about $25 a month, she told him that the hospital HAD to take what we offered for a monthly payment (within reason, of course). At this point, my husband was kicking himself for not saying $15 instead. LOL Things ended up working out so that we didn't have to do that, but the point is that they accepted that for a few months until we ended up being able to pay the balance.

My advice is for you to call the hospital billing dept. and try to work out a payment plan. They will work with you if you give them a shot. Most times, they only sic creditors after you because they haven't heard from you and therefore assume that they won't receive a cent unless they threaten you.
If that option fails, THEN I would consider the 50/50 shot. The problem with that is, after you make the initial payment, the next one will be a few weeks later and you'll have to depend on your parents again. You might as well just ask them to pay the whole thing for you, because that's what'll end up happening. However, if that's what you need to do, there's no shame in asking for help either.

I hope some part of this helps...

Answer 3

I'd say seek out the advice of an attorney, but unless you happen to have one in the family or one who's a friend, the consultation fee might be almost as much as the settlement offer.

The offer seems pretty reasonable to me. See if there's any possibility of paying the amount off over time- if there's not alot of interest involved, it might make it easier for you.

Whatever you do though, don't ignore the situation. Chances are that it won't go away, and could do real damage to your credit.

I also strongly advise that you look into low cost health insurance. Call any of the major companies and ask for information about this- most should have some sort of coverage for people with limited incomes. You're taking an incredible chance not having it- one serious illness and you could wipe out whatever money you have and whatever money your parents have- I assume they'd want to help.

But most importantly, if you do take the offer, make sure the hospital signs a RELEASE, which in effect means that they are releasing you from any further monetary responsibility and will not pursue the matter if you paid the agreed amount.

Hope this helps. Good luck to you.

Answer 4

Collection companies typically buy these accounts for $.10 on the dollar (which is one of the reasons that health care providers charge such outrageous prices to those who don't have insurance), so the collection company will still make money on the account, even if you only pay half.

They call it a settlement for a reason. It's a contract that you agree to with the company. Keep the documentation if you take the offer, so you can prove that it was offered as a settlement (meaning that the matter will be closed if you take their offer.) The reason it's important to keep the documentation is because they may still try to come after you for the rest of it, even though they aren't allowed to under the terms of the settlement. (It's not likely, but it does happen.) You have rights, though. (See link below.)

If you can pay the settlement amount, that will likely be the end of it. However, since it has gone to collections, it will show up on your credit as an account that was referred to collections and it will show that you settled for a lesser amount.

You could most likely have worked out a payment plan with the hospital if you'd approached them earlier. But once it's gone to a collection agency, you really don't have a lot of options.

Answer 5

Whether they ask you for the other 50 % later or not, this is still money that you owe to the hospital.
If you can pay for it, pay for it. Maybe you can arrange monthly payments w/ the collection agency instead of a lump sum.
I know times are tuff and you are in college, but this is life, and stuff happens. Take this as a lesson learned. Everyone should obtain medical insurance-most employers provide medical, are you and your wife employed?

Answer 6

Get them to write in the letter that they will report this a zero balance. Then, it will show, settled, zero balance. Also, that they will let the original creditor know the account has been satisfied.

If they state this, there will be no recourse against you.

Also, it is possible for the original creditor to send you a 1099 to report on your taxes as income for the amount reduced. This could happen, not guaranteed.

Answer 7

This sounds like a good option. However make sure you get in writing that they are accepting x amount as payment in full.

BTW the forgiven portion of the loan is reportable as income for your income tax forms.

Answer 8

A contract supply in fact potential that the opposing social gathering needs to come again to the table with you and your criminal expert to settle the criminal concerns. It additionally potential that this your hazard to barter a freelance which you think of is honest. working example. if the different area provide you with $a million million then you are able to settle for or reject it. although, you and your criminal expert could make a counter supply on what it is going to take to settle the lawsuit. i could urge you to be careful. in case you pass to trial. you may could desire to get a judgment against the defendants a minimum of 10% - 15% larger than your case assessment award. or you are going to be responsible for the criminal expert expenses. a minimum of it is the way it fairly works in Michigan stable success.

Answer 9

Medical bills are not bought and sold due to the HIPPA laws. Medical usually settle around 80%. You will not do better than this and you have it in writing. You NEED to take this offer.

Answer 10

better u can
ask a lawyer