My husband accumulated over 800.00 in doctor bills last year and we haven't had the money to pay until now.

Question

We got our income tax check back and I sat down to start sorting through the bills today and organized everything. Our mail came this afternoon and one of the collection agencies is offering a settlement amount for about 100.00 less than the original bill. Should I accept this, or just pay the original amount. I am just scarred it isn't real and that they will hit me up for the other 100 bucks in the future. How can I make sure that this is true? If so, should I wait for the other labs to send settlement amounts?? We live in Texas and I'm also not sure how medical bills will effect our credit and already being almost a year late can't be good, but if I pay settlement amounts I don't know if that will make it worse.

Answer 1

I would check with the lab. It they have sold it to a collection agency then it has already been reported to credit reporting agencies as being in default and the collection agency owns the bill. They can try go get whatever they can. They probably bought it for half price. It is probably too late to pay the full amount to the lab.

BTW: As a sideline. If you are getting back a large refund (over $500) why not change your withholding amount so you will have more money every payday. It is better to owe a few dollars than to get back hundreds without interest.

Answer 2

I used to be a bill collector and we used to offer settlements all the time. It is real, but when you accept it, it shows on your credit that you did not pay the full amount. If it's only a difference of 100.00 I would highly suggest you pay the full amount. If it were 40% I would say take it. Medical bills on credit are some of the most forgiveable. Most people have them even with perfect credit. Sometimes its just a matter of the insurance paying late for some reason. If you pay the whole thing it looks really good for you.

Answer 3

I listen to Clark Howard, a syndicated radio consumer advocate. He talks a lot about dealing with collectors. His 2 main rules in this situation are:

1. Do not send a penny until you have a written agreement in hand from the collector.

2. After you've paid the amount you've agreed to, the agreement says the account is to be considered "Paid in Full" and reported as such to the credit bureaus.

Then make sure you save that agreement and proof of payment until that debt would drop off of your credit report, normally 7 years, in case they sell the remaining debt or somehow come back to you again.

Answer 4

They always offer these settlements in the spring of the year. I just settled with Verizon, yeah I got someone a cell that they did not pay, don't do that, for half of what I owed them. But to make yourself relax, simply call the company and verify. But don't mention your money and don't give them a check by phone, only send them a money order!!! OBTW get the persons name and extention you talk too. Blessings.

Answer 5

Another consideration: If you settle a debt for less than the full amount, you may receive a 1099 at tax time. I'm not sure at what level these amounts are reported to the IRS but if reported they are subject to income tax.

Answer 6

Relax.....everyone let's their medical bills slide a bit...they are so much money....maybe just contact each provider and tell them it is really bugging you and you want to pay and inquire what the least they will accept is for payment in full....good luck......it's nice to know there are some people out there who don't blow their tax returns on crap when they know they owe other people and bills.....feel good...

Answer 7

i wouldnt worry ...just remember to send me a few hundred bucks,,...them other bills will wait...