Protection from medical debt incured while in bk13

[andy158]

Since November of last year my wife and I have incured medical debt in excess of $6,000. Two necessary minor surgeries for both of us. My health insurance at work has taken a drastic turn for the worst since our new contract. Massive deductables and co-pays. We also pay $105/month for prescription co-pays on our maintenance drugs that only cost us $30/month last year.

We have been sending $10/month to 9 different billing services since November. My wife was having physical therapy 3X a week which cost us $20 co-pay per session. We have since stopped the therapy, but her condition is not improving without it. Three have given us final notice for payment in full (credit cards accepted..ha ha) or they will be turning us in for collection. I called and explained our situation and they said they take partial payments for 90 days and after that the balance is due in full. I haven't contacted our lawyer yet and am just throwing our situation out there to see if anyone else has been there.

[justbroke]

I haven't been there, but it certainly isn't dischargeable unless you end up dismissing and refiling (not suggesting this), or you convert to a Chapter 7. I'm not even sure $90/month even covers the interest on $6,000 of medical debt.

Are you below median income for your State/County? If so, have you looked into any of the medical assistance where they'll cover your major medical bills? I know that a friend of mine was injured in a fall and was able to get assistance for those specific medical bills.

[andy158]

I didn't think it was dischargable and have no problem repaying once out of bk. My primary concern is if they can actually collect if I am making an attempt to repay and can the bk protect us from collections (i.e. wage garnishment, etc) until we are discharged. I don't want the phone calls and full mailbox we experienced pre bk.

[justbroke]

The bankruptcy will not protect you since this is so-called "post-petition" debt.

[papie]

They can send you to collections, it doesn't really matter if you are in bankruptcy or not. I've worked in medical collections and also been in medical collections (the irony.)

It is standard for a lot of hospitals to send you to collections after so many days, some of these places aren't even collection agencies, they are just outside business offices. What you need to do is make sure that you call and set up a payment plan with the collection agency and make the payments every month. I have NEVER heard of a collection agency trying to sue and garnish wages when are making some kind of payment every month. Normally they only try to sue and garnish wages if you are making absolutely no payments for long periods of time.

We actually have quite a bit of medical debt incurred after we filed also. Our health insurance change to a high deductible plan. There are a few in collections because they got past the window where the hospital would keep the bill in-house. I just sit down once per month and make small payments to each of them. Hopefully is we ever get to keep a tax return, or when our Chapter 13 is finished, or if I get some kind of miracle bonus at work, we can get them paid off.

Stand firm. Some collection agencies will try to drain you for every penny every month. Make sure you make it clear to them that you absolutely cannot pay any more and can only offer them $XX per month.

[andy158]

Thanks papie. That is what I was looking for. We are not late or "missing" any payments and each one gets something every month. I just don't want to drain all our savings on these. We will continue sending what we can per month and go from there.

[oicu812]

well how much do you have in savings?are you saving it for a rainy day? well sir it is raining!
you know the concept if "dont want to drain my savings" has got me into alot more debt.just because I wanted to "feel" secure.
now after filing BK and having to look at my relationship with money and the problems it has caused me.In my own opinion now I "feel" secure with out any debt.
you can always refill you savings I.E. the money you would be sending to the debt.

first thing ask your Atty on what you should do.because my best thinking and advice got me into 100k debt and a BK.

[Flamingo]

Unfortunately, as explained above, any debt you incur after filing is your own debt. When something like this occurs, it's best to speak with one's attorney as to the situation. Everyone who files a Chapter 13 goes through having to worry about/pay debts incurred after filing but when they become excessive and can threaten your Plan and payments, contact your attorney.

[andy158]

well how much do you have in savings?are you saving it for a rainy day? well sir it is raining!
you know the concept if "dont want to drain my savings" has got me into alot more debt.just because I wanted to "feel" secure.
now after filing BK and having to look at my relationship with money and the problems it has caused me.In my own opinion now I "feel" secure with out any debt.
you can always refill you savings I.E. the money you would be sending to the debt.

first thing ask your Atty on what you should do.because my best thinking and advice got me into 100k debt and a BK.

Our emergency fund could only pay about 20% of the bills. I don't want to take all the savings money and pay toward the medical bills and then next month be without hot water because I can't afford to buy a new hot water heater. We have since contacted the billing companies again and described that we can only afford to pay $xx.xx amount per month for the next 2.5 years. 2 have agreed. Working on the rest. Brings back bad memmories of negotating with the cc's before bk.

[Pandora]

Unfortunately in the paperwork you sign when seeing any dr - it does specifically state in 99% of the cases - what their payment agreements are (i.e., 3 month max @ $25 per month minimum payment). They also usually tell you if you cannot afford to pay their minimum / timeframe allowed, you must fill out financial paperwork for their Financial Officer to look at, then they'll tell you what THEY think you can afford. All of which is complete and utter B.S.

HOWEVER... with that being said, there is always a silver lining

1. You do not have to fill out any financial paperwork, period.

2. If you know you can only afford XX per month, then thats what you send - never missing a month.

3. If they tell you they will not accept your XX per month, tell them to please put it in writing that they are refusing your payment (wont happen..trust me). They'll threaten you will "collections - your credit will be ruined, etc" Who cares... BK remember? LOL

4. Send them a letter (separately or with the next payment you send) covering the conversation you had with Mr/Ms. Smith of Billing Dept on XX day regarding what you could afford to pay. State this is a follow up and again, you are requesting in writing that they are refusing to accept your XX payment per month and to please respond w/in 10 days.

5. If they send you to collections and/or you end up in court - so be it. No judge is going to side with them, especially when you are in a BK first and foremost, and secondly - have made good faith payments the entire time.

I've been there too many times prior to filing Ch. 13 and have even had the judge throw out my ENTIRE bill due to the very thing you're experiencing. Was awesome to see them get reamed by the judge for a change.

hang in there..it'll be fine.

[andy158]

Thanks Pandora. We are going to continue making the $10 payments on each one and if we still owe after discharge I will have no problem paying in full. I explained that to them already, but until then they get what they get. I'm sure they are pretty busy dealing with others in the same boat.

[TheBajan]

This has been a helpful topic to me. We don't have any insurance and now that we are in BK13 I'm scared to death of what will happen if there is a major medical emergency. We are in our upper 40's and in decent health but still... we have no real way to plan for major medical expenses. Pandora.... your information in particular is helpful. Any other experiences with this situation? I would love to hear more of how others have handled it. Also, if anyone knows where or how we can get any sort of medical coverage I would be glad to hear about it.

[Pandora]

We don't have any insurance and now that we are in BK13 I'm scared to death of what will happen if there is a major medical emergency. We are in our upper 40's and in decent health but still... we have no real way to plan for major medical expenses. ...

Question for you: You're in a Ch. 13 but did not account for medical / insurance needs? Is there a particular reason why, if I may ask? Medial is an allowable expense, as is health insurance.

Somewhere (wayyyy back in my posts...) I have a post regarding low-cost health care, medications, where to seek assistance, etc. I'll try to find it and post it for you as well as anyone else that may need it.

[Pandora]

Here they are

http://www.bkforum.com/showthread.php?64195-Prescription-Drug-Savings

http://www.bkforum.com/showthread.php?61340-For-those-with-no-health-insurance

Also - check with your county health dept - many have cards for medical services as well as RX and OTC meds either free of charge or at a steeply discounted price.

[bling32]

This happened to me. Someone told me to request a hardship with the hospital. I had to fill forms about my income and expenses but they wrote off my entire $7,000 in charges. Then, I contacted the physician group that was billing me another $1900 and they wrote theirs off once I provided them with a copy of the letter where the hospital granted me a hardship and wrote off charges. Best wishes!