Two Questions (Medical and Banking)

[Bankruptcy20]

1. How to Stop Medical Bills Being Sent Post-Filing?

I have some medical bills as part of my creditor matrix. After filing, all the rest of my creditors stopped calling, sending me letters automatically.... except the hospital which sends me about 3-4 a week. I called the hospital today and explained I had filed Chapter 7 a long time ago, that they were part of the creditor mailing, etc. and they had to stop billing me.

A relatively nice woman in Accounting said yes, my case number is on their file, but they have this old bureaucratic system and it is impossible for them to stop their system. Apparently, after so many months of mailings, it will then go to a collection agency. She said once it hits that point, those agencies will know how to end the collection process.

OK, my procedure was before I filed, I then filed, and I tried explaining the automatic stay, etc. But this woman, who seemed pretty knowledgeable in their billing department, effectively said, yeah yeah yeah, but our system can't handle that.

Should I care? This seems silly for all the wasted paper they will generate and then I have to deal with an agency. But, is there really any downside to this? Maybe something (like this medical bill) being reported to my credit report that could be avoided if this hospital just recorded it correctly now?

2. Re-Doing Business with Citibank

I used to enjoy a good banking relationship with Citibank (checking, saving, CD, etc). As I had a Citibank credit card, with this forum's advice and my lawyers, I closed those accounts a while ago and moved what little of my funds remained to another account.

Well, I filed Chapter 7, I had my 341, and I have a No Asset Report from the panel trustee already, but I have not yet closed (I'm in the 60 day club).

Do you all think it is safe now to reopen an account at Citibank? Or, as my wife still has her sole accounts there (I filed individually), do you think I can add my name to her account and make it joint?

Do I need to wait until closing of my Chapter 7, or am I safe from Citibank trying to poach any of those post-filing dollars to satisfy their pre-filing credit card balance?

Thanks

[Bankruptcy20]

I get the sense I should have split this into two separate threads, lol...

[backtoschool]

Medical answer:

These medical billing systems are ancient mainframes with nobody left alive to program them to stop spewing paper. I would not worry about the bills coming. Eventually they will find the one living programmer who hasn't retired and have him stop the flow.


Citibank answer:

The automatic stay prevents Citi from taking any money in a new account that you open now. I am not sure why you want to bank with them specifically, but if they are the most convenient bank, then at this point you should be fine to open an account. Just a word of advice re new credit: Citi has a very long memory and keeps an internal black list of people who bk on them, so don't expect any citi credit cards any time soon.

[Bankruptcy20]

Thank you

[StartingOver08]

OP, I'm sure that BTS is right. But, I believe they will go to the effort to find that one person that can turn off the billing if you bring the hospital to task for this by bringing a suit. I know it is a little extra work, but what the accounting dept is saying to you is they don't have to follow the rules because they have an old billing system! That's another version of "the computer did it".

The problem of letting it continue is eventually it will end up on your credit report as past due after bankruptcy and that is a problem for you. Any late pays after a BK take an extra hard hit to your credit/credit score. Because if they can not turn off the billing, then they probably automatically report too. My opinion is, send them something in writing one last time, then sue them for violations of the automatic stay if they won't stop billing you.

You are the person to safeguard your own information. Why should you have to put up with their sloppiness/inattention to your BK filing? This is the case where the hospital obviously has received payment after a consumer has filed BK by continuing to bill and ignore the automatic stay. So now they continue this practice because it obviously works for them.

[Bankruptcy20]

Any late pays after a BK take an extra hard hit to your credit/credit score. Because if they can not turn off the billing, then they probably automatically report too.

Thank you, StartingOver.

On this part of your response, I incurred the medical expenses BEFORE the filing, yet they are obviously still billing me after the filing.

Do you think I will still take a credit score hit if they report a collection action for an expense from BEFORE the BK filing? It seems a bit definitional to me, they should not be reporting it as it is covered by the stay, so if they do, the credit agencies may think the expense was for AFTER the filing.

Sigh. On the lawsuit, that seems like a big process, no?

Thanks.

[Bankruptcy20]

OP, I'm sure that BTS is right. But, I believe they will go to the effort to find that one person that can turn off the billing if you bring the hospital to task for this by bringing a suit.

After BTS's post, I was just going to let it go. Then you posted your response and I thought it warranted a call to my attorney, who had apoplexy. He just wanted an address to write a stern letter to the hospital.

So, I called the hospital to ask for the address for my attorney to write the letter to. Then, all of a sudden, a "Director" got on the phone, and lo and behold, miraculously, they said, yes, the letter from the Courts was in their systems and the bills would stop.

And, the credit agencies would not get involved.

So, StartingOver, you were 100% correct. Thank you for posting. Lesson learned: do not ever let, whether a hospital or other, pretend their systems are too old, whatever. The law is the law; automatic stay is the automatic stay.

[OhioFiler]

After BTS's post, I was just going to let it go. Then you posted your response and I thought it warranted a call to my attorney, who had apoplexy. He just wanted an address to write a stern letter to the hospital.

So, I called the hospital to ask for the address for my attorney to write the letter to. Then, all of a sudden, a "Director" got on the phone, and lo and behold, miraculously, they said, yes, the letter from the Courts was in their systems and the bills would stop.

And, the credit agencies would not get involved.

So, StartingOver, you were 100% correct. Thank you for posting. Lesson learned: do not ever let, whether a hospital or other, pretend their systems are too old, whatever. The law is the law; automatic stay is the automatic stay.

They must have found that old COBOL programmer backtoschool is so fond of!

[backtoschool]

After BTS's post, I was just going to let it go. Then you posted your response and I thought it warranted a call to my attorney, who had apoplexy. He just wanted an address to write a stern letter to the hospital.

So, I called the hospital to ask for the address for my attorney to write the letter to. Then, all of a sudden, a "Director" got on the phone, and lo and behold, miraculously, they said, yes, the letter from the Courts was in their systems and the bills would stop.

And, the credit agencies would not get involved.

So, StartingOver, you were 100% correct. Thank you for posting. Lesson learned: do not ever let, whether a hospital or other, pretend their systems are too old, whatever. The law is the law; automatic stay is the automatic stay.

Good for you Bankruptcy20!

I am glad that the hospital was able to rouse up one of the old mainframe programmers to stop the paper spewing.

[whipster1]

Good job...always let your attorney know about ANY collection efforts after filing, there is MONEY in it for both of you if they go too far.

My attorney says they get one strike, the attorney sends a certified notice of the BK...then sanctions are filed if any more collection letters/calls are received. Of course my attorney will have worked diligently and must charge accordingly, so his fees are added to my damages of sleepless worry-filled nights. 1500-2500 is normal for him in sanction actions. All from some frigging letters. He really likes it when a Big Boy like Chase or B of A sends letters/calls one of his clients after filing because they settle in a heartbeat.