I Went to the Hospital and Was Sent to Collections

Question:

Dear Steve,

I was hospitalized a couple times and had insurance but they still sent me to collections, so, I have 3 open accounts with Sequoia Financial services. I’m wondering the best way to get it off my credit history as I’m barely getting stable and have a job that doesn’t pay well.

What do I do? I also have a couple accounts open for a couple hundred bucks. Really have no idea about this stuff.

Fletcher

Answer:

Dear Fletcher,

Just because you have insurance does not mean you don’t still have some personal responsibility for deductibles and other charges. There are two possibilities regarding the resulting medical bills. The first is they are charges your insurance did not cover. You should have received an EOB or Explanation of Benefits after your insurance company processed the claim. The second possibility is the bills were not submitted to your insurance company. Call your insurance company and try to get some clarification on how your hospital stay was dealt with.

If you can’t afford to pay the bills or offer a partial payment to resolve the entire debt then you have two major choices. The first is you can just ignore the bills and your credit report. If you can’t afford to take any action, taking no action with intent is a plan. This will leave you in collections but you can’t afford what you can’t afford.

The second option is to file bankruptcy and clear the decks of all of your past due bills. You did not indicate how large the medical bills were from your hospital stay. However, I don’t feel like you should rush towards bankruptcy since you also have an income issue as well. There may be more bills coming as a result of underearning for your needs.

If you want to talk to someone to come up with a specific plan, think about contacting Michael Bovee at Consumer Recovery Network.

Steve Rhode
Get Out of Debt GuyTwitter, G+, Facebook

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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.