Expert: Chris Ebert - 5/1/2009

Question
In February of last year I went in to the ER. Later in the year (October) I was contacted by a collection agency for the bill. I was making $30 payments every month, but was unable to make my payment in April. Now the collection agency has called and stated that there will be a lawsuit for $224.33, a small amount compared to the full bill. I acknowledge already that I owed this, and it was out of my control that a payment could not be made. I do not have a job and I am relying on other people to keep me going right now. I really just want to know my rights and what I can do in defense against this. Honestly, if I had the money, this would be paid. If my room mates could help, it would be paid.

Answer
So far from what you have said you have not been sued. The collector is threatening a lawsuit.

It is illegal for a debt collector to threaten to sue a debtor if that creditor does not normally due so. On a debt this small it is usually unlikely that they would want to sue. Filing and serving costs would be $85 plus dollars even in the cheapest courts.

If you are in a situation that you can not pay the debt collector then try another collector at the agency to see if you can get a different payment plan worked out.

In this situation, you may be better served to go back to the doctor or hospital billing department and let them know that the debt collector they hired is threatening to sue you. Ask the billing department if the following options are available to you:

1) Medicare rates or cash discounts for your procedures. Most medical billing departments do give non insured clients medicare rates or cash discounts. This will lower your over all bill and allow you to pay it off sooner.
2) A payment plan with them. This removes the collection agency from the mix.
3) Ask them if they can help you file a Paupers or Indigent Affidavit. This allows the hospital to go to a medical charity to get the money to cover your bills or write it off without effecting your credit.