Expert: Ray A Miller - 2/12/2011

Question
I live in Texas.  My employer sold to a corporation and everyone lost all their benefits, including medical insurance.  I had to have emergency surgery and was too late to get COBRA (by 4 days) and had no insurance.  The bills are around $60,000.00 for 1 ER visit and 2 1/2 hours in Day surgery.  I make 30,000 a year.  This seems VERY overwhelming and I am so devistated by this debt I cannot think straight!  I went to the hospital and followed the instructions given me by financial counselling to see if I qualified for assistance.  Surgery date was 11/20/10 and the bills are now over 90 days.  I have been making small payments to 6 different creditors for these bills while the financial assistance case is pending.  One of them charges a fee for each bill sent, and they say my payment is not enough to qualify for their payment program so they are going to get a "judgement", whatever that is...against me.  I have called each of them to explain that I had no insurance and why but this still doesnt make a difference.  I (had) wonderful credit and never wrote a bad check or a debt go unpaid before.  I am 53 years old.  I feel like the rest of my life I am going to be harrassed with these bills that I cannot possibly  pay.   If I am making payments, how can anyone get a judgement against me?  I have been told by numerous persons that as long as I make regular payments, they cannot take my home or car (both are not worth much).  My house is old and broken down and I drive a 1997 chevy that keeps me in debt fixing it.  What can I do?

Answer
You need to pressure the people that are making the decision on your medical assistance form for a determination.  They are key to this problem for now.  Until they do see what the minimum payment on each bill would be and try to pay it.  Offer them a budget of your finances to show how much you honestly can pay.  As I said, a decision on your medical assistance form is very important to you right now.

As far as them getting a judgment, they can.  A judgment will prevent you from selling you real estate until it has been paid off.  It could also allow them to garnish your paycheck.  I wish I had better news for you.  Really push these financial aid people for an answer.

The next step is one that I never recommend; bankruptcy.

I hope you find this is some way helpful.