Expert: Michael Brotherton - 6/9/2007

Question
QUESTION: I've just recently been contacted by a collection agency about some medical bills from back in 2003. I haven't heard anything about them since sometime in 2003 (my mom was paying the hospital, i was just a sophomore in college at the time of the last bill). Mom was sending a payment every month, and they turned it over to collections, & she continued to just send a payment to the hospital, until she quit getting bills. With no bills, she didn't send money because she has to have something to show where the money was supposed to go. We haven't heard anything about this until just this past month, after my husband and I bought our 1st house. I live in AR, and I've seen that the statute of limitations in AR is 2 years, and I sent a validation letter to the collection agency via certified mail the other day. What I need to know is what else I need to do to try to either get rid of this or something. My husband and I don't make a lot of money, and can't really afford another bill, especially when I don't even know how much of this is really owed. Thanks.

ANSWER: Before I can answer your question I need to know if you signed a financial responsibility form at the hospital for your mom? Whose bill is this? Yours or your moms?

You may send a cease and desist letter advising them to cease all phone contact. If the statute of limitations is past you shouldn't have much to worry about. I will wait for your response and let you know what I think.

Thanks

---------- FOLLOW-UP ----------

QUESTION: It's my bill, I was the one who had surgery, so it's all in my name. My mom was just the one taking care of payments, because I was still only 19 and didn't have a job, just school.  

Answer
The statute of limitations in Texas is 4 years. If it has been more than 4 years you should be safe unless they have a judgment. If they sue you and get a judgment before the SOL expires they can extend that limitation. However, garnishments aren't allowed in TX and they are limited in what they can do. If the SOL is not up and you are forced to pay it contact them and make a minimum payment proposal. Make sure you put your budget to paper and that you can afford the payment. If you have limited assets and low income you may be considered "judgment proof". This means you have no attachable assets and cannot pay the bill. If you own your home or other assets they could potentially attach a lien against the property. This doesn't mean they can necessarily take your home. If it is a small balance you should be safe. If you have equity and the balance is substantial you may have a problem. I would need to do a financial assessment to determine if it is collectable or not. Let me know if you need help with this.

Good luck.