Expert: Frank Brewster - 7/19/2006

Question
this is a emergency room hospital bill.i pay 100.00 dollars a month. there were two visits so i pay a total of 200.00 a month.i have no insurance.this is all i can pay regardless to who receives it.they say its not enough.-----------------------

Followup To

Question -
if i have been faithfully paying a debt can i be turned into collections?

Answer -
Debra,

Not much information here but I will answer as best I can.  Yes.  Here’s the real big picture to credit and collections.  The money you owe to a creditor is valuable for more than just the interest.  The creditor uses it as collateral to borrow more money.  If the account goes into default there are times that there is an obligation to turn it over to collections because now the debt can no longer be considered an asset, it is now a liability.  Most banks or credit card companies are publicly traded and there is an obligation to protect the stock holder and report true information as to assets and liabilities.  Stock prices rise and fall daily based upon these two things.  When the account goes past due and gets written off, that liability is taken off the bottom line as a loss.

I presume that while making payments, you were not paying the minimum amount due.  Thus putting the account further and further past due each month.  I hope this answered your question.


Answer
Debra,

The answer is the same, they can turn it over to a collection agency who may very well wind up taking $100.00 a month any way.  The debt is aging and eventually they will charge it off.  You may consider calling the billing office and offer to show them your financial report to justify the amount you want to pay.  Sometime they write these things off to charity but hositials can be owned by large pubicly traded compnaies who are obligated to watch the bottom line.  There is nothing to keep them from turning your account over.