Unaffordable Bills

Dealing with Unaffordable Bills

I had emergency surgery and incurred $31,000 in hospital bills. The hospital wants me to pay them $500 monthly.

I can't afford to pay them $500/month. I was planning on just sending them what I can afford.

My question is: do hospital bills go into your credit report?

Thanks in advance for your help.

Elizabeth

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Yes, unfortunately hospital bills do get reported to the credit bureaus and, if not paid, affect your credit score negatively. As a matter of fact, many consumer credit experts feel that medical bills are one of the primary reasons most people file for bankruptcy.

Try to work out a more favorable repayment schedule with the hospital. If you can’t manage to do it on your own, go to a lawyer who specializes in consumer debt – get names from your local bar association’s Lawyer Referral Service – or contact your local credit counseling service – they should be listed in the yellow pages – and have them negotiate for you.

Don't just go off and pay whatever you want. The hospital will report you as being in arrears and may even send your bill to a collection agency. Get a written agreement from the hospital to whatever new terms you work out and stick to it.

If you feel that there will be no way you could possibly repay the bill, consider bankruptcy, but only as your last resort.

A qualified bankruptcy attorney or a credit counselor could help you make the right decision. Act fast however. The new bankruptcy law goes into effect October 17th. It will be harder and more expensive to file for a total discharge after that date. So if bankruptcy is your only way out, file before the law changes.

I wish you luck.

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