User:EdwardsonSumner955

Question: I recently had an accident and broke my arm in two places. When I was discharged from the hospital, I found that my unpaid hospital bills totaled over $11,000. I have no insurance and have no employment at the moment so I couldn't possibly make payments. Now, collectors are knocking on my door and calling me on the phone to pay up or they will destroy my credit score. What should I do?

Tom of Detroit, MA

The fact that your unpaid hospital bills have already been sent to a debt collection agency means you've squandered the chance of getting it reduced to a much more affordable level. It's much more difficult to negotiate with debt collection agencies than it is with hospitals and doctors because they are paid by commissions or on retainer. Company success is also gauged by its capacity to collect the debts so this is very serious business. More than anything else, you will be made as an example.

The company representatives are not joking when they say you could destroy your credit. One call to the credit bureau and your score is done. Medical bills are actually one of the more common reasons for bad credit histories. It will stay on your record for seven years. (As an aside, if you really have no job at the moment, you should apply for unemployment insurance benefits just to tide you over the difficult times.) Anyway, if you have no money coming in a seven-year drought would be no problem and you can even make use of the time to save money rather than apply for credit.

What you want to do now is to work with the collection agency. You don't want to be viewed as uncooperative or unreasonable because that will only worsen your situation. Explain your side and tell them that you intend to pay your debts but your current circumstances wouldn't allow it. If you have assets that you can probably offer as a collateral in the meantime then do it.

The worst thing that can happen is the debt collection agency will sue you over the unpaid hospital bills and the judge will order a realistic payment term in line with you capacity to pay. Again, the side effect would be your credit history but that's the least of your problems. 横浜市 病院検索