How to resolve medical bill collections

Overwhelmed and underpaid, and to top it off, he has to deal with collecting medical bills. No one wants to deal with collection departments, however if you know how to negotiate, you may be able to resolve your unpaid hospital bills.

The collector’s goal is to recover the money owed or reach a payment agreement. If your goal is to do the same, here are some helpful steps:

• Be courteous and let the collector know that you want to pay the bills, however, you do not have the means to pay the balance of the medical bills now.
• Provide all information required to show financial hardship to qualify for a payment plan on your unpaid hospital bills.
• Make a reasonable monthly offer for the payment plan; however, always provide an amount less than you can afford. The collector will ask you to pay more than the number you provide. Doing it this way gives you an affordable quantity and gives the collector what he wants.
• If possible, set up postdated payments that span three months at a time. This avoids monthly calls from the collector.
• If you have about 40% of the money you owe in total, make a settlement offer to the collector. Medical bill collections will settle your debt by paying a lump sum payment, less than the amount owed. If you have the means to do so, follow these golden rules:
• Get the settlement offer in writing. Must include balance, accepted settlement amount, and payment date.
• After you pay the settlement amount, follow up with the collector and get a settlement payment letter showing that you followed the terms of the settlement. This is proof that you paid off the debt for a lesser amount, if future calls continue to try to collect the unpaid portion.

In the event that you are unable to make monthly payments or settle your medical bill collections, you may want to consult with a bankruptcy attorney for advice on a permanent resolution.