Ask Terry Questions Hospital Bills

Hospital Bills

By Terry Savage on January 19, 2020 | Credit/Debt

My niece asked me, “Where do I start paying for ten years of hospital/medical bills (around $100,000)?” She now has a good job and can afford to start paying them off.

Terry Says

This sounds like there was a terrible and expensive medical issue in the past, but at least now she can start to repay those bills. BUT, first I recommend she contact the providers and try to arrange a settlement. Even if the bills have gone to collection, there is still a possibility that she could get them to agree to perhaps a payment of 30 cents on the dollar, as part of a repayment program.

The outside possibility is bankruptcy, but she will need a specialist attorney to help her decide the impact of that course. It would wipe out her debts, but depending on the specifics it could also force her to give up most of her assets. And – it could impact her in future job searches, in the cost of auto insurance, and other ways since it stays on her credit report for 10 years.

One other possibility: Contact the National Foundation for Credit Counseling at 800-388-2227 BEFORE going to a bankruptcy attorney. The can give her trusted advice on how to proceed. Please write back and let me know what happens.

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