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Hospital bills and collections...


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Ok,

I need some advice for a friend here. Long story short. He was involved in a severe motorcycle accident about two months ago. Some kid ran a red light and t-boned my friend.

He was ok, but spent about a week in the hospital and had to have multiple surgeries to put titanium rods and screws in his arm. So my friend is out of work and doesn't know if he will ever be able to go back to work in his job as a mechanic.

The kid who hit him only had $25k worth of insurance. So he recieved that and another $50k from his insurance. Now his total hospital bills are well over $75k.

The kid who hit him is 19 and has no property or assetts. So every lawyer he checked with, said there is no point suing. You can't get water from a turnip.

Now my friend has been out of work for two months. He doesn't know if and or when, he can go back to turning wrenches. He may have to look for a new career. He took the insurance money and paid off his car, the motorcycle, and all his other bills. He also has had to pay rent, electric, and buy food and daily expences out of his insurance money. So it's starting to trickle down.

From talking to him, it sounds like he is going to blow off paying the hospital bills. I understand his frustration, since the accident wasn't his fault. He feels shafted by the system.

I'm worried that if he doesn't pay the hospital bills, they will show up on his credit report and really screw him down the road. He said his lawyer told him medical collections couldn't show up on his credit report. Is there any truth to that?

He did try and contact the hospital and they wanted to set up payments of $800 a month for 8 years. There is no way he can afford that. He tried explaining to them that he is still out of work and doesn't know when he will be working again. So he's basically saying screw it. So what are his options? If he blows off the medical bills will it hit collections? Can they sue for the $$$$ owed? Will it go against his credit report? Thanks in advance for any advice I can give him.

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hospitals can not report on your CRA. they will attempt to collect the debt on average 6 months then write off loss sent to CA...the CA can and will report on your CRA.

We paid 14k in med collections before being approved for mortgage in 1999 9 before i foudn this website of course i would have never paid full price ) anyhow my hubby had a car accident ict 2005--now dealing with med collections that we thought were paid by insurance- never received bills for them or any letter from CA- i found out from pulling his report 2 months ago. hubby hasnt worked since accident and is still fighting for social security disablility. so i know how your friend feels- at least hes not married with two kids.. if he plans on buying a house all bills on reports will have to be paid before settlement. Im sending in 20$ a month on some bills- if he makes an attempt i think they cant write off- not for sure though---either way its better to deal with now as hard as it is....good luck to him

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Sue the 19 yr old boy...who knows...one day he might actually be a productive member of society and he will take care of the problem.

The medical will not go away. They can and they will destroy his credit. It also sounds like these bills are gonna be pretty high...........they can sue your friend and most likely will.

they will attempt to collect the debt on average 6 months
Not mine. I think they turn it over to collections before they ever get a rejection/acceptance letter/check from my insurance.
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Your friend needs to consult with a different personal injury attorney if he has not done so already. Keep looking until he locates one who does not blow him off.

The only problem with this is that most blood sucking attorneys will not take a case on contingency when they know that the insurance is already maxed out. Most are going to want a retainer which is next to impossible to due when you can't even feed yourself. It really REALLY sucks. For those reading this thread, please think about increasing your insurance limits from the state minimums. It doesn't cost that much more and everyone should be insured for at least 100k.

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I second that statement. Your friend would be pretty idiotic for not doing so. ;)

He has contacted and talked to at least 10, if not more, attorneys. All of them say the same thing. The kid's insurance is maxed out and there is pretty much no hope of getting anything from the kid himself. The kid is 19 and lives at home. The only thing the kid owned was the car that was destroyed when he t-boned my friend.

He's had attorneys and paralegals come out to his house and interview him. He's spoken to numerous people on the phone. It's all the same thing. You can't get water from a turnip. So why even fight the fight.

Attorney's aren't going to take on a case they have no chance of winning or being paid on. So he is screwed as far as that goes.

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hospitals can not report on your CRA. they will attempt to collect the debt on average 6 months then write off loss sent to CA...the CA can and will report on your CRA.

So thats the catch. It sounds like the attorney was right, that hospitals can't report to CRA's. However they left out the part that the hospital will sell the debt to a CA, who can report it. Interesting. I definatly need to let him know about that.

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He has contacted and talked to at least 10, if not more, attorneys. All of them say the same thing. The kid's insurance is maxed out and there is pretty much no hope of getting anything from the kid himself. The kid is 19 and lives at home. The only thing the kid owned was the car that was destroyed when he t-boned my friend.

He's had attorneys and paralegals come out to his house and interview him. He's spoken to numerous people on the phone. It's all the same thing. You can't get water from a turnip. So why even fight the fight.

Attorney's aren't going to take on a case they have no chance of winning or being paid on. So he is screwed as far as that goes.

This situation isn't necessarily about getting water from a turnip - it's more about logistics. I used to work as a paralegal in a PI attorney's office, so I've seen these situations...

Before your friend accepted any type of pay-out from either insurance company, he should've been in contact with an attorney. The problem with accepting both payouts (totaling $75k) is that the insurance companies automatically assume that a portion of that money is going to pay for the medical bills incurred due to the accident. Although your friend is out of work temporarily due to his injuries, and although he needed to pay his other bills in order to continue to keep his head above water, the insurance companies aren't going to budge knowing that he didn't use the funds to pay his medical bills.

I'm assuming that both payouts were from the 19-year old and your friend's automobile insurance, correct? Did your friend have health insurance through his employer at the time of the accident? If so, has the insurance company paid out on any of the bills? Or are these medical bills 100% your friend's responsibility due to not having medical insurance?

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"hospitals can not report on your CRA..."

Hospitals CAN report. Some don't, but there is no legal reason why they can't, just like utility service providers. And certainly, after a hospital bill has been turned over to collections, it will most likely get reported.

"...if he plans on buying a house all bills on report will have to be paid before settlement..."

This statement is not necessarily true either. Many lenders completely ignore medical bills and don't require their payment prior to granting a loan. Other lenders make this an absolute requirement. There is no definite rule. The OP's friend should consult with a mortgage broker or banker when he is ready to purchase.

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Before your friend accepted any type of pay-out from either insurance company, he should've been in contact with an attorney. The problem with accepting both payouts (totaling $75k) is that the insurance companies automatically assume that a portion of that money is going to pay for the medical bills incurred due to the accident. Although your friend is out of work temporarily due to his injuries, and although he needed to pay his other bills in order to continue to keep his head above water, the insurance companies aren't going to budge knowing that he didn't use the funds to pay his medical bills.

I'm assuming that both payouts were from the 19-year old and your friend's automobile insurance, correct? Did your friend have health insurance through his employer at the time of the accident? If so, has the insurance company paid out on any of the bills? Or are these medical bills 100% your friend's responsibility due to not having medical insurance?

From my understanding, I could be mistaken on this, he did consult with quite a few attorneys before taking the insurance settlement. The attorneys told him that in FL, if the kids insurance maxed out, then that was all they could get.

He wasn't originally wanting to use his insurance as well, since his premiums may go up. But after finding out that the kids insurance topped out at $25k, he didn't have much choice. The $25k came from the kids insurance and the $50k came from his.

He works for his dad's shop and they don't provide medical insurance. He did have full coverage auto & motorcycle insurance though.

If he had used all the money he got for the medical bills, it still wouldn't have paid them 100%. Plus then he still has other bills, like rent, electric, car payment, credit cards, ect. So he thought it best to pay off everything he could, to minimize his monthly expenses while he is out of work.

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From my understanding, I could be mistaken on this, he did consult with quite a few attorneys before taking the insurance settlement. The attorneys told him that in FL, if the kids insurance maxed out, then that was all they could get.

I can't help but wonder why anyone would opt for more than minimum insurance coverage if that's the case. He wasn't by any chance talking to the insurance company's attorney, was he?

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From my understanding, I could be mistaken on this, he did consult with quite a few attorneys before taking the insurance settlement. The attorneys told him that in FL, if the kids insurance maxed out, then that was all they could get.

I can't help but wonder why anyone would opt for more than minimum insurance coverage if that's the case. He wasn't by any chance talking to the insurance company's attorney, was he?

Hehehehe.. i have a feeling that's the attorneys way off saying, "we have no guarantee of being paid so look elsewhere".

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Now are you sure that only the kid's name was on that title? I mean if his parent's name was on it or anyone else, and at that age it usually is, you can ALSO sue the parents. They would also be held liable for the damages that were caused. Also, by suing the kid, this gets documented with the DMV and usually that means losing his license till the debt gets satisfied.

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Now are you sure that only the kid's name was on that title? I mean if his parent's name was on it or anyone else, and at that age it usually is, you can ALSO sue the parents. They would also be held liable for the damages that were caused. Also, by suing the kid, this gets documented with the DMV and usually that means losing his license till the debt gets satisfied.

I figured the same thing, that my friend could go after the parents if that was the case. However, the car is in the kids name only and the insurance is in the kids name only. So my friend has no other recourse. The kid is only 19, so i'm sure thats why he had the minimum insurance required in FL.

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