Found information on deceased debtor collections

[Seadragon]

I was perusing a popular Accounts Receivable Management online magazine for collections industry stats and found the following informative article:

http://www.insidearm.com/go/arm-analysis/improving-deceased-account-collections-performance-without-sacrificing-client-brands

I see that it would be a good idea for proper estate planning to address these issues. I would recommend that everyone should have a good estate plan.

It seems also telling that CA's and JDB would also try to insert themselves into the probate situation. If your are a trustee or executor for an estate you should probably consult an attorney about the issues that can arise from debt collection activities on deceased debtor debts and make a plan to address those issues. I see this as the next big step for the debt collections industry as medical and credit card debt are increasing among our seniors due to the limited retirement funds available to them.

I find it horribly ironic that seniors retirement investments are used to fund the purchase of the medical and credit card debts, and that it will come full circle after they are deceased.

death,taxes, and coming soon collections.

What protections will there be for account inaccuracies, invalid accounts in a probate situation when an executor is grieving and has to fight a legal battle on accounts that may not even be valid. what Process will there be for a trustee or executor to clear up CR inaccuracies.

I see this as a big issue that hopefully people on this board with knowledge can weigh in on.

[Flyingifr]

You bring up a valid point. In many jurisdictions Executors are required to place classified ads called "Notice To Creditor" and this ad starts a clock. The clock can be as few as 60 days and as many as 120 days. If the creditor's claim on the estate is not filed in the required time it can be forever barred. I am surprised the article said nothing of this.

[Seadragon]

I know I have already set up my estate plan. The thing I worry about most is if the executor is in another state how will they know about the alleged debts. also we all know medical bills sometimes get padded especially when terminal patients are involved.

I think congress needs to get invovled. a new statute to address medical billing practices comparable to FDCPA, or in the alternative new federal probate laws.

The article I read makes the assertion that it is better to just go with the legal part because contact with the deceased members family will make legal retribution more likely.

it also shows a possible defense strategy. If the OC is possibly brought into the spotlight ie: news reports, blogs, radio talk shows, and the like I think the exposure will increase the risk analyses for the alleged debt.

What are some of the other things that can be done such as DV and such. I think due to HIPAA the family would have to get permission from the deceased prior to them dying for the medical records disclosure to give them time to dispute the medical debts in sufficient time to stop probate actions.

Edited November 1, 2010 by Seadragon
spelling

[Flyingifr]

The ad has to be placed in a newspaper where the deceased lived. As far as HIPPA is concerned, the decedent's Executor "steps into the shoes" of the decedent for HIPPA purposes and has all the HIPPA rights the decedent had.