Nicole42

Goodwill Letter Help

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In August 2018 I was diagnosed with stage 3b high-grade sarcoma at 41 years old & ultimately was approved for SSDI of which I'll be on for awhile. I have had a rough few years as the only income for my household & 2 kids in college. I was on a machine for over 9 months & had homehealth care nurses 3x a week for over a year. 9 months after I was 1st diagnosed I had a major reoccurrence & I have had to repeat the entire treatment process again.

During treatment I had a 3 month lapse in my medical insurance due to my employer back canceling my policy. They didn't contact insurer to cancel until mid November 2018 & employer requested cancellation date for September 2018 (which covered tons of medical treatments) & insurer complied & refused to pay anymore bills dated after Sept & even requested reimbursement of all the bill's paid back to the cancellation date. It was legal I guess since employer did NOT have to comply with the Federal Leave Laws (due to size) & I hadn't been able to return to work since my diagnosis in August 2018.

Also in November 2018 due to no income I was unable to pay my Chase Auto car payment my vehicle was repossessed & sold leaving a deficiency of about $3,700 & several late payments before it was repossessed. I didn't tell my car insurance company about repossession & they also are trying to collect on non-payment of insurance after the repossession took place & I didn't even have the vehicle.  When all this happened I was unable to walk, was hooked to a machine, was on homehealthcare & unable to mentally or physically deal with these financial issues. I'm just now looking into the damage done & it seems pretty severe.

I can't pay someone to help me get my credit situation cleared up but wanted to know if someone could help me draft a Goodwill letter for my specific situation to send to Chase Auto (who & where to send), auto insurer & several medical bill's some of which are in collections.

Also, when sending these letters should I include some kind of medical proof &/or my SSDI approval so the creditors realizie it's not some kind of exaggerated hoax & my claim is all true.

I live in Oklahoma in case that info is needed.

Thanks in advance for any & all help provided.

Nicole

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46 minutes ago, Nicole42 said:

I can't pay someone to help me get my credit situation cleared up but wanted to know if someone could help me draft a Goodwill letter for my specific situation to send to Chase Auto (who & where to send), auto insurer & several medical bill's some of which are in collections.

The statute of limitation for a lawsuit for debt collection in OK is 5 years.  I would not try credit repair with CHASE because they could counter sue for the deficiency balance.  Wait out the 5 years post repossession to be safe.  I would look in to settling the medical collections given your fragile medical situation.  You may need those providers again and you don't want to be denied care because of owing a balance.  It is legal for a provider to refuse to continue care with an outstanding balance.  If you did not have medical insurance for some or all of them it is possible to send a good will letter offering to settle.  You should not use a cut and paste letter from the internet as they are riddled with errors and typically only get a denial.  A carefully worded letter with a short explanation of your circumstances and desire to settle now that things are more stable is enough.  

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On 2/28/2021 at 12:15 PM, Clydesmom said:

The statute of limitation for a lawsuit for debt collection in OK is 5 years.  I would not try credit repair with CHASE because they could counter sue for the deficiency balance.  Wait out the 5 years post repossession to be safe.  I would look in to settling the medical collections given your fragile medical situation.  You may need those providers again and you don't want to be denied care because of owing a balance.  It is legal for a provider to refuse to continue care with an outstanding balance

Thank you for your response. However, I don't think your advice applies in my situation, but I've been wrong before.

You told me I should wait for the statue of limitations (5 years) to pass before I address the Chase Auto issue because Chase could counter sue me. However, I am what some call "Judgment Proof". My only income is my SSDI for the cancer & I do not own a home or vehicle (since the repossession by Chase). Wouldn't that eliminate a possible counter suit?

As far as the medical bills & the providers being able to refuse service due to my outstanding balance. The few months that my insurer decided not to cover was in the 1st few months after diagnosis in 2018. I want to say that my main place of care (specialist, hospital, surgery, pathology & scans) whom the largest portion is owed to during those 2-3 months have continued to provide over $100,000 (which was all paid) in care to me after the default on the bills during those early months. They provided my specialist with over 40+ visits, woundcare services, ER visit, radical surgery, week long hospital stay, (5) CT's, (3) MRI's & (3) biopsies in addition to the laboratory & pathology. Those bills have been with a collection company for sometime now. I think if they planned on rejecting me service duecto my outstanding balance they wouldn't of allowed all my other care afterwards, any thoughts?

Also, I noticed that going to a hospital to have what I consider (1) simple procedure ends up turning into multiple bills.

Example....... I go to the hospital for a biopsy procedure. I think most consumers think the hospital will bill me once for all cost for the procedure (including outside costs) & then the hospital will forward payment to the others once they have received my payment for the single procedure. Instead, I discovered that I get billed separately for everything, the doctor whom performed the biopsy (although he is a employee of the hospital). Same with the anacesiologist, pathologist & radiology department. I also received a bill from the outside labatory for the hospital whom prepared the tissue slides. Most people don't realize this because the bills go directly to the medical insurer. I only discovered this due to the insurer rejecting the bills. This can cause a massive credit collection issue for someone like me. A single biopsy procedure whom I expect only a single bill from turns into (6) seperate bills & (6) separate collections if unpaid. This is a dramatic issue for people with serious medical bills that are unpaid. How can this issue be better addressed with CRA or can they.

I'm starting to believe that filing bankruptcy maybe a better option at this point, any thoughts? It's sad because in reality the debt doesn't total more then $20,000 but it's from so many companies & dealing with each individually seems like an emotional drain I'm not prepared for.  I also would assume some would accept my Goodwill offer & some wouldn't thus still ruining my credit. 

Is it common for people whom are considered "judgement proof" to file for bankruptcy? How would I rebuild my credit after bankruptcy when I'm on SSDI & highly unlikely to be issued credit lines because the lenders can't recover from me if unpaid?

So are there (2) types of goodwill letters. One requesting forgiveness after a payment & the other requesting forgiveness of the entire debt?

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1 hour ago, Nicole42 said:

However, I am what some call "Judgment Proof". My only income is my SSDI for the cancer & I do not own a home or vehicle (since the repossession by Chase). Wouldn't that eliminate a possible counter suit?

No, it would not eliminate a counter suit.  "Judgement proof" is the colloquial term but in reality what you are right now is collection proof.  You are exempt from them levying your bank account.  As long as you do not co-mingle other funds and only keep no more than 2 months SSDI in the account.  That does NOT mean you might now come in to money down the road or need credit.  While some creditors will close out accounts and stop collection for those on disability there are some who do not care and will sue and get a judgment anyway.  Engaging in credit repair often leads creditors to conclude you need or want credit and therefore they become more aggressive.

1 hour ago, Nicole42 said:

I think if they planned on rejecting me service duecto my outstanding balance they wouldn't of allowed all my other care afterwards, any thoughts?

What they did back the and what they do going forward can be two different things.  Given the covid crazy that has shredded many industries I would not assume they will continue to provide care with an outstanding balance continuing to grow.

1 hour ago, Nicole42 said:

How can this issue be better addressed with CRA or can they.

The issue has nothing to do with the CRA.  The reality is you are correct that most people do not understand the process.  However, every patient is given a financial guarantee to sign which 99% NEVER read.  In that paperwork it does clearly state that often a procedure such as a biopsy or surgery will generate multiple bills with each service billing individually.  It is one reason that you should never sign a financial document without reading it first.

1 hour ago, Nicole42 said:

I'm starting to believe that filing bankruptcy maybe a better option at this point, any thoughts?

Since most BK attorneys will do a consult for free I think it is not a bad idea to at least consult a couple.  Doing the consult in no way obligates you to file but they can give an honest assessment of your situation and whether filing is a good option or your best one.

1 hour ago, Nicole42 said:

Is it common for people whom are considered "judgement proof" to file for bankruptcy?

I don't know if it is common but I am sure it does happen.

1 hour ago, Nicole42 said:

How would I rebuild my credit after bankruptcy when I'm on SSDI & highly unlikely to be issued credit lines because the lenders can't recover from me if unpaid?

Rebuilding is possible.  To the extent you had before your medical issues:  maybe not but being on disability isn't an automatic barrier to credit.

1 hour ago, Nicole42 said:

So are there (2) types of goodwill letters. One requesting forgiveness after a payment & the other requesting forgiveness of the entire debt?

Depends on what outcome the consumer wants.  

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On 2/28/2021 at 11:26 AM, Nicole42 said:

It was legal I guess since employer did NOT have to comply with the Federal Leave Laws (due to size) & I hadn't been able to return to work since my diagnosis in August 2018.
 

How are you sure due to size? As long as they have at least 50 employees within a 75 mile radius they are required to follow the FMLA, so long as you have a.) worked there for at least one year, and b.) worked at least 1250 hours. Of course, that would only provide you with a certain amount of unpaid leave anyway. But even if FMLA doesn't apply, the ADA may. Might be something worth speaking to an attorney near you about, free consultation.

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