Question for the WhyChat the Wise

[agingindebt]

I have over $25K in unpaid hospital debt that has gone to collections. I never thought that these bills would have a significantly negative impact on my ability to gain employment, or my ability to earn an income.

 

Back in 2009, I was collecting unemployment, and was involved in an accident during a framing job for some side money. Uninsured, I relied on the services of a county hospital in California. I was shocked to see that the total amount for the surgery I needed totaled over $25K. I applied for the county financial assistance program, but was denied assistance since my unemployment insurance benefits paid a couple hundred dollars more than the maximum amount allowed to qualify. I vowed that one day my income potential would improve and once that happened, I would pay back the debt and move on with my life.

 

Fast forward to the summer of 2013. Degree completed, student loans being paid, fathered a child, moved into a larger place with child and significant other. She stays at home and is finishing her MBA while planning her (...oops, our) fairy tale wedding on a shoestring budget. So while my earning power has improved, new expenses and one income do not provide enough slack in the income to pay off all current liabilities and satisfy all bad debts. Frustrated by the glass ceiling of my current job, I applied to, interviewed and was offered a position with a prestigious financial institution. As part of the employment process, a credit check was conducted, and two days later (a day before I submitted my 2 week notice) I was told that I would need to bring the bad debt down to a balance not to exceed $15K in order to come on board with the firm and the offer was rescinded. This is the 2nd time in three years that this has stagnated financial growth. One credit report (from Credco in 2012) lists the county/ governing agency as the CA and the OC as the hospital where aid was rendered. Reports directly from the CRAs' (as of 7/2013) list the collections department of the governing agency as the CA and "government misc debt" as the OC or account type. Now what?

 

My questions are several, please bear with me:

 

Since this is a county hospital, am I SOL? (not statue of limitations)

In this situation, is there any recourse by taking the steps you listed in previous posts?

Am I in jeopardy of being sued? Should I file bankruptcy to avoid being sued?

 

Is bankruptcy an option? What are the consequences, short/ long term?

How does a bankruptcy affect my ability to obtain a position in the financial industry?

How will this decision affect my significant other after the wedding? Does she incur my bad debts as my spouse?

 

Do credit management companies do anything more than what you are advising CB members to do? A company I consulted stated that it would take monthly payments of $383 for three to three and half years to "satisfy" this debt. The first thing that crossed my mind was, "if I can afford that, why do I need the debt mgmt company?"

 

I know I have overwhelmed you with all my questions, but this recent news is overwhelming.

[Why Chat]

It is more than likely that the accounts were written off by the hospital.

 

Follow all these directions:

 

http://www.whychat.5u.com/GUIDEBOOK.html

 

http://www.whychat.5u.com/GUIDE%20HIPAA%20PROGRAM.html

 

Use the NEW shorter initial dispute letter

http://whychat.5u.com/hipaadisp.html

 

I presume you have moved since the date of your injury?? Once you get your old addresses deleted ( after opting out) and send the initial NEW dispute letter to each CRA, I would expect that all of these accounts will be deleted.

 

The extended SOL for "Governmental" debts are designed to prevent fraud by ( mostly well to do foreign visitors) who run up huge medical debts and then skip out. If you haven't been sued by now, there is no chance that you can be sued now. I doubt that any reporting CA is the original assigned CA and these JDBs can not sue.

[agingindebt]

Thanks for your reply. I am even more confused. The county hospital has written off the debt, but the county itself is collecting the past due amount. The county of the state is listed as the CA. I called months back the first time I was denied employment, and the collector on the phone said to expect legal action, and that once I have acquired assets, the government will put a lien on those items.

 

I plan on going forward with the process you advised, but I don't want to awake a sleeping giant.

 

If they have not sued me by now, why is there no chance that I could still be sued?

[Why Chat]

They don't have to sue you if it is a Governmental debt. They can seize any State tax refunds or file a lien against assailable assets that are not exempt without filing suit.

 

Go ahead with the program up to the point of deleting old addresses ( after opting out) and then PM me with the name of your State.

[agingindebt]

Pulled credit reports, and the previous address where I resided at the time of service is not listed on 2 of the 3 credit reports. (TU and EX do not show) How to proceed at this point? Interestingly, the credit report shows other addresses that I lived at before receiving service, but not the one in question. Do I proceed as instructed?

[Why Chat]

Pulled credit reports, and the previous address where I resided at the time of service is not listed on 2 of the 3 credit reports. (TU and EX do not show) How to proceed at this point? Interestingly, the credit report shows other addresses that I lived at before receiving service, but not the one in question. Do I proceed as instructed?

Yes