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Just got served a lawsuit over an old $600 medical bill

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DE2TX
Established Member

Re: Just got served a lawsuit over an old $600 medical bill


@jason0618 wrote:
Ok, clarification time.
When I say I owe it, I mean it's something I've been billed for, but don't agree with. I paid the dr my copay at the time, and my insurance company paid their portion as well. Nobody can determine what this $600 accounts for.
I've tried settling, they won't settle. Since I don't feel it's a valid debt, that's why I've not paid it. Like I said, it's the only collection on my reports, so I'm not some deadbeat trying to avoid responsibility. I'm just not going to pay some debt collector just because they say I owe.
That being said, I don't need a judgment on my credit. I'm in the process of buying a house, and I'm sure that's where this came from, since I've not heard s peep from these guys in a couple of years. My question is whether or not I should just pay the $600 to settle or go to court and demand answers and validation.

I would fight it then. Worst case scenario is you pay after they can prove they own the debt, the debt is valid, it's within the SOL, etc.  They are many elements that they need to proved before they can win.

Message 21 of 31
DE2TX
Established Member

Re: Just got served a lawsuit over an old $600 medical bill


@jason0618 wrote:
If I settle, it does not become a judgment, right? So no new entry on my credit report?

Right. It does not become a judgement until after a judge rules and some motion is filed. You could go all the way to court, enage in discovery, hear arguments, and settle with them before a judge rules. Or, you could settle now. If they are sticking to the $600 and won't accept less then you don't have anything to lose by going to court - except your time - because you can always pay what they are asking. I can't imagine any lawyer spending much time on this though. Why spend hours and hours on pleadings, derrogatories, and on a trial just to collect a portion of $600?

Message 22 of 31
Fox342
New Contributor

Re: Just got served a lawsuit over an old $600 medical bill


@DE2TX wrote:

@jason0618 wrote:
Ok, clarification time.
When I say I owe it, I mean it's something I've been billed for, but don't agree with. I paid the dr my copay at the time, and my insurance company paid their portion as well. Nobody can determine what this $600 accounts for.
I've tried settling, they won't settle. Since I don't feel it's a valid debt, that's why I've not paid it. Like I said, it's the only collection on my reports, so I'm not some deadbeat trying to avoid responsibility. I'm just not going to pay some debt collector just because they say I owe.
That being said, I don't need a judgment on my credit. I'm in the process of buying a house, and I'm sure that's where this came from, since I've not heard s peep from these guys in a couple of years. My question is whether or not I should just pay the $600 to settle or go to court and demand answers and validation.

I would fight it then. Worst case scenario is you pay after they can prove they own the debt, the debt is valid, it's within the SOL, etc.  They are many elements that they need to proved before they can win.


Now that's some relevant information.  Thank you for clearing that up.

 

I agree, I think I would fight it too.  Can you get any documentation from your insurance company thath would help you with your case?

 

Fox

"The borrower is slave to the lender."
(EQ: 820) (TU: 827) (EX: 815)
Message 23 of 31
jason0618
Frequent Contributor

Re: Just got served a lawsuit over an old $600 medical bill

Well, I don't have any info I could get from the insurance company, as I don't still have that company.
The downside with fighting it in court is the same as a poster mentioned above. A lawyer isn't going to want to go to court, spend hours preparing, and building a case to get a portion of $600. At the same time, I don't want to spend much time researching and drafting answers, missing work, etc over $600, either. I think I'll file an answer within the 28 days, and see how they respond. They filed it in my town, which would be a three hour drive for them, each way.
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Message 24 of 31
gdale6
Moderator Emeritus

Re: Just got served a lawsuit over an old $600 medical bill


@jason0618 wrote:
Well, I don't have any info I could get from the insurance company, as I don't still have that company.
The downside with fighting it in court is the same as a poster mentioned above. A lawyer isn't going to want to go to court, spend hours preparing, and building a case to get a portion of $600. At the same time, I don't want to spend much time researching and drafting answers, missing work, etc over $600, either. I think I'll file an answer within the 28 days, and see how they respond. They filed it in my town, which would be a three hour drive for them, each way.

Since you have not provided info as to what state you live in this is what you want to do, first see if its inside SOL, the SOL will be for a written contract, search the state you are living in and the state they are in if its different. If its past the SOL then respond and use the SOL as your defense. If its still inside then settle before going to court.

Message 25 of 31
Shogun
Moderator Emeritus

Re: Just got served a lawsuit over an old $600 medical bill

I agree with the above, it has to do with the SOL.  It caries by state.  I know Arkansas even has a special SOL on medical of 2 years.

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Message 26 of 31
StartingOver10
Moderator Emerita

Re: Just got served a lawsuit over an old $600 medical bill


@jason0618 wrote:
Ok, clarification time.
When I say I owe it, I mean it's something I've been billed for, but don't agree with. I paid the dr my copay at the time, and my insurance company paid their portion as well. Nobody can determine what this $600 accounts for.
I've tried settling, they won't settle. Since I don't feel it's a valid debt, that's why I've not paid it. Like I said, it's the only collection on my reports, so I'm not some deadbeat trying to avoid responsibility. I'm just not going to pay some debt collector just because they say I owe.
That being said, I don't need a judgment on my credit. I'm in the process of buying a house, and I'm sure that's where this came from, since I've not heard s peep from these guys in a couple of years. My question is whether or not I should just pay the $600 to settle or go to court and demand answers and validation.

^^^This is important info to know.  Yes, they were waiting for you to apply for a mortgage to pop up and sue you. The collectors can purchase lists of people applying for mortgages and scrub the list against their database. It is such a common tactic that some people have a mortgage lender pull many months before needing the mortgage to bring these types of CAs out of the woodwork so they do have time to negotiate it without jepordizing their purchase of a home.

 

The CAs know that you can't afford to get a judgment when you are in the mortgage process. It will stop the mortgage in its tracks. They now have your attention - regardless if the debt is valid or not. Since they are well aware you are applying for a mortgage - any negotiating power you had is now out the window 

 

IMO, if it were me and my new home, I would pay it in exchange for vacating the judgment.  The amount is why I wouldn't bother to fight it.  If it were $$$$, then naturally my answer would be different.

 

It is up to you, but being in the middle of obtaining a mortgage puts a whole different light on the subject.

Message 27 of 31
Anonymous
Not applicable

Re: Just got served a lawsuit over an old $600 medical bill


@StartingOver10 wrote:

@jason0618 wrote:
Ok, clarification time.
When I say I owe it, I mean it's something I've been billed for, but don't agree with. I paid the dr my copay at the time, and my insurance company paid their portion as well. Nobody can determine what this $600 accounts for.
I've tried settling, they won't settle. Since I don't feel it's a valid debt, that's why I've not paid it. Like I said, it's the only collection on my reports, so I'm not some deadbeat trying to avoid responsibility. I'm just not going to pay some debt collector just because they say I owe.
That being said, I don't need a judgment on my credit. I'm in the process of buying a house, and I'm sure that's where this came from, since I've not heard s peep from these guys in a couple of years. My question is whether or not I should just pay the $600 to settle or go to court and demand answers and validation.

^^^This is important info to know.  Yes, they were waiting for you to apply for a mortgage to pop up and sue you. The collectors can purchase lists of people applying for mortgages and scrub the list against their database. It is such a common tactic that some people have a mortgage lender pull many months before needing the mortgage to bring these types of CAs out of the woodwork so they do have time to negotiate it without jepordizing their purchase of a home.

 

The CAs know that you can't afford to get a judgment when you are in the mortgage process. It will stop the mortgage in its tracks. They now have your attention - regardless if the debt is valid or not. Since they are well aware you are applying for a mortgage - any negotiating power you had is now out the window 

 

IMO, if it were me and my new home, I would pay it in exchange for vacating the judgment.  The amount is why I wouldn't bother to fight it.  If it were $$$$, then naturally my answer would be different.

 

It is up to you, but being in the middle of obtaining a mortgage puts a whole different light on the subject.


^i agree with this 100%. right or wrong, what's $600 when you're buying a house? i'd call it a cost of doing business, pay it, and move on - maybe you can fight to get it back afterwards, but if you miss out on the house over this, you'll regret it. It's also going to delay the mortgage process, which is long enough.

Message 28 of 31
Anonymous
Not applicable

Re: Just got served a lawsuit over an old $600 medical bill

Contact the creditor immediately, pay the $600 or whatever it is (maybe a hundred or two additional, if they seek to recoup legal costs) to have the case withdrawn. Once it goes to court, things get more complicated.

 

Spending several hundred dollars now is worthwhile for clean reports and higher scores. Paying even a few tenths of a percent more interest on a mortgage due to less favorable credit could cost far more in the longrun.

 

To echo the sentiments of mike1979 and StartingOver10, consider payment as a cost of doing business; don't take it personally. Sure, the debt could be bogus and/or very inflated, but at this point, you don't have many options nor time. Easiest route is paying it immediately to have the case withdrawn.

Message 29 of 31
Rebuilding69
Established Contributor

Re: Just got served a lawsuit over an old $600 medical bill

$600 is nothing when you're talking about trying to get into a home. As ronpa & others have said, weigh the cost of $600 now versus the increased costs if it hits your reports. As someone who now has THREE medical-related judgements on their report, you DON'T want a judgement on your report. My scores took a huge nosedive even after the first one hit my report.

 

Sometimes you have to play the game you don't want to play now in order to win later on.

 




Message 30 of 31
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