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n944la

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Need advice on past medical collections while on SSDI & Medicaid
Hi

I was awarded SSDI back in Oct of 2014 and thus have Medicare as well as Medicaid (since 2013). I currently have $11,000 in medical debt (the only debt I have) from 5 different hospitals in 11 different collection attempts. Most are from the same agency. All of these are from 2011-2013...which was prior to me being on Medicaid even.

I have one credit card via an offer here that has a $300.00 limit in which I pay off 100% each month...since early 2015. My total income is via SSDI (~$950.00) a month...which does not in anyway allow me to apply anything to any account in collections. Is there some resource or program/service that I can utilize to clear up some of these collections ??

I have not contacted anyone for help as of yet. According to my information here on the site, those are reason my credit score is so low...580. I have not had credit before this credit card I got earlier this year, so I knew I would start out with a poor rating...in fact I didn't have the option to get a credit score as they said I had a 'thin account'.

I was found to have been disabled via the Administrative Law Judge (ALJ) as of August 1, 2010. I had applied 3 times prior and was denied and had to hire an lawyer to handle my case.

Since I was disabled since August 1, 2010 and all my collections are from 2011+, does this give me an advantage when trying to have them removed ??

Thank You

Tim

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Since you were determined to have been disabled since August, 2010, your SSDI back-payment award should've been retroactive to that date. From that money you should've paid the bills that occurred after that date. Or, at the very least, you should have contacted the collection agencies and tried to work out lower settlements, and then paid those. I'm guessing that your lump sum back-payment award is long gone now, and with your very small monthly benefit you really have no way to make payments. Other than contacting the collection agencies and trying to work something out, I'm not sure what you can do. But if you do nothing, your credit score will remain bad because of those unpaid debts.

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It is obvious that you cannot afford to pay these old medical bills due to your monthly income, so DO NOT contact the collection companies to make any payment arrangements, you would just be throwing money away that you cannot afford to without any hope of ever getting these accounts paid in full. I would contact the attorney that you used to get your disability and ask him/her what you could do about these debts, an attorney that practices in your state would be able to give the best advice needed for your situation. Beyond that, negative accounts lose their punch as they age, so just keep your active credit lines in good standing to add some positive to help override the negative.

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Thank you

Hi guys

Thanks for both responses. With respect to the back benefit payment, most of that went to pay off personal debt from family members and friends, so your right.....there isn't much left at this point. The choice to pay back the personal debt versus the collections debt was soley my decision, however, I probably should have balanced it out a bit as well.

I was going to contact the attorney once I got some basic advice from others, so I will do that for sure. I know the negative accounts remain on your report for at least 7 years, so thats a bit helpful in an inderect way, however, doing nothing like you said would be an issue.

If the total debt was considerably less of course, I would contact them and try to work things out, however, as you stated, that would be pointless at this point in time.

I am only 28 and before my head injury I never had the need for credit and thus never had any cards or accounts by way of credit.

What really sux is my condition is permanent which leaves me unable to work at all with any reliability and that bothers me much more than any of the money issues.

Anyways, thank you both f0r responding. I will call the attorney and discuss it with her and take it from there. Live and learn I guess.

Sincerely

Tim

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Good luck, Tim. I'm sorry you're having to deal with such serious health problems so young, especially since your problem is permanent. I've been through the health wringer, multiple times, including a very serious illness [that I nearly died from] when I was 21-22, and a brain tumor in my 50s. The brain tumor put me permanently out of work, which sucks because I was a workaholic! Anyway, good luck and I hope things look up for you. By the way, I actually understand choosing personal debts over commercial debts, and would probably have made the same choice.

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