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Was your bill sent to a debt collector? Here’s what to do next

On Behalf of | Jul 7, 2019 | Credit Card Debt, Firm News

Owing a significant amount of debt is frustrating, especially if your financial frustrations are the result of things that are beyond your control. For example, you may find yourself facing significant medical debt after a sickness, extended stay in a Tennessee hospital or unexpected surgery. You may not have the savings to deal with the bills that just keep coming, and before long, you may be hopelessly behind.

If you cannot pay your bills, the creditor may choose to send the medical debt to a debt collector. This means they hire a third party to attempt to get money from you. This may include calling you multiple times per day, sending you letters and much more. It can be overwhelming, but there are options available to you. It may help you to learn more about what you can do if a collections agency starts calling.

What should you do next?

If you find out a debt was sent to a collections agency, it’s not time to panic. There are specific things you can do to protect your interests and fight for a better financial future. Some of these steps include:

  • Take the time to go over your bill and make sure they are charging you correctly. Billing errors happen, and you should not have to deal with a debt you don’t actually owe.
  • Try and negotiate with the hospital or the creditor in order to see if it’s possible to get a discount on a lump-sum payment or establish an affordable payment plan.
  • Keep careful records of what you have paid and what you still owe, including receipts from payments that you made.

You have the right to ask debt collectors to stop calling you, and they must oblige your request. However, this does not make the debt go away. In order to deal with your medical debt once and for all, you may want to consider filing for bankruptcy.

Why bankruptcy?

There are many reasons why bankruptcy can be a beneficial choice. This is an organized process that allows you to deal with your debt by following the terms of a structured bankruptcy plan. It also enacts the automatic stay, which means that all collections efforts must stop, including those related to your medical debt.

Once you emerge from the bankruptcy process, you will have a financial future that is free from many of the types of debt that were weighing you down. For many consumers, this is a reasonable way to secure a better financial future. A complete assessment of your case can help you understand is this is the right step for you.