Debt Collectors and Medical Bill Lawsuits

In a previous post about debt collection lawsuits and a recent report from ProPublica, we mentioned that hospitals tend to be among the creditors who jump to filing lawsuits when patients do not make timely payments on their bills. We would like to explore this area a bit further by looking at a ProPublica report on statistics about medical bills and debt collection claims.
If you require unexpected medical care or surgery and cannot afford to pay your bills immediately, should you be concerned about becoming the subject of a debt collection lawsuit? As the report explains, “debt collectors sue over medical bills as small as $60,” and it is important for consumers to think carefully about ways to protect themselves. In some situations, filing for Chapter 7 bankruptcy may allow you to discharge your medical bills and to avoid a debt collection lawsuit filed by a hospital or other healthcare facility. An experienced bankruptcy attorney in Chicago can discuss your options with you.
Aggressive Nature of Hospital Debt Collection Lawsuits
As the ProPublica report points out, filing a lawsuit to obtain money owed is “one of the most aggressive ways to collect debt,” and it is a practice often used by hospitals and other healthcare facilities. But this practice is also used more frequently in some states than others. Why would the state in which the hospital or patient are located make a difference? In short, different states have different court filing fees, and in some states they simply do not cost enough to deter collectors from filing lawsuits from smaller amounts of debt. As the website for the Illinois Attorney General makes clear, the filing fee for a debt collection lawsuit varies from county to county in Illinois. Typically, however, debt collection lawsuits for amounts under $3,000 will be handled by a small claims court.
According to the Cook County Court website, the filing fee for small claims depend upon the amount the creditor is seeking by filing a claim. The fee schedule is as follows:
  • $119.00 filing fee for claims between $0.01 and $250.00;
  • $172.00 filing fee for claims from $250.01 to $1,000.00;
  • $177.00 filing fee for claims of $1,000.01 to $2,500.00; and
  • $227.00 filing fee for claims ranging from $2,500.01 to $3,000.
While these costs are higher than some states (for example, filing fees in Nebraska start at $45.00, according to the report), they may not be high enough to deter a hospital from filing a lawsuit against a debtor for a relatively small amount of money owed.
Bankruptcy Over Unpaid Medical Bills
If you have had a lawsuit filed against you for unpaid medical bills and are considering filing for consumer bankruptcy, you are not alone. According to an article from CNBC News, numerous recent studies have determined that medical bills are among the most common reasons that debtors in the United States seek bankruptcy protection. Approximately two million people file for bankruptcy each year because of medical debt, which makes “healthcare the number one cause of such filings,” according to the article.
If you have questions about medical bills and bankruptcy, a dedicated Oak Park bankruptcy attorney can help. Contact the Emerson Law Firm to learn more about our services.
See Related Blog Posts:
Cancer Survivors Dealing with Bankruptcy

Comments

  1. Saqib KhatriMay 17, 2017 at 4:30 AM

    Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with extra information? It is extremely helpful for me. debt collectors

    ReplyDelete

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