Getting sued over medical debt… what is going on

Discussion
1

So about three months ago, I got court papers saying I was being sued for $308. I called the collection agency, and we agreed that if I started making payments, they would drop the lawsuit. I’ve been paying $50 a month and have already paid $150.

But today, I got a default judgment in the mail, and now it says I owe $445. How does that make sense?

  1. We had a deal that as long as I was making payments, they would drop it. I’ve done exactly that.
  2. Even if they ignored the deal and kept going with the lawsuit, how does my balance go up to $445 when I’ve already paid $150? If anything, it should be down to $295.

Did they just take my money and keep suing me anyway? I left them a voicemail and will call the court first thing tomorrow.

I had a rough year with medical issues and still owe a ton. This is just making things worse. Any advice?

2

I see these kinds of small debt lawsuits sometimes, and they honestly make no sense. Most companies don’t even bother suing for amounts this low. Are you sure this is legit?

Also, medical debt laws depend on where you live. The time limit for suing over medical bills is usually between 3 and 10 years, depending on the state.

This whole thing just seems sketchy.

3

@Tal
I’m a lawyer, and yes, they absolutely sue over small amounts—especially in states where court filing fees are low, like New Jersey.

4

Noor said:
@Tal
I’m a lawyer, and yes, they absolutely sue over small amounts—especially in states where court filing fees are low, like New Jersey.

Since you’re a lawyer, do you have any advice on what I should do? I plan on calling the court and collection agency tomorrow, but I feel like they straight-up took my money.

5

@Tal
It’s not a bank suing me, it’s a medical collections case. Also, I’m 23… the debt isn’t.

6

Keagan said:
@Tal
It’s not a bank suing me, it’s a medical collections case. Also, I’m 23… the debt isn’t.

That makes more sense, but still, suing for that amount seems like a waste of time. Maybe you can show the court that you’ve already made payments?

7

@Tal
If they have a system in place for lawsuits, they don’t care about the amount. It all costs them the same.

8

@Tal
Yeah, I agree. This whole thing just feels wrong, but I’m new to this, so I’m just trying to figure it out.

9

Keagan said:
@Tal
Yeah, I agree. This whole thing just feels wrong, but I’m new to this, so I’m just trying to figure it out.

If I were you, I’d go to the courthouse with proof of your payments and see if they can do anything. Normally I’d suggest getting a lawyer, but for an amount this small, it might not be worth it. Too bad you already started paying—sometimes ignoring these cases works because they don’t always bother with wage garnishment.

10

@Tal
I’m in Omaha, Nebraska, and honestly, this is just one more thing adding to a horrible start to the year. I just got out of the hospital for the flu, spent my birthday sick, my car’s head gasket blew, and now this. Everything is falling apart.

11

@Keagan

Nebraska Wage Garnishment Laws for Medical Debt

  • Max they can take: 25% of your paycheck
  • Exceptions: If your income is low enough, they might not be able to take anything

If you ignore it, the worst thing that can happen is wage garnishment—if the judge approves it.

Also, man, I feel you. My Prius blew a head gasket last year too. Was lucky enough to find another car.

12

@Tal
I guess I’ll just have to see what the court says tomorrow. What sucks is I just started a new job on the 13th, then got sick for a week. So now my first paycheck will be tiny, and I won’t get a full one for another two weeks.

I make $26 an hour, so I don’t think my income is low enough to stop them from garnishing.

13

Did you actually go to court on your court date?

14

Clove said:
Did you actually go to court on your court date?

No, because they told me I didn’t have to. They said as long as I made payments, they would take care of everything and drop the case.

Pretty sure they just lied to screw me over.

15

@Keagan
Did you get anything in writing? Or have any recorded messages proving what they told you?

16

Clove said:
@Keagan
Did you get anything in writing? Or have any recorded messages proving what they told you?

Nope, just my bank statements showing that I made payments.

17

Keagan said:

Clove said:
@Keagan
Did you get anything in writing? Or have any recorded messages proving what they told you?

Nope, just my bank statements showing that I made payments.

Well, maybe they’ll fix it… but don’t count on it.

18

@Clove
But if I paid and I have proof, isn’t it illegal for them to just ignore that?

That sounds like straight-up theft.

19

Keagan said:
@Clove
But if I paid and I have proof, isn’t it illegal for them to just ignore that?

That sounds like straight-up theft.

Maybe, but if the judgment was already entered, it’s legally binding now. Since you didn’t go to court, you lost your chance to fight it.

20

@Clove
That just doesn’t make sense to me. How can they take my money and then still say I owe more?