When you are injured due to someone else’s negligence, the medical bills can quickly pile up. A car accident can lead to minor injuries that need to be treated, such as whiplash, or it can lead to more severe injuries, such as a broken spine. A slip and fall could lead to a simple twisted ankle or a fractured hip. As a medical malpractice lawyer can share, even the most minor injuries can lead to large, long-term medical bills. While you pursue a personal injury case and wait to see the outcome, the bills may be sent to a collection agency. Insurance may not cover everything, and you may receive notifications from collections.
Pending Claims
Unfortunately, hospitals and other medical providers can send your overdue bills to collections even if your case is actively in court. It is common for personal injury clients to hold off on paying or even setting up a payment plan until they see the outcome of their case. However, medical providers do not put a pause on their procedures. It is best to consult your attorney to determine how to tackle potential payments during your ongoing case.
Some tension may arise because personal injury cases do not follow medical billing cycles. If bills are not paid, regardless of pending litigation, those bills can be sent to a collection agency. It can be reported to the three major credit bureaus when this occurs. It is important to note that under the National Consumer Assistance Plan, there is a 180-day waiting period before your medical debt can appear on your credit report. This is to provide you time to straighten out overdue bills with insurance companies or through disputes. However, personal injury cases can easily go past this period.
If your debt shows up on your credit report, it can affect your credit score, loan eligibility, housing applications, and even interest rates. Some credit bureaus reduce the impact of medical debt compared to other types. However, several traditional lenders still use older models that do not reduce it, impacting your credit and ability to use it.
Protect Your Credit
From the start, you should inform all your medical providers that you have pending litigation. If your case extends past the timeframe of bills being due, tell the collection agency contacting you that you have an open case. Alert your lawyer that you are receiving collection calls, as they can send a letter of protection letting the agency know they will receive payment after the case is completed. This can stop collection agencies from contacting you. However, if they continue to reach out, work with your lawyer. They can also help you understand the Fair Credit Reporting Act (FCRA), which requires accurate debt reporting and allows you to dispute errors. If your debt is reported on your credit report, an attorney can help you remove it, depending on your situation.
Medical debt is a common consequence of a personal injury case, as our friends at Cohen & Cohen can share. You should never ignore your bills and assume they will automatically be resolved, but depending upon your case, you do not have to try to pay them immediately either. Work with a personal injury attorney near you to start on the path to a settlement for your case, and understand how your debt might affect your credit score in the meantime.
