How to Handle a New Debt

[Monty2000]

Everyone, things have been going well for us lately, over 2 years in now, I'm up to date everywhere.
Took my kid to a Dr. a few months ago, and the Dr. Office screwed up something with the Referal. They say we owe them $502. It has been pushed to a collection agency. We have tried very hard to work with everyone, the debt normally would have been paid out of insurance.
I gave up today, and spoke to the collection agency and told them about being in Ch. 13. Gave them my case #, they are very confused and dont even know what a Ch 13 is. But I'm sure someone will inform them.
Not sure how this will work. Will they send the bill to the Courts? Will I get notice about it? Will I have time to defend myself?
I guess the good news is that it's only $502 and I dont think they can cause me to lose my house. Or am I wrong, how badly can they mess with me?

Thanks, I always get some good advise here.
Good Luck Everyone.

Monty.

[krielly]

sorry, but you can't include any new debt incurred after the date of filing in your current 13..............

Seems like if you agreed to send them some money each month - around $25 - they couldn't do too much about it, but maybe others are more knowledgeable in these situations.

[kiddles]

Depends a little on your insurance plan - if it's an HMO, the doc's office can be held responsible for correctly completing the paperwork so the HMO will cover the fee.

I'd keep after the doc's office to resubmit!

[woeisme]

If you are already in a CH 13, you can't submit new debt into the plan. I don't know that the collections dept can garnish your wages or anything like that though, since all your disposable income is dedicated to the trustee, so it's possible they might have to wait until your 13 is over to come after you for a garnishment. (I'm not positive on this though, so please check with your CH 13 attorney.) If it were me, and nothing worked with the doctor's office or insurance company, I'd put the collections agency off for as long as possible, while trying to save a little bit each month, even if it's just $10 dollars. After they try to collect for 6 months to a year or so and don't get anything from you, they might be willing to settle for a couple hundred, and since it will be under $600 that they are writing off, there won't be any tax implications.

[Flamingo]

Appeal

Everyone, things have been going well for us lately, over 2 years in now, I'm up to date everywhere.
Took my kid to a Dr. a few months ago, and the Dr. Office screwed up something with the Referal. They say we owe them $502. It has been pushed to a collection agency. We have tried very hard to work with everyone, the debt normally would have been paid out of insurance.
I gave up today, and spoke to the collection agency and told them about being in Ch. 13. Gave them my case #, they are very confused and dont even know what a Ch 13 is. But I'm sure someone will inform them.
Not sure how this will work. Will they send the bill to the Courts? Will I get notice about it? Will I have time to defend myself?
I guess the good news is that it's only $502 and I dont think they can cause me to lose my house. Or am I wrong, how badly can they mess with me?

You may not be responsible for that bill since the doctor under your health plan, as you state, messed up with the referral. Did you contact your insurance company about this? Most HMOs or PPOs (you don't state what kind of insurance you have) have contracted providers to which members can only go for care. If you go out of that system, you may not becovered. You can appeal this with your insurance carrier to find out exactly what happened and if the doctor is in error, you will not be responsible for anything. However, if you went to the doctor without checking to see if the doctor was covered under your policy, there is not much you can do but see if you can work out a payment plan. New bills incurred after you file Chapter 13 do not become part of your plan - they are your responsibility.

[Monty2000]

Thanks everyone, Not an HMO, but it was a simple matter of the dr. saying they would handle the referral, and they didnt. If we had handled it, it would have been covered. Unfortunate circumstance.

I'm just going to hold them off as long as possible. One thing they cannot do right now is hurt my credit rating. Well not much anyway.

Thanks