I owe hospital $3000. It went to collections. They said they will accept half….$1500. I'm not sure if it's on my credit report. The hospital claimed they don't send it to our credit reports.
In September the state gave everyone a $200 check ( Virginia) because the hospital and state are together in some way, they had claim to my $200 and took it. Anyway, my big thing is I do not want to get a 1099 form. Should I just organize a payment plan with the debt collector then? Maybe have them take off at least $599 so I don't get the form? $599 off is better than nothing?
Also, does anyone know if you are in a payment plan with the hospital debt collector agency….is that an "agreement" enough or will they still continue to take my state refunds….for example that $200 we all got???? Ugh, I am in a mess.
HELP! I need advice on what to do about hospital bill in collections and tax question
byu/Aussie_Turtles00 inpersonalfinance
Posted by Aussie_Turtles00
1 Comment
That’s a tough situation, collections make everything more stressful. A couple of things to keep in mind:
– If you settle for less (like the $1500), it’s usually reported as “settled” instead of paid in full, but that’s still often better than leaving it unpaid.
– Medical debt doesn’t always show up on your credit right away, but once it’s in collections it can.
– The 1099-C usually only applies if debt is forgiven, so it’s worth asking them directly before agreeing to anything.
Before you decide, try to get any settlement offer in writing. If you can handle a payment plan, that’s usually the cleanest route, but a reduced payoff can also make sense if it closes it out.