People expect payday loan providers and credit card companies to be aggressive or outright abusive when collecting on a debt. These organizations primarily profit off of people’s debts and therefore have very little tolerance for late payments. They have a well-earned reputation for their willingness to take people to court over past-due balances and missed payments.
Few people recognize that medical creditors in the United States are often also very aggressive in their collection efforts. People think of hospitals and doctors as compassionate and expect them to work with someone who owes money after surgery or other treatment, like chemotherapy for cancer. However, hospitals and other healthcare providers may take someone to court over their debt.
What healthcare providers can do
There are multiple ways for healthcare providers to demand repayment from individuals in Alabama. State law allows hospitals to ask for a lien against someone’s future recovery in a personal injury case, possibly after providing care related to a car crash. Other times, hospitals owed large balances from individuals for care may ask the courts for a lien against their home or other valuable assets. If someone returns to work, a creditor lawsuit could potentially lead to the state garnishing their wages.
When someone who has recently gone through medical treatment does not currently have the income to repay what they owe as quickly as the care provider would like, they may be at risk of a debt-related lawsuit. Pursuing a personal bankruptcy filing with the assistance of an experienced legal professional can protect people from the aggressive collection tactics often employed by hospitals and other creditors when high balances are due.