is there anybody out there that knows something about bankruptcy?

[JasonB]

Hey guys, I'm in the dark here and need some advice.

I have a collection agency after me for about ten grand in medical bills. What happened was I broke my hand, had surgery and then my bosses retro-actively canceled our benifits, then they layed a bunch of us off and then filed bankrupcy themselves. So here I am no job and I am being sued. The collections guy wont accept payments I can afford right now and is following through legaly.

What can I expect? Criminal charges? Jail? Can they take my home?

What options do I have? Some people are saying I shouldn't file for ten grand, that it would be stupid.

I am at my wits end here.

Any advice for me? Words of encouragement?

[old_guy]

Don't file bankruptcy for a $10,000 debt.

Something doesn't sound right about your former employer retroactively canceling your benefits. Contact the insurance company and find out what's going on. If the insurance company canceled the employer's contact for non-payment, seems to me there is a duty for the insurance company to notify you of the cancellation. If they jerk you around, contact your Congressman!

Sounds like you ignored your billings from the hospital, and they got pissed off at you and sold your debt to a collection agency. They will jerk you around till you show some good faith to pay off your debt. They aren't going to send you to jail, but they can certainly make your life unpleasant. Try and work out a payment plan with them.

[Don]

Sounds like good advice from old guy, Jason. I've been through the bankruptcy route 20+ years ago, don't know what it's like now, but back then it was ugly and the people I was trying to appease with the "liquidation" of everything I owned never got a cent.

And, no; unless something has changed, they can't take your home. Only your mortgage company or government can do that, such as when taxes are levied or you default on the mortgage.

Good luck to you and let us know how things work out.

All the best, Don

[JasonB]

Thanks guys. We did talk with the ins. company and they said the ins. was retroactivley canceled. As far as I can figure, my bosses were paying at the end of every quarter and so when they stopped paying the ins. company went back the three months that would have been covered by that payment.

Yeah we did start ignoring the bills at a point. I know that doesn't make them go away... we just didn't have even a percentage to pay with me losing my job.

When it rains it poors huh?

It looks like my MIL is going to help us get this payed off. I am very greatful for that.

Thanks for the responses guys!

[old_guy]

This insurance thing just doesn't sound right. Most insurance companies in the civilized world would require that the employer pay the premiums in advance. Furthermore, if the employer failed to make payments, the insurance company would still have to cover any claims pending notification of the employees that the policy had been canceled.

Contact the Idaho Department of Insurance, 800-721-3272, and explain what happened to you. If they can't be of any help, start contacting your local press, your congressman, etc. It's this type of B.S that is fueling the cry for health care reform.

[Domer]

I agree that every insurance company I have ever heard from requires you to pay at at least in the month of coverage.

So I cannot see how they would let them get three months behind. Perhaps, Idaho is different from here.

I agree that you should contact the Idaho Insurance Commissioner. I guarantee you that no one in the insurance business wants to get a call from them.

In addition, I think you would have a personal claim against the owners of the business especially if you were paying a part of the premium. I would think you could go after assets that were not part of the company.

There are many attorneys that will give you a free first visit to discuss you situation. You might call a few and ask.

Just ignoring them will make it worse.

Good luck.

Domer

[JasonB]

thanks for the responses guys.

I guess I will need to call that number. My wife has talked to some people who told her what happened was legit. I didn't know I could talk with the dept. of insurance though. Didn't even know it existed. I'll give it a shot.