I have a 3000.00 hospital ded. as of 5/22/09. I paid 200.00 already.
I agreed to make 100.00 a month payments maybe 150.00 a month starting in Sept. But I commit to 100.00 a month. They want me to finance for 12 months with a finance comapny and be charged interest. I refused to do that. I am not paying interest on a Florida Hospital bill. I do not feel 100.00 is unreasonable. I was told I can send them 5.00 a month and they would have to take it. I have outstanding credit and no debt other than this bill and my car and 700.00 car repair bill just incurred. My work hours got cut back to 35 hours.
My question is: can legal action be taken against me and will my credit be ruined?
I would need many additional facts before I could provide you legal advise. There are some general observations that you may find helpful in organizing your information to speak with an attorney.
The hospital may sell (or place) your account with a debt collector. Assuming the debt collector reports the account to a credit reporting agency, your score will probably be adversely affected. (If you do not have other accounts already in collections or other past due accounts, the collection account may decrease your score.)
Do not put too much emphasis on a credit score, however. Many people fall into this trap and then don't have the money to pay for more important things (such as their mortgage).
Because your employer has reduced your hours, you need to focus on your mortgage/rent, car payments, and necessities.
Although a debt collector could sue you for paying only what you can afford ($ 100) rather than some arbitrary amount that they try to beat you up into paying, I'd guess that you probably won't be sued if you reliably send them $ 100 every month.
Usually, taking a loan out to pay unsecured debts is a BAD idea. People used to ridicule me for saying this and take out second (and even third) mortgages against the appraised equity in their homes to pay off their credit cards, etc. As events of the past three years have demonstrated, many of these people probably made a mistake which, in many cases, probably unnecessarily jeopardized their home.