Debt Recovery

Medical debt is something that can strike your reputation at any moment. Today more and more people will refer to a reputable Pennsylvania medical debt collection agency in order to get their practice afloat. In the current economy, one in three patients in Pennsylvania is not able to pay their medical bills. While this issue lies deeper than any one person can handle, it has lead to a crisis in the medical community.

We all understand the frustrations on both sides of the table. Doctors need their patients to pay in order to have adequate supplies and staffing, while today’s economy just doesn’t support to needs of the average civilian. This intuition combined with the necessary laws concerning debt collection practices is what drives medical professionals into hiring an experienced Collection Agency.

Read on to learn about the current Pennsylvania medical debt climate to help you determine if a collection agency is the right move for you.

Pennsylvania Medical and Health Care Debt Collection Statistics

As mentioned, one in three Pennsylvania patients cannot pay their medical bills. And all the insurance rate in this state is at a low 5.5%, those who have chosen not to take on health insurance say it is because the monthly cost is still too high. These uninsured patients put doctors in a difficult place as they have to treat the ill with no way to pay their staff or suppliers.

A survey conducted by the Pennsylvania Health Access Network and Altarum also determined:

• 32% of Pennsylvanians have trouble paying medical bills
• 10% of Pennsylvanians can barely afford to pay for necessities
• 29% delay having medical procedures due to the cost

Pennsylvania Medical Debt Collection Agency Laws

Unlike some outstanding balances, medical bills cannot seize personal assets due to nonpayment. The statute of limitations under Pennsylvania law is four years. This means that medical professionals may contest a lawsuit to try to regain debt owed by their patients via a Pennsylvania media debt collection agency,

The laws that these agencies must adhere to are the same as every other state. Agencies are forbidden to abuse or harass debtors unlike previous years and must maintain strict moral and professional guidelines.

In the case of a lawsuit, the creditor (i.e. the medical professional) may be able to garnish wages from patients who have outstanding balances.

Pennsylvania Medical Collection Agency Process

Our first step at settling medical debt is to send a demand letter to the patient. This is sent via USPS in the form of a physical letter. From that moment, patients have 30 days to dispute the debt, though a response is appreciated within ten days.

In that time, we recommend the creditor seriously considering to out for Collection calls service or evaluate filing for a lawsuit before the statute of limitations expires. The expiration date does not mean that the creditor cannot still seek payment, but options are greatly limited and the likely hood of receiving a full payment is really low at that point and time.

Professional collection agencies maintain regular contact and even offer services such as skip tracing and bankruptcy screening. If you’re still waiting for your patients to pay their medical expenses, it’s the agency’s job to give them options or to find out why payment has yet to be received.

Need a Medical Collection Agency in Illinois? Contact us

References:

https://www.inquirer.com/philly/health/health-cents/medical-bills-health-care-costs-survey-20181025.html

https://www.sapling.com/6884913/pennsylvania-law-medical-bill-collection

https://www.debt.org/medical/collections/

https://www.pghfirm.com/blog/understanding-the-debt-collection-process-in-pennsylvania

http://bankruptcylawyerpa.com/blog/pennylvania-statute-of-limitations-on-debt/

The state of Illinois faces debt collection issues just like the rest of the country. Medical professionals and patients are at constant ends trying to provide and receive medical treatment without having to deal with the monetary stakes upfront. But without careful attention to finances and accounts receivable, many people will have to turn to Illinois medical debt collection agencies to resolve subsequent issues.

If you are a professional in Illinois who needs the help of a collection agency, one must ensure that they adhere to Illinois state collection agency laws. We’ve also included vital statistics that can help you make the decision as to whether or not to move forward with a collection agency.

Illinois Medical and Health Care Debt Collection Statistics

Illinois state has over $12 billion in civilian debt according to a 2017 report. Medical bills for its employees account for approximately $3.5 million. And those are just the numbers for state employees. Adding to that mountain of backlog is a collective $174 million owed by state employees to dentists.

The Illinois state medical plan that offers coverage to its employees is the culprit behind these unpaid debts. It has resulted in the complicated and difficult decision to turn away state employees whose medical care does not cover necessary medical devices.

These situations lead to doctors losing their patients, sometimes it even results in the patients need to claim bankruptcy. Both of these situations are can be avoided with the assistance of a collection agency that knows how to properly delegate medical debt emergencies. 

Illinois Medical Debt Collection Agency Laws

In recent years, the U.S. has narrowly defined individual Statute of Limitations for each state. The limitations act as a guideline for Illinois medical debt collection agencies. It negates unprofessional and unwarranted behavior that patients have received from companies in the past. This type of behavior includes harassing, abusing, and using unfair practices in order to get a patient to pay their medical debts.

This conduct negatively affected the medical professionals who sold their debt to the collection agency. Thanks to the Illinois medical debt collection agency laws, these actions are no longer prevalent in today’s society.

The Illinois medical debt collection agency laws also enforce these two acts:

• Hospital Uninsured Patient Discount Act: This act includes 100% discounts for uninsured patients at certain income levels
• The Fair Patient Billing Act: This law ensures that hospitals are providing their patients with multiple payment opportunities with requirements to effectively promote these avenues to their patients to negate the rise of medical debt.

 Illinois Medical Collection Agency Process

Professional collection agencies take a amicable, diplomatic and obligatory approach to settle debts with patients. We want the process to be as smooth as simple as possible, and we take pride in ensuring the relationships between patients and doctors remain intact.

Process of debt collection includes maintaining regular contact with the patient and making sure they are aware of their payment options. Keeping detailed records of their payments and offer additional services such as skip tracing, bankruptcy screening, and keep out for idle communications such as change of address.

Need a Medical Collection Agency in Illinois? Contact us

 

References:
https://www.chicagobusiness.com/article/20170324/NEWS03/170329904/illinois-unpaid-medical-bills-reach-3-5-billion

https://www.needhelppayingbills.com/html/illinois_medical_debt_and_bill.html

http://www.illinoisattorneygeneral.gov/consumers/debtcollection.html

https://www.team-iha.org/finance/charity-care-financial-assistance/hospital-uninsured-patient-discount-act

Bail bond agents help their customers at the time when they need them the most, yet many customers them do not fulfill their obligation to make payments on time.

Recovering money from such clients (debtors) is not easy. Debt collection laws prohibit even the creditors in most states from using threatening language, unlawful pressure tactics or making false statements, making the recovery process even harder. 

A Bail Bond is a type of surety bond facilitated by a bail agent or Bail Bondsman who secures the release of a defendant from jail. The surety bond, acts as insurance that the accused will show up in court when ordered to do so. A bail bond company will usually accept a cosigner with a good credit score when enrolling for a payment plan.

If payments are delayed, a bail bond agent usually imposes a late fee that is added to principal amount. However if a debtor who has failed to make payments / installments on the previously agreed amount, he will find extremely hard to make further payments because the balance just went up due to the added interest. Chances that this person will become delinquent rises significantly.

It is extremely common for Bail Bond businesses to involve a Collection Agency which makes persistent efforts to recover money from the debtor. Involvement of a debt Collection Agency also protects the relationship of Bail Bond agents with their customers and limit legal liabilities.

A bail bond collection agency will also ensure that all debt collection laws are followed, reducing the chances of a counter lawsuit from the debtor. They are often able to recover the balance in full or renegotiate a new payment plan with the debtor. To prevent delinquent accounts going permanently red, hiring a bail bond collection agency is the best bet.

Instead of relying on a wishful thinking and wasting time, it is extremely important to forward the account quickly to a bail bond Collection Agency because the chances to recovering money from the debtor and the cosigner fall significantly as the time passes by.  These accounts are directly assigned for contingency collections due to the nature of intensity and diplomatic efforts required.

A professional Bail Bond collection agency will run several checks against the debtor, most important one being the Skip Trace, which in most cases enables to find the latest address and phone number of the debtor if he is hiding.

Collection agencies are insured for any potential lawsuit that may come during the due course of recovering the debt. They may take the debtor to the court if the amount is significant and may attempt to garnish wages or attempt to attach assets if the state law permits them to do so.

If you need a good Bail Bonds collection agency to recover money from your customers: Contact Us

( Please make sure you have all the backup documentation ready if debt verification is requested by the debtor)

 

Assisted Living Community or the Assisted Living Facility (ALF), are used by millions of senior citizens all over United States focusing mainly on senior living, assisted living, nursing and memory care. Assisted living community centers are committed to serving every senior with the respect and dignity they deserve while providing comfort and fulfillment. Some senior care services are outsourced to facilitate inpatient and outpatient services, medication management, physical therapy, occupational therapy and speech therapy.

Unfortunately, the ALF or the senior care centers are regularly faced with accounts receivable and unpaid bills which are hard to collect. Usually, the senior citizens are responsible to make their own payment, in other cases their children, a cosigner or other relatives are responsible. If they fall behind on payment obligations regardless of the reason, they are contractually responsible to make the promised payment and an Assisted Living Facility has every right to attempt to recover that money. Accounts which are over 60-90 days past due are often forwarded to a professional debt collection agency.

If you are looking for a cost-effective debt collection agency with experience of working with Assisted Living Communities and Medical Collections: Contact us

A collection agency serving the senior care centers should have in-depth knowledge of current state and federal collection laws and HIPAA  privacy regulations. An experienced debtor collector of a collection agency understands the delicate nature of both parties (the Assisted Community Living facility and the Senior), therefore the recovery is achieved using an amicable and diplomatic approach.

Senior living communities include independent living, assisted living, retirement communities, nursing homes, hourly care and hospice care centers. Aging Americans and those which Alzheimer’s or physical disability rely on Senior living centers extensively. The accounts receivable staff of assisted senior living centers are responsible for oversee daily transactions, including accounts receivable/payable, general ledger, journal entries, insurance claim followup , insurance denial, bank reconciliations and post payments daily to resident accounts.

To recover money from past due accounts, a collection agency will send debt collection letters followed by collection calls and till continue to do so till the bill is paid off. These agencies have access to far more sophisticated debt collection tools and services which the in-house staff of a senior living center do not have.

Some bill recovery services are flat fee based and others are contingency based. Due to the delicate nature of collections, almost all Assisted Living Community forward account to a third party collection agency who can even take the debtor or the responsible party to court as the last step if required and approved by the center/creditor, provided the balance if significant.

Summary of Collection Agency’s Services

Collection Letters Service

Upfront cost for 5 Collection Letters is about $15 per account.  Debtors pay directly to you, no other fees. Low cost option.  Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls the debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

Without a proper accounts receivable plan the retirement living centers and senior care centers like Home Instead and ResCare would find their accounts turning red and a reduced cash flow which may impact their daily operations.

Collecting debts is one of the most difficult parts of running a business, especially a small business. Cash flow is important for a company’s vitality. When customers don’t pay, the negative drain on a business’s finances can spill over into other areas, restricting growth and potentially delivering a fatal blow to a struggling company. One of the scariest parts of collecting debts is navigating the bankruptcy process once a business is notified about a debtor’s bankruptcy filing. Part of this process involves understanding the difference between Chapter 7 and Chapter 11 — two of the three main bankruptcy proceedings that can come into play in debt collection.

Understanding how bankruptcy works

Bankruptcy is a legal proceeding to eliminate, modify, and manage debt. In most cases, a debtor (someone who owes money to another) voluntarily files bankruptcy to obtain protection in the debt collection process. Bankruptcy filings can also be involuntary where creditors request that a person or business enter a bankruptcy proceeding, but this is relatively rare. This component, however, illustrates how bankruptcy is not necessarily a bad thing for creditors, as a bankruptcy proceeding can provide the structure for repayment of debts in many cases. The key to understanding how the bankruptcy of a debtor affects your business is knowing the purpose of different bankruptcy chapters.

Chapter 7: Liquidation

Chapter 7 bankruptcies are liquidations. That means that the purpose is to get a fresh start for the debtor. Chapter 7 involves selling all of a debtor’s non-exempt property (things that a debtor is allowed to keep during insolvency). The sales proceeds go towards paying off debts, following a priority system established in a combination of federal and state laws. If the debtor is an individual (and not a business), there is a system of qualification for filing that must be completed. This “means testing” is intended to weed out individuals who might not understand the bankruptcy process or those who have sufficient assets to pay some or all of their debts.

For individual debtors, it’s common to see filings under either Chapter 7 or 13 of the Bankruptcy Code. Unlike Chapter 7, which is intended to zero-out all “dischargeable” debt, a chapter 13 filing anticipates a repayment plan. Sometimes chapter 13 filings are referred to as “wage-earner” bankruptcies, with the idea that a debtor has gotten in over their head in debt, but need assistance restructuring the debt to allow for the repayment of some or all of the obligations.

If a debtor is a business, chapter 7 is a path for dissolving the business entity and discharging obligations. But, sometimes a business debtor, or an individual who operates a business, might want to keep the business going while restructuring debt. Another chapter of the bankruptcy code permits this course of action.

Chapter 11 Bankruptcy: Reorganization of Business Debt

Chapter 11 is generally the path for business debtors to obtain relief from certain debts, while continuing to operate their business. Chapter 11 often involves a corporation, partnership, or other business entity as the debtor, but an individual can also use this chapter to propose a plan of reorganization to keep a business alive while paying creditors over time. Under chapter 7, certain non-exempt property becomes the property of a trustee for liquidation purposes. For example, if an individual files for protection under chapter 7 while having a large sum of cash reserves in the bank, such as $10,000, the bankruptcy trustee will take control of the cash and distribute it to creditors. Under chapter 11, the debtor becomes a “debtor in possession” and owns and manages assets of the business, much as a trustee would.

How Creditors Should Proceed

If your business received notification that a customer or other party that owes your business money is the subject of a bankruptcy proceeding under chapters 7 or 11, there are a few key steps for ensuring that you are protected to the fullest extent of the law. The notification will usually be in the form of a notice of filing received in the mail. It is crucial to know that bankruptcy filing creates an “automatic stay.” This is a legal concept that halts collection most collection activities directed at a debtor. It will stop, at least temporarily, your ability to collect. If you are suing a debtor in state court, your lawsuit will be halted. The automatic stay happens immediately upon filing, so even if you don’t yet know about the filing, it may affect your activities regarding the debt.

Because of the automatic stay and potential liabilities for violating it, businesses should consult with legal counsel about how to proceed in the bankruptcy action. There are methods for lifting the stay, such as in the case of enforcing certain liens, such as a mortgage lien.

It is important for a business to make sure it can substantiate the amount owed, as documentation and payment records may be scrutinized in bankruptcy court. Creditors are also allowed to obtain information directly from the debtor in a meeting, called the meeting of creditors, where the debtor must appear. While many creditors skip attending these meetings, it can be a source of information on how to best get paid.

In addition, creditors should obtain a full copy of the bankruptcy petition. There may be information contained in the filing that is inaccurate and contradictory to your records. As a creditor, you have the ability to object to the discharge of debts under certain circumstances.

While bankruptcy may seem like a scary topic for business owners, it can light a clear path to repayment. With some understanding about the process, business creditors can quickly determine the effect of the bankruptcy filing and protect their rights.  

If you are looking for a debt Collection Agency: Contact us

Receiving payments from clients is a crucial part of creating and maintaining positive cash flow in any business. However, a business income stream can quickly get out of balance when clients – whom you’ve delivered top-notch work in a timely and professional manner – decide not to pay their invoices.

When clients cannot settle their accounts, the business makes less profit, incurs losses and may even have to raise prices to break even. If there are too many delinquent accounts, reaching your break-even point might become a struggle.

Unfortunately, when most clients are having financial trouble they most likely will not disclose this fact to the companies they are doing business with. Instead, they just refrain from paying their invoices. In this article, I’ve put together a list of 12 telltale signs that your client is under financial distress.

1. There’s no contract in place.

It is pertinent to have a contract in place when working with clients. A contract is a binding agreement that holds the client liable to pay all funds they owe a business. Furthermore, a contract is advantageous should you decide to take legal action against non-paying clients.

2. The Client wants to use checks as its sole payment method.

For a business, accepting multiple types of payments is beneficial and aids in getting paid faster. Companies should, therefore, be wary of clients who demand to use checks as their sole means of payment. Paper checks give clients who had no intention of settling their account leeway to be fraudulent since paper checks allow clients to establish their grace period or keep writing bad checks. This means that you will probably never receive your money.

3. Inconsistent payments and deadline extensions.

One of the most obvious signs that your client is having financial trouble is that their payments become inconsistent and they are constantly asking for deadline extensions. You may find that you are starting to receive only part of the payment of your invoices on one date and the remaining parts on another date. This is usually a clear sign that your client is having financial trouble.

4. The company is becoming contentious.

Healthy cash flow is what keeps every company afloat. Clients who are experiencing financial stress will do anything to survive including becoming contentious. They might look for any excuse to not pay up or complain about your service for no reason at all. In actuality what they’re trying to do is delaying payment or even completely avoid payment to ease their financial stress.

5. Fishy contact information or becomes unreachable.

Perhaps the worst type of non-paying clients is the crooks whose intentions were to not pay you from the start. These are the types with unprofessional or spammy looking email addresses or are constantly changing numbers to become unreachable to people they owe. 

6. The checks keep bouncing and changing banks.

One surefire red flag is when clients keep changing banks, and their checks keep bouncing. It is not unheard of that a check sent by a client bounced or that they switched bank once in a while, however, if that keeps occurring it is a good indication that they are in financial trouble and cannot settle the account.

7. No accounts payable contact person or department.

If your client is a solopreneur or small business, they probably don’t have an accounts payable department. This can be a concern since your bill can become a low priority to them. It is therefore always best to make sure you’re dealing with a real company that will not sway from paying their bills on time by having an ironclad contract on hand.

8. Profits are plummeting or layoffs.

For a company to survive long term, it needs to be profitable, thus you need to keep a watchful eye on your client’s profit margin. This can be difficult to spot, but one surefire way to tell is if the company is constantly laying off staff. You can also look for other evidence such as the profit-margin ratios of what might be happening to profits to get a glimpse of your client’s profit margin.

9. Declining reputation or a bad news/scandal in the company.

How many big names and long-established businesses have we’ve seen fall because of a bad reputation, continuing bad press or a damning scandal in the company. Nowadays people no longer share their displeasure with a customer service department; they vent on social media for thousands to see. Bad press and scandals will tremendously affect a company’s reputation. As a result market shares can decline, which will lead to financial difficulties and the increased risk that they won’t be able to pay invoices on time.

10. Making repeated and inconsistent excuses

If you have a client that repeatedly makes excuses and is constantly asking to extend the deadline, then there’s a good chance that they’re experiencing financial troubles. It is best to stop working with this client immediately.

Key points to keep in mind to ensure that your invoices are paid

To ensure that your invoices are paid, there are three key points you should keep in mind at all times:

1. Be selective about your clients: before you start working with a client, it is always best to do a background check to spare yourself the unnecessary headache if it turns out that the client is experiencing financial distress.
2. Always request a percentage upfront: One way to vet your clients is by requesting to receive a percentage of the payment upfront. Most companies that are financially stable won’t object to this request.
3. Take legal action: If all else fails and your client still turns out to dodge what they owe you, You can always take legal action.

Conclusion:

When working with clients, your priority is to get paid as much as you can as quickly as possible. Check the above-mentioned list to find out if a company is experiencing financial trouble or not. Remember, sometimes, taking a reduced amount now could be a better option than hanging on for full payment later, which never arrives.