Legal Question in Credit and Debt Law in Virginia

Re: Medical Billing

A creditor cannot force you to accept their repayment proposal. However, you cannot force them to accept your payment proposal.

If both parties do not agree to a repayment plan, the creditor will likely file suit, obtain a judgement and then garnish your wages or levy on your bank accounts or other assets.

If you cannot reach agreement with the creditor, you should immediately consult with an attorney, preferably a bankruptcy attorney.

Re: Medical Billing

There are no such rules in either direction to my knowledge, as those you suggest. However, it was not clear whether you have already signed any agreement. Obviously, a signed agreement would control and take precedence over general rules.

It also sounds like the creditor has not yet filed any lawsuit.

However, the incentive for you to enter into an installment payment plan is that the alternative will be a lawsuit in which the creditor can forcibly collect money from you.

And the creditor's incentive to enter into an installment plan is that it is less work.

If you cannot pay more than $70/month, you would be well-advised to PROVE it to the creditor. I have worked as a debt-collection attorney. When someone calls on the phone and says they can't afford to pay more, there is no way to know if they are telling the truth or not. And often they're not telling the truth. So telling them you can't pay more means absolutely nothing. If you can DOCUMENT to them how small your income is or how big your expenses are, they may decide it is not worth pursuing until you get back on your feet. But they're not going to simply believe a voice over the telephone.