I owe $5259.43 from a hospital bill 3 years ago. The collection agency took me to court and being the nervous wreck that I was just signed the papers stating that I would pay the total amount in monthly installments of $75.00. After talking with a few people they said I should have settled for a percentage.

My question is: Is it too late to call and settle for a lump sum? If I offer this how likely are they to accept it? If I offer say $1500.00 and they refuse will they expect me to pay that amount anyway towards the 5259.43 that I owe?

Any help would be greatly appreciated I am strictly in hospital bill debt and avoid credit cards like the plague so this is tearing me apart.

I forgot to add that the $1500.00 is strictly hypothetical, I do not know what would be an acceptable percentage to offer.

Luckily you live in a Florida which is considered a "Creditor Friendly" state! You still have the time to negotiate your debt even if you signed a court document. They would rather have a bulk of the money up front (3 years later) than $75 a month for the next 70 months or longer if the account is still being charged interest and penalties (read your paperwork) and if that is the case... well you are right back where you started. Just like when you are buying a car always start low and then come up until they will accept.. also send to the creditor your story of how and why you are in debt... some of them actually do care and will work with you in some situations... there is still hope!

It doesn't hurt to ask. Generally they will prefer a lump sum to a negotiated payment plan, so they may give you a discount. But don't expect too much since they have a signed agreement to pay.