Q: Just received a civil suit for an unpaid medical bill. is it too late to try to make payment arrangements?

A: Nope. Its never too late, even after judgment has been entered. The real question is why would you make payment arrangements? Whether you need to make arrangements or not should be discussed with legal counsel. I have found that it is seldom a good idea for a client to make arrangements to pay a debt. A client will be much further ahead financially by paying that money to themselves and trying to resolve the debt at some point rather than make payment arrangements. However, this depends on your situation, what assets you have and your sources of income.

Before you pay, you need to get some written document by which the law firm representing the creditor promises not to seize assets or your bank account for so long as you make payments.

Also, once litigation is filed, it will be very unusual for a creditor to dismiss the lawsuit unless you are paying a lump sum in resolution of the debt. More likely will be that the creditor will want you to sign what is called a consent judgment where you will consent to entry of judgment against you but the creditor promises not to execute so long as you make payments.

If nothing is worked out, then you need to take steps to protect yourself. You can have no more than $300 in any one bank account if you work and do not have exempt income like Social Security.

Again, you are making a big mistake by trying to make payment arrangements without consulting a lawyer about your situation first.