By Steve Rohde
Gannett News Service

Question: I have a question regarding a medical bill I have not paid. It is for an MRI. I am already deep in debt and, when I went in to do the MRI, I never signed the paper they give at intake, in which the patient assumes financial liability, because I was too afraid of what the cost might be.

Now they are sending me a bill for the $350 that the insurance company didn't pay. Since I never signed the paper assuming financial responsibility for the services, am I legally responsible for this debt?

Answer: You most likely are responsible for the bill. Even though you didn't sign the agreement, by undergoing the MRI, you probably gave implied consent to take financial responsibility.

Contact your state attorney general's office, or an attorney, for a definitive answer. If you are liable, work out a payment arrangement as soon as possible to avoid further penalties.

Q: I have a motorcycle and never finished paying the loan. I want to pay it off and have been working a part-time job to get the money together to do that.

I have several questions. Can I negotiate the payoff? If I do, how do I know that the bank will not just take my money and say I owe them more penalties and back interest? How do I know they will release the lien and allow me to get the title? The loan is through an out-of-state bank.

A: This is a touchy situation and your best bet would be to contact an attorney in your area who can contact the bank on your behalf.

When you defaulted on that loan, your bank had a right to take your motorcycle. But if you left the state where you got the original loan, they may not have been able to find you.

Your lender may not let you reinstate the loan if you left the state without notifying them. You will have a better chance of keeping your motorcycle if you have enough money to pay off the loan completely. Still, the bank may be willing to negotiate.

If you do negotiate a settlement that is less than what you owe the bank, realize there are a couple of consequences.

First, if the amount forgiven is greater than $600, your lender must report it to the IRS on a Form 1099 as "Miscellaneous Income" and you must pay taxes on that amount. Secondly, the amount that your lender forgives can be reported on your credit report as a bad debt, and that comment will remain on your report for seven years.

Tip: The strongest reference on a credit report is a major credit card, paid on time, over time.

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Send questions or comments to questions@SteveRhode.com. Steve Rhode is a money coach, president of Steve Rhode Inc. and co-founder of the nonprofit consumer education group www.Myvesta.org.