A collection letter for old hospital debt can look like a serious threat when your only income is a monthly federal benefit, but collectors face a legal wall most retirees never hear about until the money is already frozen.
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Picture a 71-year-old widow outside Peoria opening a collection letter for a hospital bill from a fall two years ago. A neighbor just learned her own medical debt was wiped away. This bill was missed. The letter hints at further action. Her only regular income is the Social Security check deposited into her bank account every month.
The State of Illinois announced in…