CKMS Debt Collection: How to Respond and Settle in 2025
CKMS won't disappear unless you force verification, negotiate a settlement, or file an Answer if sued. If you're buried in medical debt, bankruptcy might be faster than fighting each collector individually.
File Your AnswerCentral Kentucky Management Services contacted you about an unpaid bill. Maybe it's a hospital charge you thought insurance covered. Maybe it's legitimate. Maybe it's not.
CKMS collects medical debt for the University of Kentucky hospital system. If they're calling, you need to act. Ignoring them invites a lawsuit. Paying without verification could mean settling a debt that isn't yours.
Here's what to do next.
What Is CKMS?
Central Kentucky Management Services operates out of Lexington, Kentucky, at 2317 Alumni Park Plaza #200. Their phone number is 859-276-1561. They collect unpaid medical debt exclusively for UK Healthcare and related entities.
Unlike third-party debt buyers who purchase old accounts for pennies on the dollar, CKMS works directly for the hospital. That means the debt is likely recent and still owned by the original creditor. It also means they have more flexibility to negotiate.
Is CKMS Legitimate?
Yes. CKMS is a legitimate corporation tied to the University of Kentucky. You can find their financial reports on the university's website.
That said, legitimacy doesn't mean accuracy. Medical billing errors are common. A 2020 study found that 80% of medical bills contain mistakes. CKMS could be chasing a balance your insurance should have covered, a duplicate charge, or a service you never received.
As of early 2025, CKMS has minimal consumer complaints with the Better Business Bureau and Consumer Financial Protection Bureau. That's better than most collectors. But you still need to verify before you pay.
Your Rights When CKMS Calls
The Fair Debt Collection Practices Act protects you from abusive tactics. CKMS cannot:
- Call before 8 a.m. Or after 9 p.m. Your time
- Contact you at work if you tell them not to
- Discuss your debt with family, friends, or coworkers
- Threaten arrest or legal action they don't intend to take
- Use profane or harassing language
- Refuse to send written validation of the debt
- Continue calling after you send a cease communication letter
If CKMS violates these rules, report them to the Consumer Financial Protection Bureau at 855-411-2372 or through cfpb.gov. You can also file a complaint with the Federal Trade Commission.
Document everything. Note the date, time, caller's name, and what they said. If they cross the line, that record becomes evidence.
Step 1: Demand Debt Validation
When CKMS first contacts you, they must send a validation notice within five days. This notice should include:
- The amount owed
- The name of the creditor (likely UK Healthcare)
- A statement of your right to dispute the debt
- Information on how to request verification
If you didn't receive this notice, request it in writing. Send a debt validation letter within 30 days of their first contact. This forces CKMS to prove you owe the debt before they can continue collection efforts.
Mail your letter certified with return receipt. Keep a copy. Use this template:
"I am writing to request validation of the debt you claim I owe. Under the Fair Debt Collection Practices Act, please provide documentation showing I am legally obligated to pay this amount. Until you provide this validation, cease all collection activities."
Once CKMS receives your letter, they must stop collection until they send proof. If they can't verify the debt, they're required to drop it.
Step 2: Review Your Medical Bills for Errors
Medical billing is a mess. Before you negotiate, check for these common mistakes:
- Duplicate charges: You were billed twice for the same procedure
- Upcoding: A provider charged for a more expensive service than you received
- Balance billing: The hospital billed you for the difference between their fee and what insurance paid (often illegal)
- Incorrect insurance information: The claim was denied because the provider used the wrong policy number
- Services you didn't receive: You were charged for tests or treatments that never happened
Request an itemized bill from UK Healthcare. Compare it to your insurance explanation of benefits. If something doesn't match, dispute it with both the hospital and CKMS.
Step 3: Negotiate a Settlement
CKMS would rather settle for 40% of the balance than chase you through court. Start negotiations by offering 30-50% of the total as a lump sum. If you can't afford that, propose a payment plan.
Before you pay anything:
- Get the settlement offer in writing
- Confirm the agreement states "paid in full" or "settled in full"
- Never give CKMS access to your bank account
- Use a cashier's check or money order, not your debit card
Once you settle, CKMS should stop reporting the debt to credit bureaus. If they don't, you can dispute the tradeline and force removal using your settlement agreement as proof.
Not sure where to start? Check if bankruptcy makes more sense before you commit to a settlement you can't afford.
Step 4: File an Answer if You're Sued
If CKMS files a lawsuit, you have 20-30 days to respond depending on your state. Miss that deadline and you lose by default. The court will grant a judgment, and CKMS can garnish your wages or freeze your bank account.
Your Answer is a formal response to the lawsuit. It should:
- Admit or deny each allegation in the complaint
- Raise any defenses (statute of limitations, lack of standing, improper service)
- Request proof of the debt
You don't need a lawyer to file an Answer, but you do need to follow your court's format rules. Many states let you file online through the clerk's office.
Once you file, CKMS will likely reach out to settle. Most debt collectors avoid trial. Court costs more than compromise.
If you're facing multiple lawsuits or the debt is overwhelming, bankruptcy might stop the case immediately through an automatic stay.
What Happens if You Ignore CKMS?
Ignoring a debt collector doesn't make the debt vanish. Here's what CKMS can do:
- Report the debt to Equifax, Experian, and TransUnion, tanking your credit score
- Sue you in civil court and win a default judgment if you don't respond
- Garnish up to 25% of your disposable income (less in some states)
- Place a lien on your property
- Freeze your bank account
Medical debt under $500 will no longer appear on credit reports as of 2023, thanks to new rules from the credit bureaus. But that doesn't stop CKMS from suing you. And a judgment shows up on your credit report for seven years.
Can You Stop CKMS From Calling?
Yes. Send a cease communication letter. Once CKMS receives it, they can only contact you to confirm they're stopping collection or to notify you of specific legal action like a lawsuit.
Mail the letter to their address: Central Kentucky Management Services, 2317 Alumni Park Plaza #200, Lexington, KY 40517. Send it certified mail so you have proof of delivery.
A cease letter doesn't erase the debt. It just stops the calls. CKMS can still sue you. If they do, you'll need to respond in court.
Does CKMS Report to Credit Bureaus?
Yes. Unpaid medical debt over $500 can appear on your credit report and stay there for seven years. That's true even if you're disputing the debt.
If CKMS reports inaccurate information, dispute it with the credit bureaus. Under the Fair Credit Reporting Act, they must investigate within 30 days. If they can't verify the debt, they're required to remove it.
You can file disputes online with Equifax, Experian, and TransUnion. Include copies of your settlement agreement or validation letter as evidence.
When to Consider Bankruptcy
If CKMS is one of many creditors calling, or if you're drowning in medical bills, bankruptcy might be the fastest way out.
Chapter 7 wipes out medical debt in about four months. You don't have to negotiate. You don't have to pay anything. The debt is gone.
Chapter 13 lets you pay what you can afford over three to five years, then discharges the rest.
Bankruptcy stops lawsuits, wage garnishments, and collection calls immediately through the automatic stay. See if you qualify in under two minutes.
The Bottom Line
CKMS isn't going away unless you make them. Verify the debt, check your bills for errors, and negotiate a settlement you can actually afford. If they sue, file an Answer. If the debt is one of many dragging you under, bankruptcy might be the cleanest exit.