Do Medical Bills Expire in Time?
There are a lot of misconceptions regarding medical bills. People ignore them thinking the debt will expire. Ignoring the bill will directly affect your credit score. From state to state, there may be a statute of limitations that determine the timeframe about the collection agencies.
What are Statute of Limitations?
A Statute of Limitations (SOL) is a legal timeframe that is allotted to the individuals by the collecting agencies. That may vary from state to state. You can control how to respond to the agencies, but ill behaviors might make the situations worse.
The Statute of Limitations is not a free ticket to get out of debt. It only protects the patient from legal action, since the unpaid debts affect your credit score. The insurance companies can pay the balance while a civil judgment can decrease your credit score with an increase in time. The worst part is if you file bankruptcy, that will affect your score negatively.
The Seven-Year Rule in Medical bills
Most of the people think, after seven years the medical debts gets eradicated. It is true to some extent. The seven-year rule is applied based on the time frame that stays on your credit. After that, it will not negatively affect your credit score. After seven years, it will no longer harm your score and the medical bills will not reflect. However, you are still in debt. The judgment remains for seven years or based on the Statute of Judgement of the state, be it seven years or more.
A Law That Gives You an Additional Layer?
In 2017, a law was passed that gives 180 days grace period to the patients. During this period the patient has to pay the remaining balance. In case of failure, the result will reflect on your credit score. This gives an additional protection layer. Once the debt is paid, do not forget to report the concerned authority.
A Better Way?
Learn the art of negotiating, it can move you out of debt. There are several ways to negotiate the debts that you owe. There are several medicals items that are sold with an inflated price so make sure that you negotiate the bill amount and bring down the prices. Hospitals can be seen as a business where you can save some decent amount of medical bills. Also, try to negotiate the net amount of the medical bills that will further bring down the debts.
Final Thoughts
If you have money to pay, then it is better to clear all of your medical debts. There are myths and misconceptions about debts getting erased, but in reality you have to face harassing phone calls. Keep your credit score active and healthy. If you don’t have enough funds, it’s better to clear those debts to some extent, and when you are competent enough, pay all your debts at the earliest.
