Medical Debt Statute of Limitations in California

Are you being sued for medical bills and wonder whether the medical bills are within the statute of limitations for California?

It is important to determine how old these medical bills are. 

Why? 

Because the debt may be outside of the statute of limitations in California, which means that the creditor cannot sue you for the unpaid debt. If it's within the statute of limitations, you may want to resolve it quickly to the hospital working with a debt collection agency to sue you for a judgment to attempt to garnish your wages.

You may be wondering when the California statute of limitations begins. Does the statute start on the date you went to the care center, got the bill, the date of the bill, etc?

Per CCP §337, medical debt statute of limitations in California is 4 years and begins from the last payment activity or the date on the bill.

Here's the specific legal text:

Be sure you know your rights when it comes to hospitals garnishing your wages.

Every state has a different statute of limitations on written and oral contracts.

A written contract is any debt that comes with a contract signed by both you and the creditor.

Oftentimes, a written contract will include the terms and conditions, like the monthly payment and the total amount.

Doctors and hospitals typically don’t report late payments directly to credit bureaus, but they may eventually send past-due accounts to outside collection agencies. If patients can’t pay the bill, the bill collectors may report the debt to the credit bureaus. The debt can then tarnish patients’ credit files and potentially their credit score, which is calculated based on information in the report.

Hospitals typically are not the ones reporting late payments directly to credit bureaus. However, as time passes, they may send past-due accounts to third-party collection agencies. If the debtor still is unable to pay the medical bills, the third party may report it to the credit bureaus. 

Use our free California Medical Debt Statutes of Limitations Calculator below to see if your medical debt is past the statute of limitations. 

Let's consider your California debt relief options. One option is to write a medical hardship letter. However, sometimes other measures need to be taken, so we will discuss other options. 

Just for context, there are pros and cons to each debt relief option, so be sure to consider everything before taking action. Check out the debt relief calculator below to understand the specific options including payment estimates and pros and cons. Read the information below the calculator for additional information.

First of all, before entering into a debt relief or California debt relief program, make sure that you have a legitimate medical hardship. If you get into unnecessary debt (like getting state-of-the-art electronics or luxury cars) to get into a debt relief program, most debt relief companies will avoid you like the plague and it might be termed as a fraudulent action. As a means of debt relief, debt settlement is highly beneficial for people who are struggling to meet their medical bill obligations. But there is a catch- you have to accept that the debt is valid. If you dispute the debt or think that the way the debt accumulated was unfair, then you don’t qualify for debt settlement.

People who have medical debts, no source of income, have lost their jobs, and have no financial support are suitable candidates for debt relief. You’ll want to compare debt settlement vs bankruptcy and debt management vs debt settlement to make sure you make the most informed decision when deciding on debt settlement. You will also want to learn about debt settlement tax implications, credit score impact, and lawsuits.

A debt management plan is a debt relief option that helps people reduce their unsecured debt; in this case, medical debt, and regain financial control. After you enroll in a debt management arrangement, you have to make predetermined monthly contributions to a credit counseling company. These monthly contributions are determined by what you can comfortably afford. In most cases, the monthly amount results from an analysis comparing your household expenses against your earnings (income).

For many people overwhelmed by medical bills and debts, the most commonly asked question from them is whether they can file for medical bankruptcy without all the other debts coming up. While you can easily file for bankruptcy in California due to medical debt, the chances of the other debts that you have incurred arising are pretty huge.

The common forms of bankruptcy are the Chapter 7 bankruptcy in California and the Chapter 13 bankruptcy in California. There are major differences between both options, but Chapter 7 is often much faster and much less expensive although you may have had to qualify via the bankruptcy means test where your household income is below the state's median income level defined by household size. 

If you have questions about the medical debt statute of limitations in California, debt collection lawsuits, or any other debt questions, please feel free to contact Ascend at 833-272-3631.

We offer complimentary debt evaluations to help you understand your options when facing crippling medical bills. Let’s work together to find the best solution to your debt problems.