The onset date for civil, medical debt Collections statute of limitations depends on several factors. When a collection is placed, it becomes a debt under the statute of limitations. This immediately makes the case for urgent and requires prompt action in order to prevent the pendency of the case. The statute of limitations for medical debts is the date of the last payment made by the account holder to the collection agency. This begins with the clock ticking but creates opportunities to unintentionally reset this important legal protection against creditors’ lawsuits. The laws are different in every state. It is a good idea to consult with a certified public accountant or tax consultant in order to determine the applicable statute of limitations in your state.

Medical bills cannot be discharged via a bankruptcy and therefore must be recovered via a debt collection agency. Filing a bankruptcy is not only expensive but time consuming and may have negative consequences in the long run. In some instances, the bankruptcy is invalidated because the statute of limitations for filing was not met. In other states, collection agencies may not pursue an account once a bankruptcy has been filed. Many collection agencies have a limited time frame in which they may commence collection action against an account. This limitation can vary from one state to another. For example, in California, collection agencies must commence legal proceedings within three years after the debt is accrued. However, just because a statute of limitations exists does not mean that a collection agency can simply ignore a medical bill and not pursue it. Medical bills are often sent to collection agencies before the debt is paid. Thus, even when the statute of limitations runs out, collection agencies may still pursue pursuing the account.

Collection Agency And Statute Of Limitations On Medical Debt

When looking for a medical debt collection agency, always look for a business with experience and a good reputation. A good agency will be familiar with the nuances of both state and federal laws. They will also understand the value of prompt communication and will work with you from the initial idea to the settlement of any outstanding bills. Look for a company that will provide you with on-time and courteous service, one that will review your case and work with you to achieve the best possible settlement, either through negotiation or by adding the item to the list of medical bills covered by the agency and re-aging the collection to show that it is paid. Remember, if the collection agency fails to honor a debt it is up to the patient to seek the help of the appropriate authorities. 

If you need legal advice regarding medical bills or other issues pertaining to your health care, make sure to look for a qualified attorney. Also, look for a business that will monitor your case and act quickly if you do not receive the benefits of a settlement. Many states have statues of limitations which dictate when medical bills become due. However, the statute of limitations in each particular state can be different. It would be a good idea to consult with a qualified bankruptcy attorney to find out your state’s rules regarding medical debt collections.