Expert: Jason Barnette, Esq. - 9/24/2009

Question
Hello,
I just got a call from a collection agency regarding an un-paid medical bill in the amount of $1,620.

I had completely forgotten about this, no one has called me about this in years. It was from when I was in college and  broke my arm but didn't have health insurance.

The service was performed in December 2002. That means that this December will be 7 years from the date of service.

Since this time, I have really cleaned up my credit and have a really good credit score currently. I was burned before when I paid an over due bill years after it was reported and because I paid it, it refreshed on my report.

So, I am not sure what to do. My question is: Is it better for my credit score to set up a payment plan with them now or to just not pay it?

Also, if I don't pay it what can they do? Can they place a judgment against me?

P.S. I live in Kentucky.

Thank you for you time in advance!

Answer
Danielle:

Since it isn't on your credit reports (from what I understand) I would not run the risk of it appearing and with a new date of last activity by virtue of you paying it.  In other words, I wouldn't advise paying it from a credit scoring stand-point.

Jason Barnette
Barnette Law Offices, LLC
1800 Hayes Street; Suite 122
Nashville, TN 37203
615-585-2245
http://www.barnettelawoffices.com