Expert: Chris Ebert - 11/21/2011

Question
My credit report shows a medical debt from 2007.  It is my understanding that in California that the statute of limitations on Medical Debt Collections is 4 years, which has passed.  Does this indicate that the collection agency (who has not contacted me in 2 years) has no legal basis to sue me?  

Earlier this year, I negotiated a lower amount owed directly with the original hospital/creditor based on their sliding scale, however have no means to pay even the reduced rate.  I have not signed any agreement that I will pay a reduced rate.  Has the 4-year statute of limitations affected by the communications with the hospital?  Am I off the hook for this bill?

Answer
Charles,

I believe the statute of limitations of when they can sue you has passed according your dates. It often based on the date of last payment rather than last communication.

However, they can still report the debt on the credit report for up to 7 years.

Chris