When you have a mountain of medical debt, it can feel as though there’s no way out of it. However, there is something known as the statute of limitations that disallows a creditor to sue you for certain types of debt, including medical bills. Read on to learn more about the statute of limitations in California and then schedule a free legal consultation to find out more about your options.
What happens if a creditor doesn’t file within the statute of limitations?
If a creditor wants to collect a medical debt then they are required to sue before the statute of limitations runs out. If the creditor doesn’t sue by that time, then the claim will be time-barred. This means that the creditor can’t file a lawsuit. While this seems like a great strategy – just wait out the creditors – there are several reasons that it’s not the most practical or efficient option.
How long can a medical debit collector come after you?
There isn’t a short and sweet answer to this question. It depends on numerous factors, including where you incurred the debt. In most cases, the answer lies between one to six years. In California, the relevant statute of limitations is for breach of written contract. This is usually four years. The date that this statute of limitations starts running is either when the most recent payment was due or the date that you stopped paying on the debt – whichever was last.
There are laws that protect you from predatory debt collection tactics
Whether you’re still within the statute of limitations or have passed it, there are some tactics that debt collectors simply aren’t legally allowed to take part in. They include calling you frequently just to annoy or distress you, using bad language, making threats, or pretending that they’re bankruptcy lawyers, government representatives, or representatives of a credit reporting company.
Get help determining if it makes sense for you to file for bankruptcy
You can wait for the statute of limitations to expire but this is rarely the right strategy. For one, it can take years. Second, while you’re waiting, that debt will keep affecting your credit score. This can bring down your entire financial situation.
If you have medical debts and you know you can’t afford to pay them then it may be a good time to file for bankruptcy. Depending on the debts, you may be able to wipe them out and get started on repairing your credit. As soon as you file for bankruptcy, you’ll be protected under what are known as automatic stay laws. This means that your creditors cannot legally continue collection actions while you’re in bankruptcy.
Every case is different. Chapter 7 or 13 bankruptcy is often the best way to reset your financial future. However, it may not be the best option for you. To get honest advice on your specific situation, call The Law Offices of Paul Y. Lee at 951-755-1000. We’ll start you off with a free bankruptcy evaluation. Call us today!
