Is there a statue of limitation on how long a company is allowed to collect on you for a medical bill?

Question

The collection company said it was just sold to them to collect on. It's been 5 YEARS! They said that the hospital never made an attempt to collect on it and just sent it to them.
It really sucks because 3 years ago I took out a loan and paid all my medical bills off that were in collections and such and I thought the nightmare was finally over.

I'm in the state of Nevada

Answer 1

Here's a link that gives you the statute. You'll have to look up your state. If the hospital never billed you, I can't see how it's a valid debt in the first place. You should also ask for proof that the hospital has not been paid by taxpayers. All 3 of our major hospitals (trauma centers) get funded annually to cover non-payments. I would say don't pay on it until you get a lot more info.

http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml
http://www.cardreport.com/laws/statute-of-limitations.html

Answer 2

In the State of Nevada, the statute of limitations will expire 6 years from the date the debt was incurred, or the date you made your last payment on the debt, whichever is later. That is because this is a hospital debt, and undoubtedly you signed something agreeing to be responsible for the debt at the time of treatment. An action founded upon an instrument in writing must be commenced within 6 years. So, they have one year in which to file a complaint against you, unless you have made any payments to them.

P.S.--In response to some of your responders who seem to think that the selling of the debt begins the tolling of the limitations period anew, they are WRONG! An individual (or company, as may be the case) can only assign whatever rights it has. Therefore, when the collection agency assumed the right to collect the debt, they assumed it under the same limitations. The right to sue you for the debt, no matter who holds the paper, will expire 6 years from the date the debt was incurred or the last payment on the debt was made, period.

Answer 3

The SOL varies from state to state, but it has nothing to do with collections. What it does is say that they can not SUE you to collect the debt after a certain amount of time passes.

For example, the SOL for medical bills in Indiana is 6 years (they are considered open accounts - this came straight from the medical billing company). So, 6 years after the service was done, or the last payment was made, they can not take you to court to collect. The can continue to ask for payment, but if you don't pay, there isn't anything that they can do about it legally.

And selling the debt to another collection agency does NOT start the SOL again. The only way to do that is to either make a payment, or promise to make a payment.

Answer 4

That sucks. You can try contacting an attorney, as it was not right that the hospital made no attempt to collect, and you MIGHT get off. That said, if you owe the money you owe the money. There really is no statute of limitations on a debt. Your legal argument would not be that you didn't owe the money, but that the hospital unfairly failed to notify you. You can't pay money if you don't know you owe it. That said, if they so much as sent you a single letter and can prove it, that argument is not going to fly and you'll be wasting money on legal fees that you could be using to pay off the bill. It doesn't hurt to get a consultation with an attorney, however, to find out where you stand. Good luck!

Answer 5

It actually depends on what state you are in. The statute of limitations for collecting a debt is usually anywhere from 4 to 7 years. Most states have a website or a link on their legislature page that contains all of the codes and laws for that state. Then you can search by terms like "statute of limitations + debt collection" If you want to add to your question the state you are in, I can help you look it up. (I have been a Paralegal for years and am about to start law school). I do know that once something is on your credit report it can take up to 7 years to come off, unless you hire someone to help you clean it up.

Answer 6

Generally speaking, a person usually signs a document when they receive medical services which states that they will pay that portion of their bill which is not covered by insurance. This, then, constitutes a written contract. Although the statute of limitations for collection under a written contract varies from state to state, it is generally ten years.

Answer 7

There is a statue of limitation depending on state. However, there is no law that says they can't "sell" your debt. When they "sell" it the company pays the reall people you owe and take on the debt to collect it. This makes it a new debt since it is now a new company you owe. Then they have as long as the statue allows but then can seel it again. Basically you could never get rid of it until it is paid. If you did pay it show the proof that it was paid and they can no longer collect.

Answer 8

It's about six years in most states. Do you have a receipt for your prior payment? Try to find that, or ask your bank to look up a copy of the cancelled check. Provide a copy of that, front and back, and provide it to the collections agency. Hopefully, that should clear things up.

Answer 9

if it's not paid off they can collect it until it is paid. if you paid it off and have proof you need to provide that to the collection company. i work at a mortgage company and sometimes people have 15 year old collections that they never paid on their credit.

Answer 10

Yes, but it varies from state to state.

The key is not to acknowledge the debt or make a payment on it, because that resets the clock.