How badly will unpaid medical bills effect your credit?

Question

A few years ago I had surgery. I had a herniated disc in my back for years, then when I graduated and was cut off my parents' insurance my Dr. decided that I needed an operation. A lawyer told me that it would probably still be covered because it was a pre-existing injury and I wouldn't have to pay. This wasn't the case and I now have $15,000 worth of unpaid bills. I had already bought a house and new car with my fiance, and can't afford to make any extra payments. My credit is not good. I was told that the score is fine but it looks as if I have $15,000 worth of bills due every month, and I never pay them.

Should I declare bankruptcy? What will look worse in about 8-10 years when I try to buy another house or car; having a bankrupcy on my record or having the unpaid bills still there? Even if i did try to pay them off it's gonna take at least 5 years and I'm told it will still show up badly for years afterwards.

Answer 1

If these medical bills are a few years old, they are undoubtedly with collection agencies now. Are they hounding you?

Negatives fall off your credit report 7 years and 180 days from the default date. Nothing can re-start the reporting period. The older the debt, the less impact on your credit score.

The second thing to determine is the Statute of Limitations (SOL). This is the time frame to bring suit. The clock starts from the last transaction or payment, whichever is later. It varies from state to state. Payment restarts the SOL. In some states promise of payment will restart the SOL. Check the SOL in your state: http://www.fair-debt-collection.com/SOL-by-State.html

If you are past the SOL, you can use that as an affirmative defense if they sue you.

If the collection agency now owns this debt, and they probably do, you can make a settlement offer of half or maybe less. Lump sum gets the best deals. Payment plans need to be short term. Get any settlement agreement in writing before paying and don't give them access to your bank account. As part of the agreement, you can ask the negative be deleted from your credit report -- some will, some won't.

Answer 2

You probably can make a deal with the hospital. They would rather get paid a smaller amount than nothing at all. They might accept 1/4 or 1/3 of the original amount. You should know that when they bill insurance, they are not paid the full amount that they billed for. I was in the hospital once for intestinal infections and my bill was over $2,000 for one day. I didn't have insurance and I negoiated with them. They settled for $600, to be paid over a 3 month period. They said that was what insurance would have probably paid. Give it a shot, the worst that can happen is they say no. But remember, don't screw up your credit. Even if you pay $40 a month, it shows creditors that you are willing to work it out. Good luck!

Answer 3

Unpaid scientific expenses can have an impact on your credit score simply as unhealthy as any invoice you do not pay and it is despatched to collections. And what makes issues worse is that it is going to handiest file with one company, making it that a lot tougher to identify except you are enrolled in a credit score tracking application. And it could possibly have an impact on different money owed you may also possess, as thecompanies no longer handiest watch your credit score most often to assess line raises, however to cost what is known as the "common default fee" which is able to carry your curiosity premiums to just about 30% in a few instances.

Answer 4

well, that depends. see if you can cut a deal with the creditors... otherwise, just let the clock run out and the debts will drop off your credit report in time.

Answer 5

it does have a big effect on your credit i try to get a mortgage and it won't go through because of my hospital bills