Medical debt is different from credit card or loan debt because you don’t take it on by choice, but does medical debt go away, as some people believe? While it may no longer show up on a credit report after seven years, that doesn’t mean the balance disappears.
Let’s take a closer look at what happens if you don’t pay medical bills.
Does Medical Debt Go Away? The Short Answer
The short answer is that medical debt rarely just goes away. It may eventually come off your credit report, but that doesn’t automatically mean you don’t owe it.
Does Medical Debt Fall off Your Credit in 7 Years?
Does medical debt disappear after 7 years? Legally, collection accounts and other derogatory marks on your credit report must be removed after seven years. However, removing a debt from your credit report isn’t the same as forgiving it.
Importantly, the three major credit bureaus (Experian, Equifax, and TransUnion) no longer include unpaid medical debts under $500 on credit reports. They usually also wait 12 months before putting past-due medical debt on your credit report.
Notably, unlike other kinds of collection accounts, medical debt in collections typically disappears from your credit report once you pay it.
Does Medical Debt Go Away After 7 Years, and What Actually Changes at That Point?
It’s a common misconception that medical debt automatically disappears after seven years. In reality, the debt itself usually still exists unless it’s been paid, settled, forgiven, or discharged through bankruptcy.
What typically changes after seven years is how the debt is treated for credit reporting purposes. Once eligible collection accounts are removed from your credit report, they generally no longer affect your credit score.
However, removing a debt from your credit report doesn’t necessarily erase your legal obligation to pay it or prevent a debt collector from contacting you about the balance.
Does Medical Debt Go Away or Fall Off Your Credit Report?
Do medical bills go away? Unless it’s been written off or forgiven, medical debt rarely just disappears. However, over time, it may no longer affect your credit or be legally enforceable. Creditors and debt collectors have two primary ways to encourage repayment:
- Reporting collection accounts to the credit bureaus
- Filing a lawsuit to collect the debt
Collection accounts generally fall off your credit report after seven years, so they can no longer affect your credit score. However, that doesn’t automatically prevent a debt collector from contacting you or trying to collect the debt.
Whether a creditor can sue you depends on your state’s statute of limitations, which sets the deadline for filing a debt collection lawsuit. In many states, that deadline is four to six years, meaning the right to sue expires before the debt falls off your credit report.
In other states, however, the statute of limitations is longer. For example, Missouri allows creditors up to 10 years to file a lawsuit, so a medical debt could be removed from your credit report yet remain legally collectible through the courts.
Medical debts often become uncollectible over time, but many people don’t know that you can unknowingly reset the statute of limitations. If a creditor contacts you about an old medical debt and you make any payment (even a small one) toward the account, the statute of limitations is turned back to zero, and the collector will likely have several more years to sue for the debt.
Does Medical Debt Ever Get Written Off?
It may be possible to get medical debt written off, but you usually have to take deliberate steps. Many hospitals (and some doctors’ offices) have “charity care” programs. If you meet low-income qualifications, your entire debt (or some of your debt) could be forgiven.
Many hospitals and medical practices don’t advertise their charity care programs, so you may have to ask about them. If you go this route, it’s often best to do it sooner rather than later. In many cases, you have to apply within a few months of receiving care.
Even if your provider doesn’t have charity care, it’s worth asking about payment plans if you can’t pay the debt in full. A payment plan may help you avoid the stress and credit damage that come with having medical debt in collections.
Do Medical Bills Eventually Disappear?
Does medical debt go away on its own? It seldom disappears, but you might reach a point where it no longer shows up on your credit report. Before you make any decisions about past-due debt, make sure you’re familiar with your state’s debt collection laws and the potential consequences of having medical debt in collections.
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