There may appear to be no way out of a pile of medical debt when you are drowning in it. To avoid being sued for some sorts of debts, such as medical expenses, there is something known as the statute of limitations that prohibits a creditor from taking legal action against you. To understand more about the statute of limitations in California, continue reading, and then contact The Law Offices of Paul Y. Lee at 888-748-0025 to book a free legal consultation to learn more about your legal options.
The consequences of failing to file within the statute of limitations are significant.
If a creditor wishes to collect on a medical debt, he or she must file a lawsuit before the statue of limitations expires. If the creditor does not file a lawsuit within that time period, the claim will be considered time-barred. This means that the creditor will be unable to bring a lawsuit. While this appears to be a sound plan – simply waiting out the creditors – there are a number of reasons why this is not the most practical or efficient approach in this situation.
How long does it take for a medical debt collector to pursue you?
It’s impossible to give a succinct and concise solution to this topic. It is dependent on a variety of circumstances, including the location where the loan was incurred. The majority of the time, the response is between one and six years.
If a written contract is breached in California, the applicable statute of limitations is three years. This is generally four years in duration. The date on which this statute of limitations begins to run is the date on which the most recent payment was due, or the date on which you ceased making payments on the obligation, whichever is the most recent.
There are regulations in place to prevent you from being victimized by unscrupulous debt collecting practices
Regardless of whether you are still inside the statute of limitations or have passed it, there are several methods that debt collectors are not permitted to use under any circumstances. They can include phoning you repeatedly only to bother or distress you, using foul language, issuing threats, or posing as bankruptcy attorneys, government agents, or representatives of a credit reporting business, among other things.
Consult with a professional to determine whether filing for bankruptcy makes sense for you
You can choose to wait for the statute of limitations to run out, but this is rarely the best course of action. For starters, it might take years. Second, the debt will continue to have an impact on your credit score while you are waiting. This has the potential to bring your entire financial condition crashing down.
You may consider filing for bankruptcy if you owe money to a medical provider and are unable to pay them back in full. Depending on the nature of your debts, you may be able to discharge them and begin the process of rebuilding your credit. Automatic stay laws provide protection as soon as a bankruptcy petition is filed, and these laws are known as automatic stay laws. This implies that your creditors will not be able to lawfully pursue collection proceedings against you while you are in the bankruptcy process.
To learn more, contact The Law Offices of Paul Y. Lee at 888-748-0025 and request a free legal consultation.