I am trying to clean up my credit and have a few questions regarding medical debt that I hope someone could answer or point me in the right direction to find the answer. What type of debt is medical bill debt classified as? Is it classified differently in different states? My medical debt occurred in North Carolina, but I have since moved and lived in CA for the past few years. Which state's statute of limitations on debt applies? The state where the debt occurred or the state I am a current resident of? Thank you for reading my questions
Hi Creditclen, and welcome to the Credit Talk forum. Medical debt is the same as any other debt, but not for a while. If you haven't paid your medical bills for just a few months, then this debt isn't being reported to the credit bureaus. However, if enough time passes, the hospital or doctor's office will most likely send your case to a collection agency which then will report the debt to the credit bureaus. Once reported, this medical debt on your credit report is the same as any other collection, and it will remain on your credit report for 7 years even if you pay it off or settle. If the collection amount is less than $100, however, then it may be ignored on your credit report. I am not quite sure on your other questions but maybe some senior members of this forum like mindcrime or jam can help out. Thanks Logan
The state you're living in is the SOL you go by. If the OC/CA were to sue you, they're suing you in California, not in NC. This is more of a rare occurrence, so it doesn't come up all that often. Now, there is the issue of the SOL being "tolled" until you go back to the state where the debt was incurred; if you were to ever return. I'm not sure, but I believe this is a state-by-state basis.
