I have a $96,000 medical bill that I incurred in CA from Oct - Dec 2005 that is currently in collections and just sitting on my credit report. I now live in Illinois and was wondering how long can this bill haunt me? I was thinking about filing bankruptcy to get rid of it, but at the same time I'm thinking about letting this bill run it's course and hopefully it'll fall off my credit report after the statute of limitations has past. Would it be better to file bankruptcy and destroy my credit for the next few years or is it better to wait and see what happens?
In Arizona, a debt like this has a statute of limitations of six years.
Illinois may be different.
Challenge the debt on your credit report and it should go away - if the statute of limitations has run.
Please contact me directly with document for a free 30 minute consultation to get more concrete advice. This is not legal advice. I don't have enough information to give actual legal advice. I can only take the limited information presented and provide a framework to know how your situation may turn out. I may have questions that bring up issues you did not think were important but make a big difference.
The statute of limitations is a defense for court. California law would apply to this debt since the debt was incurred there. Due to the large amount of the debt it probably has hurt your credit report already as I would they are reporting it on your credit report. The debt does drop off your credit report after 7 years from the date service was rendered. I would pull a credit report and see when the debt is estimated to drop off. If you have waited this long it would seem that the creditor is not going to sue you unless they already did. If they did sue you already then you would want to file a bankruptcy. Hope this helps.
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I would leave it alone and let it drop off on it's own. The last thing you need is someone noticing they have not sued you!
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