Old Bills

How to Handle Old Bills

I have a $1400.00 hospital bill from 6.5 years ago on my credit report.

If I pay this will it be removed, or will it be gone when it is 7 years old?

Thank you.

Rachael

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First of all, have you seen a recent credit report? Is this negative item still on it? How has it affected your credit score?

Many credit experts would advise that you leave well enough alone and that you might cause more trouble for yourself than it's worth if you try to pay the bill now.

If you pay the bill without doing anything else, the late payment will remain on your credit report for several more years. If you call the hospital and talk to them first, they might either remove the negative item or indicate it was paid “as agreed” or some other similar language that is more favorable to you.

Of course, potential lenders will be happy to see that you fulfilled your obligation, so looking at the big picture, you might come out ahead.

I don’t know what state you live in, but it is more than likely that the statue of limitations has run and the debt is uncollectable.

That doesn’t necessarily mean that someone won’t try to collect on it. But if you re-acknowledge the debt now, you might be reopening the statute of limitations. So if you can’t afford to make payment in full, it might be best to leave things alone.

Consult a lawyer or debt counselor in your area to determine your legal rights at this point.

Consult an expert before doing anything. If you leave the matter alone, it might simply resolve itself one day.

There should be no further reference to this item seven and a half years after your last payment.

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