Unpaid Medical Bills On Credit Report Until 2009 - Then What?

Reader Question: I never knew I had unpaid medical bills. My credit report says it will stay on there until 2009. What happens to the debt after that?

When you have unpaid bills, the account is typically sent to a collection agency. But since you didn't even know about them, this probably never happened. You would certainly know if a collection agency took over the account (from the hospital or doctor), because they make a habit of calling constantly to seek payment.

So my guess is that the hospital or clinic just reported it to the credit reporting agencies, and that was the end of it. If the unpaid bills are showing up on your credit report, but you were never hounded by a collection agency ... that's probably what happened.

When a negative item such as this hits your credit report, it can only stay on there for a few years. By law, most negative information must come off after seven years. A bankruptcy filing can stay on your report for a bit longer, up to ten years. After that "expiration" date has lapsed, the item will come off your report. This means the item it will no longer affect your credit score -- nor will it be visible to any lenders who check your credit when considering you for a loan.

Of course, you might still owe the debt. It just won't show up on your credit report after seven years. In other words, the debt may remain even though the negative entry is removed from your credit file.

Related Q&A sessions:

• Overdue medical bills and credit scores
• How do hospital bills affect my credit rating?

Hope that helps you out. Take care.