Medical turned over to collection agency

THE SOL probably runs out in 7 years which means that they cannot bring a law suit against her for them. However, just because the SOL runs out does not mean that she does not owe these bills anymore. I have been told numerous times that medical does not affect credit but when you go to buy a house, it can cause you to be turned down.

I understand that they cannot bring a lawsuit against you but do they have to remove this from your credit report also? This is the part that has me confused. And I tried to tell her that it DOES and CAN affect your credit! Also told her to try to settle this debt with them for a lesser amount and have them show it as paid in full but she insists this "so called" financial advisor told her it will have the SAME bearing on her credit no matter what.... Some how i don't believe this... what happens if after the 7 years they sell this debt to a junk debt buyer than can't it once again be put back on your credit report?

Im not sure of the legality of it but I think that a junk debt buyer will try to put it back on her Credit report...As far as it having the same affect on her credit score...A loan officer would much rather see a settlement and PIF than non payment at all. I mean if she ever plans on buying a house that would be the important thing

Well she already has a house under her husband's name and when they bought their car she tried to get it under her name and was unable to because of these medical bills on her credit report. She's under the impression right now after a couple more years this will disappear from her credit report and NEVER come back. My fear is, it WILL come back to haunt her over and over and she DOES owe this money so why not try to settle this debt for a lesser amount and have it shown as paid in full. And also, i find it hard to believe that a financial advisor would advise someone NOT to pay their bills!!

Two years is a long time to keep that debt reported in your daughter's credit report. Most of the lenders will react differently when they see an account unpaid for such a long time. She may have a hard time in getting new credit, even though medical bills have least effect on the credit scores. The collection agency cannot recover the debt from your daughter if the SOL is already expired. Under the FCRA laws, no account is to be reported in the credit copy once they are past the seven years reporting time frame. If a collection agency tries to report the item negatively after its already removed from the credit copy, it will be a violation of the FCRA laws. You can file a legal case against them.

So if she were to make a settlement with them and they agree to show paid in full will it then be removed from negative items? And now she thinks she can go out and get an unsecured small loan to build some credit. I told her NO one will give her a loan with these outstanding medicals!! She doesn't believe it cuz of this, once again, "financial advisor"! KIDS! lol

From personal experience - that has been my issues, medical bills. I paid 2 of them in full rather than settling for a lower amount, because I did owe them and because the CA said I would get a paid in full - however, on my credit report it say "paid in full-after collections" and this will be on my report for 7 years - in the negative section. So make sure that if she settles for less that it doesn't cause a problem either. But yes it definitely does make a difference when you are trying to get credit - from my own experience. Is this financial advisor going to giver her a loan himself? then he really shouldn't be giving advice like that, when he isn't the one that will pay for the mistakes made in the future. Just my 2 cents.