Consolidation of medical bills - cleaning up credit

Mary, it's very nice to know that you are conscious about improving your credit. Though, your accounts are nearing the seven years mark allotted by the FCRA, but you should consider check the statutes of the medical bills as they are covered under the unsecured debts.

If the SOL of these debts has expired, you are under no legal pressures to pay the debt and no agency can force you into legal actions. But, making payments will definitely improve your credit. Be sure to pay it off without fail otherwise the statutes will already be restarted till it expires legally. It is better to pay the complete amount at one single shot.

Like any other unsecured debts, debt consolidation can be done on medical bills also.

Feel free to post your other queries as well. Be in tough often. :D

Thanks so much for your quick reply. What exactly is the SOL in California? I am pretty new to understanding how this all works, but I plan on doing my best to improve my credit. And also, does the SOL start on the date that the account was placed for collection, or is it the "date updated" section that I see on the credit report? Some of these vary quite a bit and that worries me!

Once again, thanks so much for your reply. :)

Written agreements are out of the statutes after 4 years and oral agreements are out after 2 years in California.

Neither the account is restarted when it is placed on collections nor it is related with the 'date updated' in your CR. SOL is only renewed when you make a payment towards your credit account or sign a promissory note to pay the debt. It is basically based on the date of last activity in your account.

Please tell us the date of last activity in the mentioned account so that I can give you some more information on it.

Just as an example, I have a medical bill in collections that I never made a payment for. The date placed for collection is 05/2001. However, the date updated is 9/2003. How exactly is the "date updated" determined, since I have never made any attempt to pay? Is the "date updated" something that the creditor is doing?

Once again, thanks :)

Waydizzy, one thing is for sure; your debt is out of the statutes as there is no activity within the SOL timeframe as per the California statutes.

The "date updated" refers to the date when you or your creditor or the collection agency entered new data in their system. It has nothing to do with the SOL factor.

Thanks so much, John! That makes me feel better. I understand that I still have a moral obligation to pay the debt, but at least I know for now I won't be threatened. Still have to figure out what I am going to do with all this debt, but this is a step in the right direction. Baby steps!!

Thanks again,
Mary

Mary, be safe and be sure with whatever you decide in solving your credit problems. You will never lose your way out. We will like to offer any advice that will help you.

Well, I already appreciate this website and the help I have received more than you could know! I know that I am on the right path, and I hope that I can get to the point that I can help others with their problems.