What is the statute of limitations on collection of debt resulting from a medical bill?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What is the statute of limitations on collection of debt resulting from a medical bill?
In 2004 I had a verbal agreement with a physical therapist in IL, who agreed to accept a co-pay and insurance payments for services rendered, (waiving any resulting balance due and payable by me). Now, 6 years later, I am getting a bill for said remainder. As they are breaking our verbal agreement, can I be held responsible for the balance?
Asked on November 11, 2010 under Bankruptcy Law, Arkansas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
In Arkansas, the statute of limitations for an oral (often called verbal) contract is 3 years, while the statute on a written contract is five years. The original debt was probably based on a written contract--an agreement or invoice--in which case it could be enforced (collected on) up to five years later. If there was only an oral agreement from the beginning, it's only enforceable for three years.) That means that if the debt arose in 2004, it's not clear that you could be sued on it any longer (since it's 2010); generally speaking, if someone does not try to collect until after the statute of limitations ran out, there is no possiblility of taking legal action to force the alleged debtor to pay. That said, the statute of limitations begins running from when the event giving rise to a cause of action occured, so if, for example, what happened was that in 2005 or 2006 the insurer defaulted on or denied payment for the claim, that could be when the cause of action accrued and the five years started running from them. So depending on the circumstances, it may be possible, ignoring your verbal agreement, to hold you responsible for the balance, if in originally getting the services, you signed anything (so written contract for debt) saying you'd pay, and if also the event giving rise to the collections attempt, such as nonpayment by an insurer, occured within the last 5 years.
As for the oral/verbal agreement: as a matter of law, an oral agreement is enforceable; as a practical matter, proving that it existed and what it's terms are can be very difficult, if the other side has a different recollection, no recollection, or actively denies it. So in theory, if there was an oral agreement to settle the debt, that should be enforceable, but if there's no record of it anywhere, proving it may be exceptionally difficult.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.