If you do nothing and don't pay, you could be facing late fees and interest, debt collection, lawsuits, garnishments, and lower credit scores.
Parental Responsibility: In some cases, if a debt was incurred with the consent of a parent or guardian, they may be held responsible for the debt. Debt Collection: While a debt collector may contact you about a debt, they cannot take legal action against you or enforce payment if you are under 18.
That has prompted states including Colorado, New York and California to enact legislation prohibiting medical debt from being included on residents' credit reports or factored into their credit scores.
The answer to this question is not as clear as you may believe. Like a spouse's medical bills, a parent is legally responsible for the medical bills of a child under the age of 18.
No Reporting Paid Medical Debt: As of July 2022, the three major credit reporting agencies have agreed to not include paid medical debt on consumers' credit reports.
Each state has its own variation of the filial responsibility law. For example, California Family Code section 4400 reads, “Except as otherwise provided by law, an adult child shall, to the extent of the adult child's ability, support a parent who is in need and unable to self-maintain by work.”
The CFPB's new rule amends Regulation V, which implements the Fair Credit Reporting Act (FCRA), to end this exception and establish guardrails for credit reporting companies, prohibiting them from including medical bills on credit reports sent to lenders, who are banned from considering them.
It takes seven years for medical debt to disappear from your credit report. And even then, the debt never actually goes away. If you've had a recent hospital stay or an unpleasant visit to your doctor, worrying about the credit bureaus is likely the last thing you want to do.
In June 2024, the Consumer Finance Protection Bureau proposed a new regulation that would prevent nearly all medical debt from appearing on credit reports, no matter the amount.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
“Normally, if you're 18 or older, you're considered the responsible party, even if you're insured under your parents' policy,” Gundling said.
In most cases, the deceased person's estate is responsible for paying any debt left behind, including medical bills. If there's not enough money in the estate, family members still generally aren't responsible for covering a loved one's medical debt after death — although there are some exceptions.
Using a standard calculation, an individual earning $1,000 a week might pay around $250 per month for one child, though this figure can vary significantly based on specific circumstances and local county guidelines.
If you have medical debt that the creditor claims you did not pay, you may be facing issues with debt collectors or even a lawsuit.
What can you do? If your ex-spouse won't pay his share of your child's medical expenses, your best option is to request reimbursement through family court.
The short answer is yes, it is possible to lose your home over unpaid medical bills though the doctor or hospital would have to be willing to go to a lot of effort to make that happen. Medical debt is classified as unsecured debt. This means that your debt isn't tied to any collateral.
Medical debt will be removed from consumer credit reports for all Americans under a final rule announced Tuesday by Vice President Kamala Harris. The rule will affect more than 15 million Americans, raising their credit scores by an estimated average of 20 points.
But under pressure from lawmakers and President Joe Biden, the three credit bureaus — Equifax, Experian and TransUnion — voluntarily agreed they would stop reporting medical debts under $500. These collections tradelines were removed from credit reports in April 2023.
There is no one, clear cut answer to the question of whether hospitals write off unpaid medical bills. Some hospitals do this a lot, some do not do it at all, and there is a wide range of hospitals in between. Many factors go into how and if, a hospital writes off an individual's bill.
Once the collection agency reports the debt, it'll stay on your credit report for seven years. In recent years, there have been changes to how medical debt impacts credit scores. TransUnion, Equifax, Experian, and other major credit bureaus began eliminating paid medical debts from credit reports in 2022.
This is because of the basic legal principle that a minor lacks the capacity to enter into a valid contract. Even if the bills are for the child, the financial responsibility to pay them therefore rests with the parents, not the child.
Under the law, the requirement to make adult coverage available applies only until the date that the child turns 26.
Your responsibility towards your child legally ends when your child gets to the age of 18 years. It also ends if they get married or enter into a registered partnership before 18 years. The court may also have the upper hand in terminating your parental responsibility.