Statute of Limitations on Medical Bills in Arizona

Medical bills can be a devastating blow to the budget, especially in difficult economic times. In Arizona, the length of time that unpaid medical bills can hang over your head depends on the nature of the account and whether the doctor has filed a lawsuit against you for collection of the bill.

Account - Open or Stated

An "open" account allows the purchaser to order goods or services and pay for them at a later time. The term "stated" basically means that the creditor sends to the debtor invoices on which the amount owed is stated. This type of account has a statute of limitations of three years in Arizona. This means that within three years from the date the last payment was made on the account, the creditor must file a lawsuit against the debtor, or the creditor will lose the right to collect the amount due.

Written Contracts

In the case of a written contract, the creditor has six years from the date the last payment was made in which to sue the debtor. Many patients sign forms indicating they understand that payment is due for services rendered at the time of the office visit; this document could be construed as a written contract in court.

Judgments

If the creditor has filed a lawsuit against the debtor and won, the creditor may then take steps to collect against the judgment. This could include garnishing the debtor's wages or bank accounts. If the debtor owns any real property, the creditor must record the judgment in order to prevent the debtor from selling that real property prior to paying the judgment. A judgment must be renewed every five years or it will expire, in which case the creditor will lose the right to collect against it.

Liens

If medical bills are incurred due to an automobile accident, the doctor may place a lien against any amount recovered by the patient from an insurance company. This lien must be paid prior to distribution of any settlement proceeds.