The Statute of Limitations Regarding Medical Debt in Nevada

Medical debt is a financial burden that can balloon literally overnight. The debt may eclipse a debtor's income and render him unable to pay the cost of his medical service. In Nevada, a creditor attempting to collect a medical debt must operate within a specific statute of limitations. This is the total amount of time a creditor has to compel the debtor to repay the medical debt.

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Medical Debt Definition

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In Nevada and other states across the country, a medical debt is considered a written contract for the purposes of collection and repayment regulations. This is a contract for service with the primary creditor being the service provider. A medical debt may have multiple service providers, including a hospital providing the medical facility and a physician performing medical care. Usually, the hospital serves as the primary debt collector on behalf of the physician administering care.

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Statute of Limitations

A creditor has six years in Nevada to collect on a medical debt. A creditor may no longer successfully obtain a judgment to force a debtor to repay a medical debt after the expiration of this statute of limitations. The expiration doesn't bar a creditor from filing a lawsuit, but all a debtor must do at the subsequent court hearing is point out the expiration of the statute of limitations in order to win a dismissal. This does not prevent a creditor from continuing collection practices by other means, including making phone calls and sending letters to the debtor requesting payment.

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Wage Garnishment

As of April 2011, wage garnishment is legal in Nevada for the collection of most debt, including a delinquent medical bill. A creditor must sue a debtor in civil court to obtain a wage garnishment judgment against the debtor before the six-year statute of limitations expires. Once obtained, up to 25 percent of gross weekly income or up to 30 times the federal minimum wage of weekly income may be taken -- whichever is less. Alternatively, a creditor may obtain a bank levy against a debtor to force him to pay. A bank levy entitles a creditor to seize the funds in a debtor's bank account to pay the balance of a debt.

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Collection of Medical Debts

The collection of medical debt in Nevada is governed by the Nevada Fair Debt Collection Practices Act. This state law restricts the means by which a creditor may pursue a consumer for a debt owed. It is illegal for a creditor or collection agency to threaten or harass a consumer for the purposes of collecting any debt. It is also illegal to present paperwork to a creditor that appears like an official legal document but is in fact not a legitimate legal document.

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