How does a medical bill judgment affect my credit score?
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Nancy S asked:
Hello. How does a court judgment for a medical bill count against one’s credit score? For instance, for a debt of $10k, if the court decides in the hospital’s favor, what will that do to my FICO score? Is there a specific amount the score will decrease by? Is it based on the amount of the debt? Thanks in advance.
Hello. How does a court judgment for a medical bill count against one’s credit score? For instance, for a debt of $10k, if the court decides in the hospital’s favor, what will that do to my FICO score? Is there a specific amount the score will decrease by? Is it based on the amount of the debt? Thanks in advance.
April 19th, 2010 at 12:00 pm
I don’t know how much it will decrease by, but ANY judgement counts against your credit score. And I highly doubt that the dollar amount matters. What is important is whether you are on time with your payments. The number of 30-, 60-, and 90-days-late show up, regardless of who the creditor is. You cannot just decide not to pay a medical bill. You owe the money and if you don’t pay it, you’re a bad credit risk. Period.
April 21st, 2010 at 4:50 pm
Once a judgment is slapped on your credit report, your FICO score plummets. There isn’t an exact way to determine “how” bad it plummets, but for sure, it does. Depending on where you live, judgments can stay on your credit report anywhere from 7-20 years. The longer the judgment, the more your score depletes, the more the debt attached to the judgment, the more it affects your score. Always try to avoid this result, then garnishments, and asset freezing can lead. You feel at a lost when your debt is controlling your living to this extent. I would contact them, and try to resolve it, and attend your court date, if given one. I wish you the best, been there done it, friend!
April 22nd, 2010 at 4:40 am
It only affects your credit score if it goes to collections. If you lose the court case, then the court will demand that you pay the medical institution. It also gives the institution the power to garnish your wages in case you do not pay. But all in all, it will not affect your credit unless you do not pay.
Hope this helps.
April 23rd, 2010 at 6:59 pm
The dollar amount makes no difference. Judgments show up in the public records section of your report and depending on what your score is made up of now they can cause your score to drop anywhere from 100 to 150 points at first.
Once they get the judgment they can attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.
This will stay on your credit for 7-years or until the statute of limitations runs out whichever is longer weather you pay it or not making it very hard to get any other types of loans without making massive down payments, paying huge fees and State maximum interest rates.
April 24th, 2010 at 10:07 am
I agree with Spifiman’s answer
April 27th, 2010 at 6:14 am
You can expect a hit of up to 100 points. Why not settle it out using a 3rd party arbitrator before they add interest, attorney fees, and court costs? I did something similar using with great success though medical bills and judgments are hit and miss. Good luck.