In Arkansas, medical debt is generally not automatically written off by law, but there are some circumstances where relief may be available. Here are key points to understand:
1. Bankruptcy
Filing for Chapter 7 or Chapter 13 bankruptcy can discharge (write off) medical bills along with other unsecured debts like credit cards. In Chapter 7 bankruptcy, your non-exempt assets may be sold to pay off creditors, and the remaining medical bills are typically discharged. Chapter 13 allows you to reorganize your debts and pay them off over time, with remaining medical debt potentially discharged at the end of the repayment plan.
2. Statute of Limitations
In Arkansas, the statute of limitations for medical debt is five years from the date the debt became due. If the creditor does not take legal action to collect the debt within this time frame, the debt becomes unenforceable. However, this does not mean the debt is written off — it just means that the creditor cannot legally force you to pay it through the courts.
3. Debt Forgiveness Programs
While there’s no specific Arkansas law that writes off medical bills, some hospitals and healthcare providers offer financial assistance or charity care programs for low-income patients. These programs can significantly reduce or even eliminate your medical bills, but they are typically applied for on a case-by-case basis.
4. Medical Debt Settlement
Some people may be able to negotiate or settle their medical debt for a reduced amount, though this is not guaranteed and depends on the willingness of the creditor. Debt settlement may result in a portion of the debt being written off.
5. Medicaid Eligibility
If you’re eligible for Medicaid in Arkansas, Medicaid may cover your future medical costs, but it won’t retroactively “write off” past medical bills unless you were eligible at the time those bills were incurred.
In summary, while Arkansas law does not automatically erase medical debt, bankruptcy, charity programs, and negotiation are potential options for having medical bills forgiven or reduced. It’s always a good idea to consult a financial advisor or attorney to explore the best options for your specific situation.