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What is the statute of limitations for the collection of a hospital bill in California? Must legal action be initiated before a certain length of time has passed since the debt was incurred?
The Statute of Limitations for written contracts (debts included) is four years. However, if the hospital debt was somehow related to a federal funding or subsidy then federal law may be involved. If so, then I don't know what the Statute of Limitations would be. Your second question is correct. If the creditor did not initiate legal action within the time alloted by law, then he/it loses all rights in that debt.
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