Unpaid medical bills are a significant source of stress for many South Carolina residents. The process that follows an overdue medical expense can be complicated, involving collection agencies, specific legal timelines, and potential court actions. State and federal laws provide a framework for how this debt can be collected and what rights individuals have.
The Initial Stages of Medical Debt Collection in South Carolina
When a medical bill first becomes past due in South Carolina, the process begins with direct communication from the healthcare provider or their billing department. These initial contacts consist of letters and phone calls to remind you of the outstanding balance and to negotiate a payment plan.
If these early attempts are unsuccessful, the provider may turn the account over to a third-party collection agency. At this point, communication will shift from the provider to the agency, which will continue its own efforts to collect the debt. These agencies specialize in debt recovery, but their actions are regulated by law to prevent harassment.
South Carolina’s Statute of Limitations for Medical Debt
In South Carolina, there is a time limit for how long a creditor can wait before filing a lawsuit to collect a medical debt, known as the statute of limitations. For debts arising from a contract, which includes medical services, the statute of limitations is three years.1South Carolina Legislature. South Carolina Code Section 15-3-530 This three-year clock starts from the date of the last payment or from the date the service was provided.
If a medical provider or collection agency attempts to sue you for a debt after this three-year window has closed, the debt is considered “time-barred.” This means you can raise the expired statute of limitations as a complete defense in court. A judge would then be required to dismiss the lawsuit, preventing the creditor from legally enforcing the debt.
Legal Actions Medical Creditors Can Take
If a medical debt remains unpaid and is within the three-year statute of limitations, a creditor may file a lawsuit in court. The process begins when the creditor files a summons and complaint, which must be formally served on the debtor. You have 30 days to file a formal answer with the court to dispute the lawsuit. Failing to respond can result in a default judgment being entered against you.
Once a creditor obtains a court judgment, they can enforce it. One common method is wage garnishment; however, South Carolina law prohibits this for consumer debts, including medical bills.2South Carolina Legislature. Code of Laws – Title 37 – Chapter 5 – Remedies And Penalties This means a creditor with a judgment cannot directly order your employer to withhold money from your paycheck to satisfy the medical debt. This prohibition is a significant safeguard for debtors.
While wages may be protected, a judgment creditor can pursue other assets. They can place a judgment lien on real estate you own, which complicates your ability to sell or refinance the property without first paying the debt.3South Carolina Legislature. South Carolina Code Section 15-35-810 A creditor could also seek to levy bank accounts, which involves obtaining a court order to freeze and seize funds from your account.
Your Rights as a Consumer Facing Medical Debt Collection
When dealing with medical debt collectors, you are protected by both federal and state laws designed to ensure fair treatment. The primary federal law is the Fair Debt Collection Practices Act (FDCPA), which applies to third-party collection agencies.4Federal Trade Commission. Fair Debt Collection Practices Act Under the FDCPA, collectors are prohibited from using abusive or deceptive tactics, such as calling at unreasonable hours or threatening actions they cannot legally take.
South Carolina provides further protections through its Consumer Protection Code, found in Title 37 of the state’s laws. These state rules often apply to original creditors as well as collection agencies. This code grants you specific rights, such as the right to demand written verification of a debt. Once you request this in writing, the collector must cease collection efforts until they provide proof of the debt.
You also have the right to control how and when collectors contact you. By sending a written request, you can instruct a debt collector to stop all communication. After receiving such a letter, the collector can only contact you to confirm they will cease communication or to notify you of a specific action, such as filing a lawsuit.
Responsibility for Medical Debts of Spouses and Deceased Individuals
In South Carolina, a spouse can be held liable for necessary medical expenses incurred by their husband or wife under a legal principle known as the “doctrine of necessaries.” For this to apply, a creditor must show the services were necessary for the spouse’s health and that the other spouse failed to provide that support.
When an individual passes away with outstanding medical bills, responsibility for payment shifts to their estate. Creditors can file a claim against the deceased person’s estate during the probate process. The estate’s executor pays valid debts using estate assets. If the estate has insufficient assets to cover its debts, the medical bills may go unpaid, as family members are not personally liable for a deceased relative’s debts unless they were a spouse or co-signed for the obligation.