In California, the statute of limitations on medical debt is four years, running from the date of the bill. That deadline comes from Section 337 of the California Code of Civil Procedure, which governs actions on written contracts.1California Legislative Information. California Code of Civil Procedure Section 337 Once four years pass without a lawsuit, a creditor or collector loses the ability to sue you or force you into arbitration over the bill. California layers several other protections on top: medical debt cannot legally appear on your credit report, collectors face strict conduct rules under state law, and even if a creditor wins a judgment, interest and garnishment are capped.
When the Four-Year Clock Starts
The limitations period runs from the date of the bill. There’s an “open book” exception that can move the starting point to the date of the last service rendered when you have an ongoing account relationship with the same provider, which matters if you’ve been treated repeatedly by the same doctor or clinic over a stretch of time. In that situation the clock resets each time new services are added to the same account, and the four years runs from the most recent charge.
Section 337 covers most medical debt because the underlying obligation is treated as a written contract or open book account. Different rules can apply to unusual arrangements, but for a standard hospital, physician, or clinic bill, four years is the number to know.
Partial Payments and the Risk of Restarting the Clock
One of the easiest ways to lose the statute of limitations defense is to make a payment on an old bill without thinking it through. Under California Code of Civil Procedure Section 360, the only way to revive an expired statute of limitations is through a new written promise signed by the debtor. A partial payment by itself does not restart a clock that has already run out.
The picture changes if the four years haven’t yet expired. A payment on a promissory note within the limitations period can restart the clock, giving the creditor a fresh four years to sue. So the distinction is critical: if the debt is old enough that you suspect the deadline may be close or already past, get that answer nailed down before you send any money. A small “good faith” payment can quietly hand the creditor another four years of collection power if the debt was still within the window.
What Happens After the Four Years Run
Once the limitations period expires, the debt becomes time-barred. Section 337 states that no one may bring suit or initiate arbitration or other legal proceedings to collect it.1California Legislative Information. California Code of Civil Procedure Section 337 If a creditor or collector files anyway, you can raise the expired deadline as a defense and the court will dismiss the case. This defense is not automatic. You have to raise it, which is why keeping records of your bill dates matters.
Expiration does not erase the underlying debt. Collectors can still contact you about the balance by phone or mail. What they cannot do is misrepresent your legal obligation. Telling you that you must pay a time-barred debt, or threatening to sue when the limitations period has expired, violates both the federal Fair Debt Collection Practices Act and California’s Rosenthal Fair Debt Collection Practices Act.2California Legislative Information. California Civil Code Section 1812.700
Medical Debt Cannot Appear on Your California Credit Report
Senate Bill 1061, which took effect on January 1, 2025, prohibits medical debt from appearing on consumer credit reports in California. The California Attorney General has stated the rule directly: “In California, it is illegal for medical debt to appear on your credit report.”3California Attorney General. In California, It Remains Illegal for Medical Debt to Appear on Credit Reports The law defines medical debt broadly as any amount owed to a provider of medical services, products, or devices.
This protection stands on its own regardless of what happens at the federal level. The three major credit bureaus voluntarily stopped reporting medical collections under $500 in April 2023 and removed records of already-paid medical bills.4Consumer Financial Protection Bureau. Have Medical Debt? Anything Already Paid or Under $500 Should No Longer Be on Your Credit Report A broader federal rule finalized in early 2025 was placed on hold by the Trump administration. For Californians, that federal uncertainty is beside the point, because SB 1061 already blocks medical debt from credit reports regardless of the amount.
If medical debt shows up on your California credit report, you can dispute it directly with the credit bureau and report the violation to the Attorney General’s office.
What Collectors Can and Can’t Do
California’s Rosenthal Act reaches further than the federal FDCPA in one important way: it covers original creditors, not just third-party collection agencies. When a hospital billing department itself calls you about an unpaid balance, the federal FDCPA doesn’t apply because the hospital is the original creditor. The Rosenthal Act does. You get the same protection whether the call comes from the doctor’s office or from a collection agency that bought the debt.
Under both statutes, collectors cannot contact you before 8 a.m. or after 9 p.m., make false statements about the amount you owe, threaten legal action they cannot or do not intend to take, or misrepresent who they are.2California Legislative Information. California Civil Code Section 1812.700 Third-party collectors subject to the FDCPA must send a written validation notice within five days of first contact, listing the amount owed and identifying the creditor. If you dispute the debt in writing within 30 days of receiving that notice, collection activity must stop until the debt is verified. Use that pause even if you think the debt is valid. It forces the collector to produce documentation and gives you time to check for billing errors and to confirm whether the four-year window has already closed.
California also requires third-party collectors to include a state-specific notice describing your rights under both the Rosenthal Act and the FDCPA. If the collector first contacted you in a language other than English, that notice must be provided in the same language within five business days.5Justia. California Civil Code Sections 1812.700-1812.702
If a Creditor Sues Within the Four Years and Wins
A lawsuit filed inside the limitations window can end in a money judgment against you, which unlocks enforcement tools like wage garnishment and bank levies. California caps wage garnishment at the lesser of 25 percent of your disposable earnings or the amount by which your weekly earnings exceed 40 times the state minimum hourly wage. If you earn near minimum wage, there may be nothing available to garnish.
Medical debt gets an extra shield. Under Code of Civil Procedure Section 706.051, you can file a claim of exemption from wage garnishment when the underlying debt is for medical services. The court then has discretion to reduce or eliminate the garnishment based on your financial situation.
Interest on medical debt judgments is also capped below the standard consumer rate. For judgments under $200,000, the interest rate is 5 percent, and the judgment can be renewed only once for five years. For judgments of $200,000 or more, the standard 10 percent rate applies with the usual 10-year renewal period.6California Courts. Judgment Renewals and Interest Rates The reduced rate applies to judgments entered or renewed on or after January 1, 2023.