Medical Debt Protections in New Jersey
State protections for medical debt in New Jersey, including credit reporting and collection limits.
Short answer: Yes (Louisa Carman Medical Debt Relief Act, 2024). Medical creditors and collectors may not report medical debt for services on or after the law's effective date to credit bureaus, and credit bureaus may not report paid medical debt or medical debt under $500. P.L. 2024, c. 48 (N.J.S.A. 56:11-56 to -63)
| Medical debt protections | Yes (Louisa Carman Medical Debt Relief Act, 2024). Medical creditors and collectors may not report medical debt for services on or after the law's effective date to credit bureaus, and credit bureaus may not report paid medical debt or medical debt under $500. Collection actions must wait at least 120 days after the first bill and an offer of a payment plan, with 30 days' notice. Interest on medical debt, including on judgments, is capped at 3% a year, and wages may not be garnished for patients with income under 600% of the federal poverty level. The Attorney General enforces the law. Approved July 22, 2024. |
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More New Jersey debt & collections
- Statute of Limitations on Debt in New Jersey
- Wage Garnishment in New Jersey
- How to Respond to a Debt Collection Lawsuit in New Jersey
- What Creditors Can't Take in New Jersey
- All New Jersey debt & collections rules
FAQ
What protections apply to medical debt in New Jersey?
Yes (Louisa Carman Medical Debt Relief Act, 2024). Medical creditors and collectors may not report medical debt for services on or after the law's effective date to credit bureaus, and credit bureaus may not report paid medical debt or medical debt under $500. Collection actions must wait at least 120 days after the first bill and an offer of a payment plan, with 30 days' notice. Interest on medical debt, including on judgments, is capped at 3% a year, and wages may not be garnished for patients with income under 600% of the federal poverty level. The Attorney General enforces the law.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.