Legal Question in Credit and Debt Law in Virginia

Yes, it will. The credit bureaus can pretty much do and say anything they want, thanks to special protections from Congress. However, you do have a right to have a statement included with the item.

So I imagine that what you could say (I imagine this is probably true) is that the hospital bill was an unusual, one-time event, and you are paying it off regularly, and it should not reflect on your creditworthieness. It was an expense beyond your control, and you are being financially responsible by paying it off as fast as your budget permits.

But the credit bureaus can pretty much assign you any credit score they want, and do not even reveal how they calculate it. So they will almost certainly lower your credit score -- because they CAN.

The only thing that could prevent this is to work out a deal with the hospital so that your payments are technically "ON TIME" as you pay over time.

You might mention -- without making any definite statement one way or the other -- that you would not have to file for BANKRUPTCY and totally eliminate the debt 100%.

So if they realize that they might get NOTHING, they might be more reasonable in working out an "official" payment plan. Then under the payment plan your payments will not be late.

However, do not state that you WILL file for bankruptcy because they might use that to suggest you are a bad credit risk. Just remind them of the possibility.