A Fake Medical Bill Ruined My Credit! Help!

A fake medical bill that resulted due to a mishap around 3 years ago literally ruined my credit that led to additional deposit of $250 on an apartment, numerous loan rejections and recently barred me from reducing interest rates on my credit cards thus forcing me to pay another $800 in interest at 29.33% apr. After telling them that I might initiate legal action for the same, they removed the bills from my account but the losses still haunt me. Should I take this to small claims court? What can I expect from that? Thanks in advance.
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