Can Medical Debt Collectors Sue You? What You Need to Know
Medical debt collectors can sue you if the debt is valid and within your state's statute of limitations. You must respond to the lawsuit within 14-30 days to avoid a default judgment. Most collectors will settle for less than the full amount if you negotiate strategically.
Answer Your LawsuitBetween copays, deductibles, and out-of-pocket costs, medical bills add up fast. You might not even know about your medical debt until a collector calls.
Debt collectors often threaten lawsuits. But can they actually sue you for medical bills?
Being Sued for Medical Debt? Respond Before Your Deadline
You have as little as 14 days to file your Answer. Missing the deadline means automatic judgment against you. Draft your response in minutes and avoid wage garnishment.
Answer the LawsuitUnfortunately, yes. Medical debt collectors can sue you to recover unpaid bills. Here’s how to protect yourself and fight back.
Why Medical Debt Collectors Contact You
When you don’t pay medical bills, your healthcare provider may sell your debt. Collection agencies buy these debts and try to recover the money.
Collectors typically start with phone calls. They may become more aggressive over time. Eventually, they might threaten legal action.
You have rights during this process. Collectors must follow specific rules when contacting you.
Can Debt Collectors Sue for Medical Bills?
Medical debt collectors can absolutely sue you. But they must prove three things:
- The debt is accurate
- The debt belongs to you
- The debt is within your state’s statute of limitations
If the collector wins their lawsuit, you face serious consequences. The court can order you to pay the full amount. You might also owe legal fees and collection costs.
A judgment against you can lead to wage garnishment. Your bank account could be frozen. You need to take debt collection lawsuits seriously.
Statute of Limitations on Medical Debt
Every state has a statute of limitations for medical debt. The time limit varies significantly by location.
Most states allow three to six years. Some states extend the period to ten years or more.
Medical debt statutes differ from other consumer debt. Your state might have separate time limits for different debt types.
Here’s a critical detail: making a payment can restart the clock. In some states, even a small payment resets the entire statute of limitations.
For example, imagine your debt is nine years old. You make a $50 payment. The statute of limitations could start over completely.
Never make a payment without understanding the consequences. Check your state’s specific rules before taking action.
What to Do When Sued for Medical Debt
A lawsuit sounds frightening. But you can handle it if you act quickly and strategically.
Follow these steps to protect yourself and potentially resolve the debt.
Respond to the Lawsuit Immediately
You have limited time to respond. Most jurisdictions give you 14 to 30 days to file an Answer.
An Answer is your formal response to the lawsuit. It tells the court you’re fighting the claim.
Missing the deadline creates major problems. The court can issue a default judgment against you. You lose automatically without a chance to defend yourself.
Our partner Solo makes drafting an Answer simple and fast. You can print and file your Answer yourself. Or have it filed on your behalf for added convenience.
Don’t wait. Draft your Answer before your deadline expires.
Verify the Debt Belongs to You
Collectors must prove the debt is actually yours. Demand detailed documentation before taking any action.
Request specific information from the collector:
- Original creditor’s name
- Original debt amount
- Date the debt was incurred
- Insurance payments applied, if any
- Your payment history
- Current remaining balance
- Documentation connecting you to the debt
Sometimes collectors can’t provide adequate proof. They may drop the lawsuit entirely when you request validation.
Even if they provide documentation, you gain valuable information. You’ll know exactly what you’re dealing with financially.
Check the Statute of Limitations
Determine whether your debt falls within the legal time limit. Debt collectors might contact you about old, expired debts.
Never make a payment on old debt without checking first. Remember that payments can restart the statute of limitations.
If your debt is outside the statute of limitations, you have powerful leverage. The FDCPA prohibits lawsuits on time-barred debt.
You must raise this defense in court, though. The judge won’t automatically dismiss an expired debt lawsuit. You need to actively argue that the debt is too old.
Negotiate a Settlement for Less
Even expired debt doesn’t disappear. Your credit report still shows the unpaid balance.
Settling your debt often makes the most sense. Most collectors prefer quick payment over lengthy court battles.
Start by offering 50-60% of the total amount. The collector will likely counteroffer. You can negotiate until reaching an acceptable agreement.
Our partner Solo helps you negotiate without dealing with aggressive collectors. You only pay after reaching a final settlement agreement.
Always get your settlement agreement in writing. Confirm the collector will report the debt as settled to credit bureaus.
Example: How Beth Resolved Her Medical Debt
Beth had her appendix removed. Shortly after, she moved across town.
Her final doctor’s bill went to her old address. She never saw it. Months later, a debt collector called threatening a lawsuit.
Beth acted quickly. She verified the debt was legitimate. Then she negotiated a settlement for less than the original amount.
She resolved everything without going to court. The entire process took less than a month.
Your Rights When Dealing with Medical Debt Collectors
Federal law protects you from abusive collection practices. The Fair Debt Collection Practices Act establishes clear boundaries.
Collectors cannot harass you. They can’t call before 8 AM or after 9 PM. They can’t use profane language or make false threats.
You can request that collectors stop calling you. Send a written cease-and-desist letter. After receiving your letter, they can only contact you about specific legal actions.
Document all interactions with debt collectors. Keep records of calls, letters, and threats. These records become evidence if you need to file a complaint.
How Medical Debt Affects Your Credit
Unpaid medical debt damages your credit score. Collection accounts remain on your report for seven years.
Recent changes offer some protection. The three major credit bureaus now wait 365 days before reporting medical debt. They also remove medical debt under $500 from credit reports.
Paid medical collections help your score. Once you settle or pay medical debt, the positive impact appears quickly.
After resolving medical debt, focus on rebuilding your credit. Our partner Kikoff helps you improve your credit score with small, manageable payments.