Sued for Medical Bills? Here’s What You Need to Do

Medical bills can crush your finances without warning. Even with insurance, a single emergency can leave you with massive debt.

Getting summoned to court makes everything worse. But you have more power than you think.

Understanding your rights and options helps you fight back effectively. You can beat medical debt collectors in court.

Your Legal Rights Against Medical Debt

Medical emergencies are bad enough. Court summons for medical bills make them worse.

Good news: Federal and state laws protect you from unfair billing practices.

The No Surprises Act offers powerful consumer protections. Starting in 2022, this law shields you from unexpected medical costs.

What the No Surprises Act Does for You

• Health plans must cover emergency bills at in-network rates
• Providers cannot balance bill you for out-of-network emergency care
• Excess charges from out-of-network providers are banned
• Oversight and enforcement protect your rights

Additional Rights You Should Know

The National Consumer Law Center confirms these important protections:

• Send a written letter to stop collector harassment permanently
• Negotiate payment arrangements directly with hospitals before court
• Emergency rooms cannot turn you away regardless of debt
• Review and challenge incorrect charges on your bills
• Dispute any charges that don’t match your insurance explanation of benefits

You hold more power than collectors want you to know. Exercise your rights without guilt or hesitation.

Ways to Eliminate Medical Debt Before Court

Collectors want you to think their way is the only way. That’s completely false.

You have multiple paths to resolve medical debt. Choose the option that fits your situation best.

Payment Plans and Negotiation

Contact the medical facility before they contact you. Most hospitals offer reasonable payment plans if you reach out first.

You can often negotiate the total amount down significantly. Offer what you can pay in cash right now.

Scrutinize Your Bill for Errors

Medical billing errors happen constantly. Review every line item carefully.

Challenge any charges that seem incorrect or duplicated. Insurance companies make mistakes too.

Check Your State’s Statute of Limitations

Each state sets a deadline for debt collection lawsuits. If your debt passed that deadline, collectors cannot sue you.

The statute of limitations varies by state. Research your state’s specific timeframe.

Professional Help and Hardship Options

Medical debt advocates specialize in reducing or eliminating bills. They negotiate on your behalf with hospitals and collectors.

Hardship programs exist for people with limited income. You might qualify for debt forgiveness based on your financial situation.

Bankruptcy as a Last Resort

Medical bills count as unsecured debt in bankruptcy proceedings. Chapter 7 or Chapter 13 can eliminate these debts entirely.

Bankruptcy affects your credit score and future loan applications. Consider speaking with a bankruptcy attorney for free to understand your options.

Weigh the consequences carefully before filing. Sometimes bankruptcy offers the fresh start you need.

Fighting Medical Debt Collectors in Court

Collectors rely on you not knowing the rules. Understanding statutes of limitations gives you powerful defenses.

Your defense strategy matters more than the debt amount. Knowing what to say protects your rights.

How to Respond to a Medical Debt Lawsuit

Never ignore a court summons. Ignoring it guarantees you lose.

Follow these critical steps when you receive lawsuit papers:

Immediate Actions Required

1. Read the summons completely and note the response deadline
2. Respond within the timeframe specified by the court
3. Contact collectors to discuss settlement for a reduced amount
4. Monitor your bank accounts for wage garnishment attempts

Our partner Solo makes responding to debt lawsuits straightforward. You can draft a proper Answer without hiring an expensive attorney.

If You Missed the Deadline

Default judgments happen when you don’t respond on time. You still have options even after default.

You can challenge the judgment with these approaches:

1. Prove you never received the court summons or billing notices
2. Show evidence that insurance should have covered the charges
3. Demonstrate court error or excusable neglect
4. File for bankruptcy to discharge the debt entirely

The Three Steps to Winning Your Case

Responding correctly dramatically increases your chances of success. Follow this proven approach:

Step 1: Respond to Every Claim

Address each allegation in the complaint individually. Admit what’s true and deny what’s false or unknown.

Don’t assume anything. If you’re unsure about a claim, deny it.

Step 2: Assert Your Defenses

Affirmative defenses protect you from liability. Common defenses include:

• Statute of limitations expired
• Debt already paid or settled
• Incorrect amount claimed
• Lack of proper documentation
• Identity theft or mistaken identity

Step 3: File and Serve Properly

File your Answer with the court before the deadline. Send a copy to the opposing attorney as required.

Keep proof of filing and service for your records. Missing these steps can cost you the case.

Settlement and Negotiation Strategies

Most medical debt cases settle before trial. Collectors know court is expensive and time-consuming.

You can often settle for 30-50% of the original debt. Sometimes even less if you negotiate well.

When to Negotiate

Start negotiation talks after you file your Answer. Filing shows you’re serious about defending yourself.

Never agree to payment terms you cannot afford. Broken payment agreements make everything worse.

Get Everything in Writing

Verbal agreements mean nothing in debt collection. Demand written settlement terms before paying anything.

The agreement should state the debt is settled in full. Otherwise collectors can come after you for the remaining balance.

Protecting Your Assets from Judgments

If collectors get a judgment against you, they can pursue your assets. Understanding exemptions protects your property.

Each state exempts certain assets from collection. Common exemptions include:

• Primary residence equity up to state limits
• Retirement accounts and pensions
• Social Security and disability benefits
• Basic household goods and clothing
• Tools needed for your profession

Collectors cannot take exempt assets regardless of judgment size. Know your state’s exemption laws.

When to Consider Bankruptcy

Bankruptcy eliminates medical debt permanently. Chapter 7 wipes out most unsecured debts in 3-4 months.

Chapter 13 creates a 3-5 year repayment plan based on income. Medical bills often get discharged without full payment.

Bankruptcy Benefits

• Immediate stop to all collection activities
• Wage garnishments end automatically
• Most medical debt gets discharged completely
• Fresh financial start within months

Bankruptcy Consequences

Your credit score will drop initially. Bankruptcy stays on your report for 7-10 years.

Future loan applications become harder to qualify for. Some employers check bankruptcy records during hiring.

For many people, bankruptcy provides the only realistic path forward. Speak with a bankruptcy attorney for free to explore whether you qualify.

Taking Control of Your Medical Debt

Medical emergencies are unpredictable and stressful. The debt that follows doesn’t have to destroy your finances.

You have rights, resources, and proven strategies to fight back. Collectors count on you staying silent and confused.

Respond to lawsuits quickly and correctly. Negotiate from a position of knowledge and strength.

Whether you settle, defend in court, or file bankruptcy, you control the outcome. Take action today to protect yourself and your family.