Summoned to Court for Medical Bills? Here’s What to Do

Getting sued for unpaid medical bills feels overwhelming. You’re fielding calls from debt collectors. Then they file a lawsuit against you.

Now you face a judge. You need to act fast and understand your rights.

Can Hospitals Sue You for Unpaid Medical Bills?

Yes, you can be sued for medical bills. The hospital or medical provider may sue you directly. Or they’ll sell your debt to a collection agency.

Either way, you’re facing legal action.

Hospitals Take Legal Action First

The hospital’s billing department will try to contact you first. They’ll attempt to collect the outstanding balance.

If you don’t pay, they’ll escalate to internal collections. When that fails, they often sell your debt to a collection agency.

Collection agencies buy medical debt for pennies on the dollar. They purchase it for less than you actually owe.

Collection Agencies Buy Medical Debt

A debt collection company purchases your debt portfolio at a discount. They acquire the right to collect on it.

Once they own your debt, they’ll do everything possible to recover it. They’ll report the debt to credit bureaus. Your credit score will drop.

The agency will contact you repeatedly. If you ignore them, they’ll file a lawsuit. Our partner Solo can help you respond effectively.

How to Respond to a Medical Debt Summons

You’ll receive a Summons and Complaint when sued. These documents notify you of the lawsuit.

They list all claims against you. Your first step is drafting an Answer document.

Three Steps to Respond and Win

Follow these steps to fight back against medical debt lawsuits:

1. Answer each allegation in the Complaint: Your Answer must respond to every claim. Admit if something is true. Deny if you dispute it. State lack of knowledge if you’re unsure.
2. Assert your affirmative defenses: Add reasons why you shouldn’t lose. Common defenses include statute of limitations, debt already paid, Medicaid eligibility, or billing errors.
3. File your Answer and serve the plaintiff: You have 14-30 days to file, depending on your state. Send a copy to the plaintiff’s attorney too.

Missing your deadline means a default judgment against you. Our partner Solo helps you respond in all 50 states.

What Happens If You Miss the Deadline?

Failure to respond results in a default judgment. The hospital or collector can garnish your wages.

They can seize your property. They can freeze your bank account.

File a Motion to Set Aside Judgment

You can ask the court to reverse the default judgment. File a Motion to Set Aside Judgment.

You’ll need to prove one of these conditions:

• You never received court documents or notice from the hospital
• You reasonably believed your insurance paid the bills

Default judgments put you in a weak position. Prevention is always better than trying to undo damage.

Settling Medical Debt After a Lawsuit

You can still settle even after being sued. Your chances of settling are actually quite good.

Collection agencies bought your debt for a fraction of the original amount. Sometimes for less than 10% of what you owe.

You can offer to pay 50% or less. The agency still makes a profit.

Settlement Negotiation Tips

Follow these strategies for the best settlement outcome:

• Always get settlement agreements in writing
• Never agree to pay more than you can afford
• Start with a low offer, around 25-30% of the debt
• Wait until after filing your Answer to negotiate
• Request deletion from credit reports as part of the deal

Don’t negotiate before filing your Answer. Some collectors agree to settle, then file for default judgment anyway.

Protect yourself by filing your response first.

Protecting Your Finances During a Lawsuit

Take action to safeguard your assets. Review all your bank accounts.

Debt collectors can garnish wages or freeze accounts. Know which accounts are vulnerable.

Consider these protective steps:

• Respond to the Complaint with valid defenses
• Challenge the lawsuit’s accuracy and documentation
• Negotiate a lower settlement if judgment seems likely
• File your Answer on time to prevent default

Your Rights as a Medical Debt Defendant

You have legal rights in debt collection lawsuits. Collectors must prove they own the debt.

They must prove you owe the amount claimed. They must prove they followed proper procedures.

Many medical debt lawsuits have weak documentation. Collection agencies often can’t produce original contracts.

They may lack proper chain of custody records. Your Answer can expose these weaknesses.

Being proactive gives you leverage. Filing a strong response forces collectors to prove their case.

Many will settle rather than go through costly litigation.