Do I Need a Lawyer for Medical Bills? Expert Guide

When medical debt gets sold to collections, a collection agency has purchased or been hired to collect it. The debt typically gets reported to one or all three credit bureaus: Experian, TransUnion, and Equifax.

Your medical bills appear on your credit report once they are 180 days past due. You get this grace period to resolve issues with your medical provider. During this time, you can make payment arrangements or dispute incorrect charges. Otherwise, you risk getting taken to court.

Sued for Medical Bills? Respond in 15 Minutes

Do not let medical debt collectors win by default. Answer your lawsuit quickly and protect your rights with step-by-step guidance from our partner Solo.

Respond to Lawsuit

Unpaid medical debt will impact your credit scores. A past due account lowers your credit score, but you have options. The good news? You may not need a lawyer for medical bills if you act quickly.

What to Do When Collectors Come After You

You face a lawsuit for medical debt because you have not paid and may be ignoring collection attempts. Ignoring collectors makes everything worse. Instead, take these steps:

Gather Your Evidence

Collect documentation showing what you have paid. Request proof that you actually owe the debt. Force the debt collector to prove your responsibility. They cannot legally sue you if they cannot prove you owe the money.

File a Dispute

Dispute inaccurate information with any credit bureau reporting the error. You have the right to challenge incorrect medical debt on your credit report.

Keep Communication Lines Open

The Fair Credit Reporting Act requires credit bureaus to investigate all disputes. The Fair Debt Collection Practices Act (FDCPA) governs how collectors can speak with you. Collectors who violate this act give you grounds for a counterclaim in court.

If you are being sued for medical debt, our partner Solo can help you respond to the lawsuit quickly and effectively.

Understanding the Debt Collection Process

Medical debt sold to a collection agency gets reported to credit bureaus. The debt stays on your credit history for seven years from the original delinquency date. Paying off your debt is the best option, but paid collections still appear on your report.

Payment Plans

Some medical offices will set up payment plans before sending your debt to collections. Contact the collection agency if your debt has already been sold. You can often arrange payments at a rate you can afford.

Settlement Options

Paid collections look better than unpaid collections on your credit report. You might be able to settle for less than the full amount. Settlements are not positive for your credit score, but they beat leaving debt unpaid.

Statute of Limitations

The statute of limitations determines how long a creditor can legally collect on debt. This period varies by state and debt type. You technically still owe the debt after the statute expires. The law simply prevents collectors from taking you to court.

Check Your Credit Reports

After paying off medical debt, verify that the collection agency notified the credit bureaus. Your account should show as paid in full. Request free copies of your credit reports from all three agencies once yearly. Dispute any inaccuracies immediately, especially if months have passed since you paid.

Rebuilding Credit After Medical Collections

Rebuilding credit with collection accounts on your report takes effort. Pay off all past-due debts first. Bring any past due accounts to current status.

Make all payments on time going forward. Payment history significantly impacts your credit scores. The collection account will affect your scores less as time passes.

Pay down credit card balances to improve your utilization rate. Your credit utilization ratio has a huge impact on credit scores. Lowering balances can raise your scores quickly.

You do not need a lawyer to fight most medical debt. Gather information about the debt. Look for violations of the FDCPA. Ask collectors to prove your responsibility. Consider settling as a last resort. Never ignore debt collectors.

When You Should Consider Legal Help

Some situations do require professional assistance. Consider getting help if:

You have been served with a lawsuit for medical debt
The debt amount exceeds several thousand dollars
You believe the debt resulted from medical billing fraud
The collector violated the FDCPA multiple times
You need help negotiating a settlement on large medical bills

Our partner Solo helps you respond to debt collection lawsuits in minutes. You can answer the lawsuit and protect your rights without expensive attorney fees.

Frequently Asked Questions

What happens when medical bills go to collections?

When medical bills go to collections, the debt is sold to or assigned to a collection agency. The debt gets reported to credit bureaus and stays on your credit report for seven years from the original delinquency date. Your credit score will drop, but you can still negotiate payment plans or settlements with the collection agency.

How do I dispute incorrect medical bills in collections?

Request proof of the debt from the collection agency and gather documentation showing what you have paid. File a dispute with any credit bureau reporting the error. The Fair Credit Reporting Act requires bureaus to investigate all disputes within 30 days. If the collector cannot prove you owe the debt, they cannot legally collect it.

Can I settle medical debt for less than I owe?

Yes, you can often settle medical debt for less than the full amount owed. Collection agencies may accept a lump sum payment that is 40-60% of the original debt. While settlements hurt your credit score, they are better than leaving the debt unpaid and risking a lawsuit.

Do I need a lawyer if I am sued for medical bills?

You do not necessarily need an expensive lawyer if you are sued for medical debt. You can respond to the lawsuit yourself by filing an Answer with the court, disputing the debt, and raising affirmative defenses. Getting help to draft your response ensures you meet deadlines and protect your rights.

How long can collectors sue me for medical debt?

The statute of limitations for medical debt varies by state, typically ranging from three to ten years. After this period expires, collectors cannot take you to court, though you technically still owe the debt. The debt remains on your credit report for seven years from the original delinquency date.

Do I Need a Lawyer for Medical Bills? Your Options Explained