Consequences for Unpaid Medical Debt

Dealing with unpaid medical bills is a problem that many people face on a regular basis. With the rising cost of health care, it is easy to accumulate a relatively large bill from a medical provider. When you have medical debt that you cannot afford to pay, you may have to face a number of consequences.

Credit Profile

When you have medical debt that goes unpaid, the medical facilities can report this to the credit bureaus. If you have several accounts showing up on your credit report, it can lower your credit score. When you try to apply for financing in the future, prospective lenders can see that you owe the debt. This could negatively affect you when it comes to being approved for financing or credit of any kind. If you pay off the accounts, you can have them removed from your credit report.

Collection Actions

When you have unpaid medical debt, the medical facilities will most likely try to contact you to collect the debt. You should expect several phone calls from the collections agency that the medical facility uses. The collections agency might also send you letters and statements, telling you how much you owe. If you do not want to continue receiving collection calls, you can ask the collections agent to communicate with you in writing. You could also hire a lawyer and then all collection calls will have to go through him.

Lawsuit

Once the debt gets to a certain point, the medical facility could potentially file a lawsuit against you. When the medical facility filed a lawsuit against you, you will be served a summons by your local court system. You will then be expected to show up in court on a certain date. Once the court hears the medical facility's case against you, it will usually issue a judgment in its favor. Unless you can prove that you have already paid or do not owe the balance, you will usually be expected to pay at that point.

Wage Garnishment

When the medical provider gets a judgment against you, you may then face a wage garnishment. The creditor can get a writ of execution from the court which allows it to set up a wage garnishment. This allows the creditor to take money directly out of your paycheck before you receive it from your employer. To stop a wage garnishment, you either have to pay off the debt, negotiate a payment plan or file for bankruptcy.