How it escalates
- More letters — repeated billing notices
- Collections referral — usually within 120-180 days
- Collection calls and letters
- Credit reporting — unpaid debt over $500 after one year
- Lawsuit — collection agency may file to recover the debt
- Judgment and garnishment — wage garnishment or bank levies may follow
⚠ Lawsuits for medical debt are realHospitals and collection agencies do file lawsuits for unpaid medical debt, including relatively small amounts. A default judgment can result in wage garnishment.
What to do instead
Engaging is almost always better than ignoring. Options include financial assistance, disputing incorrect charges, setting up a payment plan, or requesting a settlement.
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Check my bill free →General information only. Not legal advice.