What Happens When You Don't Pay Medical Bills?

Medical bills can show up when you least expect them—and when you're least prepared. Whether it’s a surprise ER visit or a specialist copay that wasn’t covered by insurance, unpaid medical bills can quickly spiral into bigger problems.

But what happens if you don’t pay medical bills? Can you be sued? Do they hurt your credit score? And what are your options if you simply can’t afford to pay?

Update on: December 10, 2025. This article has been reviewed and updated using the most recent publicly available information on medical billing, collections, and credit reporting practices as of the date above. Policies and laws can change, so always confirm details with official or professional sources.

Disclaimer: This content is for informational and educational purposes only and is not financial, legal, insurance, or medical advice. It does not guarantee any outcome, and you should speak with a qualified professional about your specific situation.

Key Takeaways

• After a July 2025 federal court ruling, a CFPB rule that would have banned medical debt from credit reports was vacated. However, the three major credit bureaus still voluntarily exclude many smaller medical collections (such as those under $500) and give consumers more time before new medical debts are reported.
• Larger, unpaid medical bills may still affect your credit.]Unpaid medical bills can go to collections after 60–180 days, leading to persistent contact from debt collectors.
• Credit reporting protections for medical debt were reversed in July 2025. Small balances may once again affect your credit, so monitor accounts closely.
• You can’t be jailed for unpaid medical debt, but you may face lawsuits or wage garnishment if it's ignored too long.
• Negotiating payment plans or applying for hospital assistance can significantly reduce or eliminate what you owe.

What Happens If You Don't Pay a Medical Bill?

1. Your Medical Debt May Go to Collections

If you don’t pay a medical bill within a few months, most providers will eventually send it to collections. This is usually after 60 to 180 days.

Once in collections, a debt collector will begin contacting you to arrange payment. While it’s stressful, you still have options at this point, including negotiating a lower amount or setting up a payment plan.

Important: The Fair Debt Collection Practices Act (FDCPA) protects you from harassment. Collectors must follow legal rules when contacting you.

Legal Update from July 15, 2025: Medical Debt Has Returned To Credit Reports

A major federal court decision in July 2025 vacated the Consumer Financial Protection Bureau's (CFPB) medical debt rule, which would have removed most medical debt from U.S. credit reports and banned lenders from using it in credit decisions. As a result, medical debts—especially larger, unpaid balances—may continue to appear on credit reports and influence creditworthiness.

However, the three nationwide credit reporting agencies (Equifax, Experian, and TransUnion) still voluntarily:

• Remove paid medical collection debt from credit reports.

• Delay reporting of new medical collections for one year, giving consumers more time to resolve billing and insurance issues.

• Exclude medical collection debt with an initial reported balance under $500 from consumer credit reports.

This means small medical collections may stay off your report, but larger unpaid balances can still hurt your credit. Because rules and industry policies evolve, it’s important to monitor your credit reports regularly.

2. You Might Get Sued (But It’s Rare)

In some cases—especially for larger balances—medical providers or collection agencies might file a lawsuit to recover the debt. If they win the case, the court could issue a judgment, which may lead to wage garnishment or liens.

However, lawsuits for medical debt are less common than for credit card or personal loan debt. Most providers would rather work out a payment plan than go to court.

If you receive a court summons or lawsuit notice, do not ignore it. Respond by the deadline and consider contacting a legal aid organization or consumer attorney in your state.

Legal Consequences of Not Paying Medical Bills

Here are the effects of unpaid medical bills, and how it is possible for the consequences to increase in serverity:

1. Collections: The First Legal Step. When medical charges go unpaid—typically after about 90 days—they're often sold to or handled by debt collectors. Expect persistent calls, letters, and further demands for payment.

2. Credit Hits: Lasting Damage. Although hospitals don’t directly report debts, once they move to collections, those marks can hurt your credit score. That said, recent reforms mean medical debts under $500 won't show up, and reporting is delayed by one year—but once listed, they can linger for up to seven years.

3. Lawsuits, Wage Garnishments & Liens. If collections don’t persuade, legal action can follow. Courts may issue judgments leading to wage garnishment, bank account levies, or even liens on your property. Ignoring court orders—even if you can’t pay—can lead to contempt charges and, in rare cases, jail time.

4. Unpaid Debt Doesn’t Just Disappear. Medical debt eventually goes away only when paid, forgiven, or written off. Even after the statute of limitations expires—typically three to six years, depending on your state—you may still owe it, though creditors may no longer sue.

Review the table below for more details.

Do Medical Bills Affect Your Credit?

Yes, but not as harshly as they used to. Thanks to updated credit reporting policies, medical debt affects your credit less than other types of unpaid debt.

Here’s what changed:

• Medical collections under $500 no longer appear on your credit report.
• Medical debt won’t show up for 12 months, giving you time to resolve the issue.
• Paid medical collections are removed from your credit report entirely.

That said, large unpaid medical debts that stay in collections can still damage your credit score and make it harder to qualify for loans, credit cards, or mortgages.

What to Do If You Can’t Pay Medical Bills

If you’re staring at a bill you can’t afford, here’s a smart plan to stay ahead:

1. Review the Bill for Errors

Always ask for an itemized medical bill and compare it to your insurance’s Explanation of Benefits (EOB). Billing mistakes—like duplicate charges or incorrect codes—are more common than you’d think.

Dispute anything that doesn’t look right before you pay.

2. Negotiate or Set Up a Payment Plan

Call the provider and ask:

“Can I set up a payment plan that works with my budget?”

Most hospitals and clinics offer zero-interest payment plans, especially if you contact them early. Even a $20/month plan can keep your bill from going to collections.

3. Ask About Financial Assistance Programs

Many hospitals—especially nonprofits—offer charity care or income-based discounts. Even if you earn a steady income, you might qualify for a reduced balance or bill forgiveness.

Ask the billing office:

“Do you offer any hardship or financial assistance programs?”

4. Avoid Using Credit Cards for Medical Bills

Putting a medical bill on a credit card can turn no-interest debt into high-interest financial stress. Credit card APRs often exceed 20%, which adds up fast if you’re carrying a balance.

Instead, consider:

• Personal installment loans (fixed terms, predictable payments)
• Medical financing plans (some offer 0% intro APR)
• Emergency cash loans from Simple Fast Loans—even with bad credit

5. Keep Records of Everything

Track all:

• Payment receipts
• Emails or letters from the provider or collection agency
• Conversations and agreements (write down dates and names)

Having a clear paper trail protects you in case the bill resurfaces later or there’s a dispute.

Step	Action	Details	Key Questions/Reminders
1. Review the Bill for Errors	Request an itemized bill and compare it to your Explanation of Benefits (EOB)	Look for duplicate charges, incorrect codes, or procedures you didn’t receive	Dispute any discrepancies before paying
2. Negotiate or Set Up a Payment Plan	Call the provider to ask about affordable payment options	Many offer zero-interest plans if contacted early; even $20/month helps prevent collections	Ask: “Can I set up a payment plan that works with my budget?”
3. Ask About Financial Assistance Programs	Inquire about hardship or income-based aid	Nonprofit hospitals often provide discounts or full forgiveness based on income	Ask: “Do you offer any hardship or financial assistance programs?”
4. Avoid Using Credit Cards	Don’t transfer medical debt to high-interest credit cards	Credit card APRs often exceed 20%, making debt harder to manage	Alternatives: • Personal installment loans • Medical financing with 0% intro APR • Emergency cash loans from Simple Fast Loans
5. Keep Records of Everything	Document all payments and communications	Track receipts, letters, emails, and conversations (include names and dates)	This protects you if the bill resurfaces or a dispute arises

Can You Go to Jail for Unpaid Medical Bills?

No. Medical debt is considered “civil debt,” not criminal. You can’t be arrested or jailed for unpaid hospital bills in the United States.

However, a lawsuit could lead to wage garnishment or liens if you don’t show up in court, so never ignore legal documents.

If you receive court papers, contact a legal aid organization or consumer attorney right away. Many offer free or low-cost consultations.

Don’t Ignore Medical Bills, Take Action Instead

Unpaid medical bills can cause stress, but they don’t have to ruin your finances. If you take proactive steps—like checking for errors, setting up a payment plan, or asking for help—you can avoid the worst-case scenarios.

And if you need fast cash to cover a medical emergency or avoid collections, Simple Fast Loans is here to help. We offer short-term loan options with fast approval, even if your credit isn’t perfect.

Note: The content provided in this article is for informational purposes only. Contact your financial advisor regarding your specific financial situation.