Can You Go to Jail for Medical Debt?

Healthcare is expensive. Even if you have great insurance, you could end up with a pile of bills for care that isn't covered. When medical bills pile up and you can't pay them, you might worry that you could go to jail.

But take a deep breath—you can't go to jail just for medical debt. You could end up in front of a judge if your healthcare providers or debt collectors sue you, however. 

Let's look at what could happen when doctor bills go unpaid—and how debt relief could help when you're overwhelmed by medical bills or other debts. 

Can You Go to Jail for Medical Bills?

Medical bills are civil debts, not criminal ones. This means you can't go to jail simply because you can't pay. 

You could, however, still end up in court if you're sued for unpaid medical bills. A debt lawsuit can happen if your healthcare provider believes there's no other way to get you to pay what's owed. 

The Fair Debt Collection Practices Act (FDCPA) protects you when you owe medical bills and other debts. It states that a debt collector can't threaten to have you arrested if you don't pay. If they do, that's considered harassment, and you could sue them for violating your rights. 

However, the FDCPA isn't a get-out-of-jail-free card for debtors. If you're sued for medical bills and you ignore a court order related to the case, the judge could hold you in contempt. In that scenario, you could be arrested for violation of the order, but not for the debt itself. 

What Happens If You Don't Pay Medical Bills?

Several things could happen if you don’t pay a medical bill. Your healthcare provider will likely send you several requests to ask for payment. If those go unanswered, your account could be turned over to collections. 

At that point, you may get more letters or calls with requests for payment from the debt collectors. The FDCPA gives you the right to ask a debt collector to not contact you, but it doesn't make the debt go away. 

At some point, the debt collector may sue you. You have the right to submit an answer to a summons and state a defense. But if the judge rules in the debt collector's favor, you're ordered to pay the debt. Debt collectors who sue and win could force payment through one of two methods, both of which require additional court action: 

• Wage garnishment means your employer sends money from your paychecks to the debt collector until the debt is paid off. Federal law limits how much of your pay can be garnished, and only a handful of states allow garnishments for consumer debts. 

• Bank account garnishment means the bank takes money from your bank account and gives it to the debt collector to satisfy a debt. If your bank gets a court order for a garnishment, your account can be frozen. You may have a set time in which you can challenge the garnishment order. Some states have laws limiting how much money can be garnished at one time, and federal law protects certain types of deposits from garnishments.  

With a court order, a debt collector could also put a lien on your home or other property for unpaid medical debt. A lien prevents you from selling or refinancing the home until the debt is paid. 

Does Medical Debt Hurt Your Credit?

Unpaid medical debt could hurt your credit. In some states, healthcare providers and debt collectors can report certain unpaid medical bills to the credit bureaus. Delinquent accounts that show up on your credit reports could knock points off your credit scores when included. 

If you're sued for medical debt, the judgment could show up on your credit report, but it doesn't affect credit score calculations. However, if you apply for a loan, lenders could see a judgment for medical debt as a red flag. 

A rule finalized by the Consumer Financial Protection Bureau (CFPB) under President Biden would have removed medical collections from credit reports. However, that rule was blocked following a legal challenge from the Trump administration. 

How to Get Debt Relief for Medical Bills

Debt relief could offer solutions when you have medical bills you can't pay. You can try DIY debt relief methods, or get professional help from a debt specialist.

Here are some of the options you might consider to tackle medical debt:

• Set up a payment plan: Your doctor or healthcare provider may offer a low-cost payment plan to help you pay off your medical bills over time. State laws often determine how long these plans can last, and what fees or interest rates providers may charge. 

• Apply for charity care: Charity care programs offer financial assistance to people who need help with medical bills. If you qualify, your care may be free or steeply discounted.

• Apply for Medicaid: Medicaid is a government-funded program that offers healthcare to low-income families and individuals. Eligibility is based on your household size, income, and assets; you can apply through your local social services department. 

• Consolidate medical debts: If you have fair credit, you could apply for a debt consolidation loan to pay off medical bills. When approved, you get cash to pay off medical debts, then repay the loan over time. 

• Negotiate: Many healthcare providers will negotiate your bills. You should also get an itemized copy of your bill and make sure you're only being billed for services provided. 

• Settle: Your medical provider or creditors may agree to accept less than what's owed and forgive the rest if you've had a significant financial hardship. You could negotiate a settlement yourself, or work with a company specializing in debt settlement. 

• File bankruptcy: Depending on your circumstances, bankruptcy is sometimes the best way to manage overwhelming medical debt. A Chapter 7 bankruptcy could discharge medical debts, credit cards, and personal loans if you're eligible. Check with a bankruptcy attorney to see if this is the right move.

If you're unsure which option might be right for you, it may help to talk to a debt specialist. A certified debt consultant can evaluate your debt situation and walk you through different solutions for dealing with medical bills. Schedule a free consultation with Freedom Debt Relief today by calling 1-800-910-0065.