Quick answer
If you ignore a medical bill, it can go to a collection agency, and if it’s large and stays unpaid for a year, it can land on your credit report. In some cases a provider or collector can sue, and a court judgment can lead to wage garnishment, a bank account levy or a lien, depending on your state. You won’t go to jail for medical debt itself, and there are usually ways to lower the bill or pay over time before it gets that far.
Key takeaways
- Unpaid medical bills often go to collections, but credit bureaus wait a year and skip medical collections under $500.
- Nonprofit hospitals generally must wait 120 days after the first bill before taking steps like lawsuits or credit reporting, and must check for financial assistance.
- A lawsuit can lead to wage garnishment, capped under federal law at 25% of disposable earnings or less.
- Medical debt isn’t a crime, but ignoring a court summons can lead to a judgment against you.
- Checking the bill, applying for financial assistance and setting up a payment plan can often stop things from getting worse.
On this page
What happens, step by step
| Stage | What to expect |
|---|---|
| First bills | Statements and reminders from the provider |
| Collections | The provider may send the debt to a collection agency, often after a few months |
| Credit report | Debt of $500 or more can appear after it’s a year past due, unless state law limits it |
| Lawsuit | The provider or collector may sue for larger debts |
| Judgment | If the court rules against you, garnishment, levies or liens may follow, depending on state law |
Credit damage
Medical debt that reaches your credit report can lower your score and make loans more expensive. Paid medical debt is removed, and medical collections under $500 aren’t reported. See do unpaid medical bills hurt your credit.
Lawsuits and garnishment
If you’re sued, respond to the summons. If you don’t, the court can enter a default judgment against you. With a judgment, a creditor may be able to garnish your wages, levy your bank account or place a lien on property, depending on your state. Federal law caps garnishment for ordinary debts at 25% of your disposable earnings or the amount above 30 times the federal minimum wage, whichever is less, and some states protect more.
Collectors also have to follow federal rules. When a collector first contacts you, you’ll get a notice about the debt, and you can dispute it in writing during the validation period, usually within about 30 days.
Ways to deal with a bill you can’t pay
- Check the bill against your explanation of benefits. Errors are common; see what is an explanation of benefits.
- Make sure insurance paid correctly. Appeal denials; see how to appeal a claim denial.
- Watch for surprise bills. The No Surprises Act bans most surprise bills for emergency care and from out-of-network doctors at in-network hospitals. Call the No Surprises Help Desk at 1-800-985-3059 if you think you got one. See what to do about out-of-network costs.
- Apply for financial assistance. Nonprofit hospitals must have financial assistance policies.
- Ask for a discount or payment plan. Many providers will lower the bill or spread it out.
- Check Medicaid. Medicaid can cover some bills from before you applied, usually up to three months back, though that window gets shorter for many people starting in 2027. See health insurance for low-income families.
For planning ahead, see what if you can afford your medical bills out of pocket and what happens if you can’t pay your deductible.
Better coverage means smaller bills: compare plans by ZIP code.
Frequently asked questions
Can I go to jail for not paying a medical bill?
No, unpaid medical debt isn’t a crime. But ignoring a court summons can lead to a judgment against you.
How long until a medical bill goes to collections?
It varies. Many providers wait a few months, and nonprofit hospitals must wait at least 120 days before serious collection steps.
Can a hospital sue me for an unpaid bill?
Yes. Nonprofit hospitals must first make reasonable efforts to see if you qualify for financial assistance.
Will an unpaid medical bill hurt my credit?
It can if it’s $500 or more and stays unpaid for a year, unless your state limits medical debt reporting.
Sources
This article is general information, not legal or financial advice. Last reviewed September 2026.