Your Rights When You Can't Pay a Medical Bill

Medical debt and credit reporting

Significant changes to medical debt credit reporting took effect in 2022 and 2023. The three major credit bureaus — Equifax, Experian, and TransUnion — no longer include paid medical debt on credit reports. Additionally, medical debt under $500 is no longer reported, and unpaid medical debt must be at least 12 months old before it can appear on a credit report (up from 6 months). The Consumer Financial Protection Bureau has proposed rules that would remove all medical debt from credit reports entirely.

Debt collection rules

Medical debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). Under this law, collectors cannot call before 8 AM or after 9 PM, cannot use abusive or threatening language, must provide written verification of the debt upon request, and must stop contacting you if you send a written request to cease communication. Violations of the FDCPA can be reported to the CFPB and the FTC.

Statute of limitations

Medical debt has a statute of limitations — a time limit after which a creditor cannot sue you to collect. This varies by state, typically ranging from 3 to 10 years. After the statute of limitations expires, the debt is "time-barred" and you cannot be successfully sued for it. However, making a payment or acknowledging the debt in writing can restart the clock in some states.

Bankruptcy and medical debt

Medical debt is dischargeable in bankruptcy. Chapter 7 bankruptcy can eliminate most unsecured medical debt, though it has significant long-term credit consequences. Chapter 13 allows you to restructure debt into a payment plan. Consult a bankruptcy attorney before pursuing this option.

Negotiating after a bill goes to collections

Even after a medical bill goes to collections, you can still negotiate. Debt collectors often purchase medical debt for pennies on the dollar and may accept 20–50% of the original balance as payment in full. Always get any settlement agreement in writing before making a payment.