Turbo Takeaways

When you have unpaid medical bills, your lenders can take legal action against you. However, you can’t go to jail unless you fail to show up in court when you are sued for medical debt, or you do not make court-ordered payments on your medical debt.

Having large medical bills can be a burden, especially when you don’t have health insurance. Even if you have coverage, your insurance company will not cover the full bill, no matter how small it is. Unpaid medical bills affect millions of Americans, with over $88 billion in medical bills in debt collection.

But can you go to jail for not paying your medical bills? If you are worried about the possibility of going to jail over an unsettled medical bill, it’s important to understand that there are many things you can do to avoid jail time. For example, showing up in court when needed and taking proper action to settle your account can help prevent legal consequences.

Read on to learn more about what to do about unpaid medical bills and how to avoid jail.

Can You Go To Jail for Not Paying Medical Bills?

It’s unlikely you’ll go to jail for not paying medical bills. The only circumstances under which you may go to jail are for failure to appear when not showing up in court when you are required to do so. You could also face jail time for contempt of court, such as not making court-directed payments or failing to follow a judge’s ruling.

States Where You Can Go to Jail for Debt

The laws in each state vary, but if you reside in certain states, you can go to jail. Again, this is not directly because of owing a debt but due to contempt of court. Here are the states where you can go to jail:

  • Arizona
  • Arkansas
  • California
  • Colorado
  • Florida
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Kansas
  • Louisiana
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Missouri
  • Nebraska
  • Ohio
  • Oregon
  • Pennsylvania
  • Rhode Island
  • Tennessee
  • Texas
  • Utah
  • Washington
  • Wisconsin

Cases of Jail Time for Unpaid Medical Bills

Understanding how unpaid medical bills can lead to jail time is the best way to avoid it. You can’t be arrested just because you failed to pay your medical bills on time. Owing a debt, whether it is medical debt, credit card debt, or any other type of debt, is not a reason why you can be arrested.

However, if your lenders sue you in civil court, it could indirectly lead to jail time if you disobey a court order. This is known as contempt of court, and it can lead to jail time in two scenarios:

  1. You fail to show up in court for your court date.
  2. You do not make court-ordered payments on your debt.

A specific example of this is from Coffeyville, Kansas, where dozens of patients were sent to jail. The patients were asked to appear in court every three months for a “debtor’s examination.” When two hearings were missed, a bench warrant was issued for each patient for failure to appear, which is an example of indirect contempt of court. Indirect contempt of court occurs when contempt charges are issued due to conduct outside of the courtroom.

Dozens of Coffeyville citizens were sent to jail when they failed to appear in court for their debt exams.  

What Can Happen When You Don’t Pay Medical Bills

While it’s unlikely that you’ll go to jail because of medical debt, there are several consequences that you should be prepared for, as listed below.

Fees and Penalties

The longer you wait to pay off your medical bills, the worse the situation can get. The first thing a lender will do is add penalty fees to your outstanding bills. These can add up quickly and increase your total outstanding amount.

Credit Score Damage

Unpaid medical bills may hurt your credit scores, even though credit bureaus have several measures in place to minimize the impact of medical debt on credit reports.

Collection Action

If you fail to pay for three months or longer, your debt may go into collections. The collection agency may call you and pressure you into paying your outstanding debt. You may receive a lot of debt collector calls, which can be very stressful.

Legal Action

You may be sued by the debt collector if you don’t repay what you owe, and this may result in wage garnishment or levies. If you have no assets or income that can be garnished, you may be asked to appear in court.

If you fail to appear in court, or if you are in contempt of the court, you may be arrested in some states. So while you can’t technically be arrested for owing a debt, you can be arrested for being in contempt of court due to the debt.   

It’s best to consult a wage garnishment lawyer as soon as possible to evaluate your options if you’re at risk of legal action.

What To Do When You Have Unpaid Medical Bills

If you have large medical bills and are unable to pay them, it may be time to seek medical debt relief. There are several things you can do to deal with your debt to ensure that your lender doesn’t take legal action against you.

Communicate with Medical Providers

Talk to your medical providers and explain your situation. Many hospitals, physicians, and dentists can offer no-interest or low interest payment plans to make debt repayment easier. Negotiate the terms and talk to them about how much you can afford as monthly payments.

You can also negotiate with them to waive billing charges or any fees on your medical bills to make them more affordable. Many healthcare providers and hospitals may also have income-driven hardship plans. If you have low income, high medical bills, or are facing financial hardship, you may qualify for financial assistance.  

Seek Legal Assistance

If you are facing legal action or think your lenders may sue you, it’s best to seek legal assistance as soon as possible. Talk to a qualified, experienced lawyer who is knowledgeable about the regulations surrounding medical debt collections. Other than tackling any errors on your bills, a lawyer can also negotiate on your behalf with collection agencies.

Explore Alternative Options

Having large, outstanding medical bills can be stressful and distressing. There are a number of alternative options available to tackle your debt.

Debt Settlement

Consider working with a professional to settle your medical debts. With debt settlement, you can negotiate with your lenders to accept a lump sum settlement amount that is less than what you currently owe.

If your lenders accept the reduced amount as part of the settlement you propose, the remaining amount will be forgiven. Ideally, you should start the process at the earliest to avoid legal action.  

Debt Consolidation

If you have a good credit score and a lot of medical bills, consider debt consolidation. This can be done through a 0% APR credit card or a low-interest personal debt consolidation loan. You can use the funds to pay off your medical bills. You’ll then have a single, affordable payment each month.

If you opt for a 0% balance transfer credit card, it is important to remember that the introductory 0% APR is only available for a relatively short predetermined time frame. You’ll need to pay off your balance during that period to avoid high interest charges on the remaining balance.

Credit Counseling

Another option to consider is credit counseling. Work with a credit counselor or a medical debt advocate to help navigate your situation better. A counselor can review your bills, budget, and your overall financial situation to help you create a personalized repayment plan.

They can also enroll you in a debt management plan to help you pay off your bills quickly and in a cost-effective manner. Credit counseling is offered by several non-profit agencies and is often available for free, or at a very low cost.

Bankruptcy

If no other options work, bankruptcy is usually the last resort available. Medical bills are a form of unsecured debt, so they may be eliminated through bankruptcy. There are two main forms of bankruptcy- Chapter 7 and Chapter 13. They are two very different ways to file for bankruptcy protection, each with its own advantages and disadvantages. 

A bankruptcy lawyer can help you determine if bankruptcy is right for you. It is important to remember that bankruptcy can be expensive, it is permanent in its effect and has serious long-term implications. It should only be considered if you have exhausted all other options.     

How To Avoid Going to Jail Because of Medical Debt

Now that you understand more about unpaid medical bills and potential jail sentences, let’s talk about how you can avoid this situation. Listed below are a few tips to follow:

  • Know your rights as a borrower. Lenders and debt collectors cannot legally threaten you with prison because they can’t enforce that. Other than a judge, nobody can sentence you.
  • If a lender has sued you, respond to it on time. Do not ignore it.
  • If you are summoned, do not fail to show up at the hearing.
  • If the court has ordered you to pay off a debt, you must obey the court order, fully and completely.  

Know your rights as a borrower and learn more about the Fair Debt Collection Practices Act (FDCPA). Keep a copy of your medical records, and always seek legal advice if a lender sues you.

Settling a debt is easier and a better option than ignoring hearings and court orders. If you have over $10k in debt, it is best to consider debt settlement to pay off your debt sooner.

At TurboDebt, we can help you resolve your medical debt. Connect with us for a free consultation today. Our team will be happy to help you find the right debt relief option to resolve your financial challenges.