You Must Respond
If served with a lawsuit for medical debt, you MUST file a written response (called an 'answer') by the deadline stated in the papers (typically 20-30 days). If you do not respond, the court enters a default judgment against you, and the creditor can begin garnishing wages and levying bank accounts. Even if you owe the money, respond to preserve your rights and defenses.
Common Defenses
Statute of limitations (debt is too old to sue on -- check your state's limit). Wrong amount (billing errors, double-counting, charges after insurance should have paid). Wrong person (identity confusion, incorrect account). Hospital failed to offer charity care as required by the ACA. Debt was already discharged in bankruptcy. Insurance should have covered the charges.
Settlement Before Trial
Most medical debt lawsuits settle before trial. Once you file an answer, you can negotiate. Hospitals and collectors often accept 30-60% of the claimed amount. Payment plans are common. Some courts have mandatory mediation for debt cases. Having an attorney dramatically improves settlement outcomes.
Bankruptcy Stops the Lawsuit
Filing bankruptcy immediately stops any pending lawsuit through the automatic stay. If you are overwhelmed by medical debt lawsuits, bankruptcy may be the most efficient solution -- it stops all lawsuits simultaneously and eliminates the underlying debt. You do not need to defend each case individually.
Frequently Asked Questions
What happens if I ignore the lawsuit?
The court enters a default judgment. The creditor can then garnish your wages (up to 25% in most states) and levy your bank accounts. Always respond to a lawsuit, even if you owe the debt.
Can I get free legal help for a medical debt lawsuit?
Yes. Legal aid offices and pro bono programs help with debt defense cases. Some consumer attorneys take defense cases on contingency if there are FDCPA or billing violations. Check lsc.gov for local legal aid.
How long does a medical debt judgment last?
10-20 years depending on the state, and judgments can usually be renewed. This is why responding to the lawsuit and considering bankruptcy are both important -- a judgment follows you for a long time.
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