Unexpected medical bills can be financially overwhelming—especially when they end up in the hands of collection agencies. If you’re dealing with medical debt in Texas, it’s important to understand what happens when your account goes to collections and what your legal options are to regain control of your finances.

This blog discusses the legal challenges of medical debt and collection practices.

How Medical Debt Ends Up in Collections

When hospitals or clinics don’t receive payment after several billing attempts, they may sell your account to a third-party collection agency or assign it for collection. This means:

 

  • You’ll start receiving calls, letters, and possibly even threats from collectors.
  • The original provider may no longer be involved.
  • The collector may add fees, interest, or other costs to your balance.

 

Once your medical debt is in collections, it becomes a legal liability—and the collection agency may file a lawsuit against you.

Your Legal Rights in Texas

Under federal and Texas law, you have specific protections when dealing with debt collectors:

 

  • Fair Debt Collection Practices Act (FDCPA): Protects you from harassment, deception, or abusive tactics.
  • Texas Debt Collection Act: Offers state-level protection and allows you to request validation of the debt.

 

Collectors must notify you in writing about the debt and give you 30 days to dispute it.

 

If you believe a debt collector has violated your rights or filed a lawsuit without proper documentation, an attorney can help you fight back.

How Medical Debt Affects Your Credit

Medical debt can have a serious impact on your credit score—especially once it reaches collections. However:

 

  • Most major credit bureaus wait 180 days before listing unpaid medical debt, giving you time to resolve it.
  • Paid medical debts no longer appear on credit reports from Equifax, Experian, and TransUnion.

 

Unpaid debts, however, can remain for up to seven years, damaging your credit and affecting your ability to rent, borrow, or qualify for certain jobs.

 

Addressing the issue early with legal assistance may prevent long-term credit consequences.

When to Involve an Attorney

It’s time to speak with an attorney if:

 

  • You’ve been sued over medical debt
  • The collector can’t provide documentation
  • You feel harassed or threatened
  • You’re considering relief through Chapter 7 or Chapter 13 bankruptcy

 

Bankruptcy may not be your first choice, but it can offer medical debt relief when no other option is viable. Legal guidance ensures you choose the right approach—whether it’s disputing the debt, negotiating a settlement, or filing for bankruptcy relief.

Pile of cash next to medicine
Facing aggressive collection tactics over medical debt? Learn your legal options before it’s too late.

If you’re struggling with medical debt, the Law Office of Joel Gonzalez can help you explore your best legal path forward. I represent individuals across the Southern District of Texas and focus on solutions that offer long-term relief. I assist with debt relief service, debt collection lawsuits, and stopping harassment from medical debt collection agencies. If you’re looking for a debt relief attorney in Corpus Christi who understands the system and fights for your financial future, contact me today.

 

Let’s find the right solution to your debt problem—before the collections process gets worse.