Credit Score Problems

The people who you owe medical bills to–whether they are doctors, insurance companies or other organizations–can report your late payments or nonpayments on your credit report. These late payments adversely affect the “Payment History” section of your credit report, which accounts for 35 percent of your FICO score. If you don’t pay, they can also get a judgment against you, which will show up on your credit report as well. These negatives can remain on your report for seven to 10 years, lowering your credit score and making it more difficult or expensive to qualify for mortgages, car loans, credit card and other types of debt.

Collections Calls
Many providers of medical services do not attempt to collect on unpaid bills themselves. Instead, they may sell the debt or contract the work out to collections agencies. Some of these collection agencies can be very aggressive in trying to collect the debt, so you may begin to receive calls, letters or other forms of contact on a regular basis if you do not send payments.

Legal Action
If you do not pay your medical bills, the people you owe money to can file a lawsuit against you to recover the debt. If you lose the lawsuit because they can prove you owe the debt and didn’t pay, a whole host of legal problems may follow. For example, the court may place a lien on your home or other property, precluding you from selling the house. The court also can garnish your wages in some cases, which means money will be automatically taken out of your paychecks until the debt is paid in full and the judgment is satisfied.

Source: ehow.com