Quoted: They can put a lien* on your real estate if you own any, if you ever want to sell the property the debt has to be settled to release it.
*That may be the wrong term, but the rest of it is correct.
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To do that, they must get a court judgement. There is a "workman's lien" than can be filed (without a court order) against property which expires after one year but is renewable.
I once got a letter from a credit company telling me they would be glad to help me overcome my mortgage foreclosure. The house was paid for and had been for several years prior to that. All lien releases had been filed so I knew it was a real pile of bull sh*t. The credit company got nervous as hell about it when I called. It seems the OKlahoma County Court Clerk has misfiled a lawsuit against me under home foreclosures. So the Court Clerk misfiled a mortgage foreclosure against me by mistake, caused some credit problems that took quite a while to straighten out.
I have health insurance, met my deductible and limit of out of pocket expenses back in September. I am still getting bills that the health insurance has "denied" and waited almost 4 months to do so. A couple of them are in the $2000 to $3000 range. I'm sure before it's over, I am going to have to visit the Oklahoma County Court Clerk to see if anything has been filed against me. They file, never serve you papers, then when you apply for a loan, you have to pay them to clear your credit to get the loan. A dirty little trick that some collection agencies use.
I just found one the other day from 2001 that was a measly $80 for a service never rendered, that is now $120. And another one from MetroCall when I cancelled a pager I carried. They wanted $50 to cancel the pager when I had given them notice months before I would not renew. They figured any revenue, whether it was justified or not, was worth trying for. So they turned it over to a collection agency which also filed against my credit.
Neither has hurt me because I have too many "on time, never late" on my credit history. It rates over 800 which is pretty good. But it doesn't take much for them to screw you over if you don't watch them.
To make a long story short, the mortgage company I used last year to purchase my new home very seldom takes into account any bad reports concerning medical bills. It seems that a large percentage of wage earners have some type of black mark on their credit history that comes from medical bills.