As of late 2025, 15 states have enacted laws that ban or significantly restrict medical debt from appearing on consumer credit reports, protecting credit scores from medical financial burdens. Key states with these protections include California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington.
About 15 states, including California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington, have laws restricting or banning medical debt from credit reports, though federal legal challenges and conflicting CFPB rules create uncertainty about their enforcement, with some states recently passing stronger measures like limiting reporting thresholds or interest.
If you have debt in the U.S., it usually won't disappear when you relocate. Creditors may still try to collect, and unresolved issues could resurface if you return home. Before you pack your bags, it helps to know how international moves can affect your debt, credit history, and financial options going forward.
If you don't pay medical bills in the U.S., they often go to collections, hurt your credit score, and can lead to lawsuits, wage garnishment, or liens on property, though many providers offer payment plans or financial aid; contacting your provider early is key to avoiding severe consequences like aggressive collection and legal action.
No. Debt is a purely civil matter in the US. At worst they can sue you. Only downside of traveling is you might miss a summons and a court date which would result in a summary judgement against you.
About the debt relief program
Public Health partnered with the non-profit organization Undue Medical Debt to implement the program. Residents started to receive letters to say their debt was canceled in May 2025 and, as of December 2, 2025, over $363 million of medical debt has been erased for over 171,000 residents.
The 7-in-7 rule (or 7x7 rule) in debt collection, part of the CFPB's Regulation F , limits how often debt collectors can call a consumer about a specific debt: they cannot call more than seven times within seven consecutive days, nor can they call again within seven days of a conversation about that debt, preventing harassment and abusive practices, though these are rebuttable presumptions of compliance.
5 Useful Tips to Help You Erase Medical Debt
Introduced in House (10/19/2023) This bill prohibits consumer reporting agencies from including medical debt on a consumer report (i.e., credit report).
The rule removes a financial information exception for medical accounts and adds a restriction that forbids consumer reporting agencies from supplying medical account information to creditors when they determine a person's ability to take on new debt or expand existing obligations.
Top 10 States with Highest Medical Debt Rates
Tell your doctor or the billing representative how much you can pay and how often you can pay it. If they ask for more money or more frequent payments, explain that you are unable to do it. Ask them to write up a payment agreement that you can afford. Make sure that you make your payments on time.
No, a hospital cannot turn you away from the emergency room for owing money due to federal law (EMTALA), requiring stabilization for emergencies regardless of ability to pay; however, for non-emergency care, hospitals can refuse treatment, require deposits, or stop services for unpaid bills, especially for private hospitals, though nonprofit hospitals must follow specific financial assistance policies before extreme collections, notes Massachusetts Legal Help and NCLC Digital Library.
Yes, unreimbursed medical expenses can be tax deductible in the U.S., but only if you itemize deductions on Schedule A and your total qualified expenses exceed 7.5% of your Adjusted Gross Income (AGI). Deductible costs cover diagnosis, cure, mitigation, treatment, or prevention of disease, including doctor visits, prescriptions, dental/vision care, and medical travel, but exclude general health expenses like most vitamins or insurance payments.
The 11-word phrase often cited to stop debt collectors is "Please cease and desist all calls and contact with me, immediately," which leverages your rights under the Fair Debt Collection Practices Act (FDCPA) to halt most communication, though it must be sent in writing via certified mail to be legally binding, and collectors can still notify you of lawsuits.
While negative credit marks usually fall off after seven years and legal enforcement often ends, the debt itself doesn't vanish. You still technically owe the money on the debt, and debt collectors may continue to reach out, even if it's just to request payment rather than demand it in court.
You can't go to jail for unpaid debts (unless fraud is involved). Debt collectors have limits—no harassment, no late-night calls, no false claims. Ignoring debt can lead to court—lawsuits, wage garnishment, or liens. Wage garnishment is legal—but only with a court order (exceptions for CRA/child support).