Texas/New Mexico Stateline | I have no personal experience, but have always heard:
Will show as bad debt on credit reports first. Can affect anything from obtaining new debt, renting a house, to higher car insurance quotes. (People with high debt have more insurance claims)
Then will get calls, starting off mildly rude moving to insulting and vulgar if it gets handed off to debt collectors with no scruples.
Last step is possibly lawsuit and get a judgement to garnish wages. That only happens for big enough debts they can justify the legal fees.
Thing about debt collection, is debt is a commodity. Hospital puts together all their bad accounts and sells them to debt collection companies. Companies will pay a fraction of the debt due, hospital gets a little out of it and doesn't have to mess with it anymore and moves on. Debt collector company is entitled to collect the whole debt plus interest and fees....if they can get it.
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