Medical debt laws vary dramatically from state to state. The statute of limitations (how long a collector can sue you), wage garnishment rules, and credit reporting protections all depend on where you live. This guide summarizes the laws in 25 states — click any state for the full guide including citations, action steps, and model letters.

Quick Answer Medical debt laws — including how long a collector can sue you and whether they can garnish your wages — vary by state. Three states (Texas, Florida as head-of-household, North Carolina for consumer debts) ban wage garnishment entirely. New York and Maryland recently cut their statute of limitations to 3 years. California and Nevada now bar medical debt from appearing on credit reports.

Key Medical Debt Terms Explained

Statute of Limitations (SOL)

The statute of limitations is the time window in which a creditor can file a lawsuit to collect a debt. After it expires, the debt is "time-barred" — the collector cannot win a court judgment against you. Medical debt SOLs range from 3 years (New York, Maryland) to 6 years (California, Michigan, Ohio, Washington). The clock typically starts from your last payment or last activity on the account.

Wage Garnishment

If a collector wins a court judgment, they may be able to garnish your wages — take a percentage of your paycheck directly from your employer. Federal law caps garnishment at 25% of disposable income or 30× the federal minimum wage, whichever is less. Several states set stricter limits, and some prohibit garnishment entirely for consumer debts.

Credit Reporting

In 2023, the three major credit bureaus (Equifax, Experian, TransUnion) agreed to stop reporting medical debt under $500 and to give patients 1 year (instead of 6 months) before reporting any medical debt. Several states (California, Colorado, Nevada, New York) have passed laws further restricting medical debt credit reporting or banning it outright.

Medical Debt Laws by State — At a Glance

State Statute of Limitations Wage Garnishment Cap Key Protection
Arizona6 years25%ARS 33-1131 homestead protection up to $150,000
California4 years25%SB 1061 (2023): medical debt cannot affect credit scores
Colorado6 years20%HB 23-1126: hospitals must offer charity care to those under 400% FPL
Connecticut6 years25%Medical Debt Act: income-based repayment schedules required
Florida5 yearsExemptHead-of-household exemption bars most wage garnishment
Georgia6 years25%O.C.G.A. §44-13-100 homestead exemption up to $21,500
Illinois5 years15%210 ILCS 88/10: charity care required for patients under 200% FPL
Indiana6 years25%IC 34-55-10-2 exemptions protect household goods and vehicles
Maryland3 years25%Medical Debt Protection Act: 3-year SOL, income-based discount floors
Massachusetts6 years15%Hospital free-care program required for patients under 400% FPL
Michigan6 years25%MCL 600.5807: 6-year SOL on written contracts
Minnesota6 years25%Debt Fairness Act (2023): broad medical debt protections
Missouri5 years25%Mo. Rev. Stat. §513.440 household goods exemption
Nevada6 years25%NRS 239B.030: medical debt shielded from credit reporting
New Jersey6 years10%N.J.S.A. 26:2H-18.64: charity care mandate for nonprofit hospitals
New York3 years10%FMDRA (2023): 3-year SOL; income-based hospital forgiveness
North Carolina3 years10%G.S. §1-52 3-year SOL; no wage garnishment for consumer debts
Ohio6 years25%ORC 2329.66 exemptions; nonprofit hospital charity care required
Oregon6 years25%ORS 441.096: financial assistance for patients under 200% FPL
Pennsylvania4 years10%Charity care required for patients under 200% FPL
Tennessee6 years25%T.C.A. 26-2-111 personal property exemptions
Texas4 yearsExemptTex. Prop. Code §42.001: wages fully exempt from garnishment
Virginia5 years25%Va. Code §8.01-246: 5-year SOL on written contracts
Washington6 years25%RCW 70.170.060: charity care required for nonprofit hospitals
Wisconsin6 years20%Wis. Stat. §815.18 exemptions protect primary vehicle and tools

This table reflects laws as of 2026. Laws change frequently — always verify current statutes before taking action.

State-by-State Deep Dive

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Select your state for the full breakdown — statute of limitations details, wage garnishment rules, credit reporting protections, notable state law, and step-by-step action guides.

Major State Law Changes in 2023–2026

New York (FMDRA 2023)

The Fair Medical Debt Reporting Act cut New York's statute of limitations on medical debt to 3 years and required hospitals to provide income-based charity care for patients earning under 400% FPL. Medical debt may no longer appear on NY credit reports. Full New York guide →

California (SB 1061, 2023)

California became the first state to bar medical debt from affecting credit scores entirely. Collectors may still sue on time-barred debts in some cases, but no medical debt may appear on a California credit report. Full California guide →

Colorado (HB 23-1126, 2023)

Colorado requires hospitals to proactively offer charity care to patients earning under 400% FPL and prohibits extraordinary collection actions (lawsuits, wage garnishment) while a charity care application is pending. Full Colorado guide →

Minnesota (Debt Fairness Act, 2023)

Minnesota's Debt Fairness Act enacted sweeping consumer protections including extended notice requirements before collection actions and income-based payment plans. Full Minnesota guide →

Nevada (SB 469, 2023)

Nevada now shields medical debt from credit reporting for most consumers and requires hospitals to proactively screen patients for charity care eligibility before initiating collections. Full Nevada guide →

Your Rights Under Federal Law (All States)

FDCPA (Fair Debt Collection Practices Act)

No matter what state you live in, the FDCPA protects you from harassment by third-party debt collectors. They cannot call before 8 AM or after 9 PM, cannot use abusive language, and must stop contacting you if you send a written cease-and-desist letter. Full FDCPA guide →

Right to Debt Validation

Within 30 days of a collector's first contact, you can send a debt validation letter demanding they prove the debt is yours and that the amount is correct. They must stop collection activity until they provide this validation. Free debt validation letter template →

CFPB Medical Debt Rule (2025)

The Consumer Financial Protection Bureau finalized a rule in 2025 banning medical debt from credit reports nationwide, effective for all new and existing medical debt. This rule is subject to potential regulatory changes — check our state guides for the latest status in your state.

No Surprises Act

Federal law bans surprise bills from out-of-network providers at in-network facilities for emergency care and certain non-emergency services. This applies in all 50 states. Full No Surprises Act guide →

Steps to Take If You're Facing Medical Debt Collection

  1. Check the statute of limitations in your state (table above). If the SOL has expired, you likely cannot be successfully sued.
  2. Request debt validation within 30 days of the collector's first contact. Use our free validation letter template.
  3. Apply for charity care at the hospital if you haven't already. Most nonprofit hospitals are legally required to provide charity care — and collection must pause while your application is reviewed.
  4. Negotiate a settlement. Medical debt collectors often accept 20–50 cents on the dollar for settled accounts. Get any agreement in writing before paying. Settlement guide →
  5. Know your wage garnishment rights in your state (table above). If you live in Texas, Florida (head-of-household), or North Carolina, your wages may be fully protected.
  6. Check your credit report for errors. If medical debt appears after state or federal law bars it, you can dispute it directly with the credit bureau. Medical debt credit report guide →