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About Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.

Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA University of Minnesota

You are here: Experts > Business > Corporate Law > Collections Law > Doctors Bill Judgement

Collections Law - Doctors Bill Judgement

Expert: Regan Shinski - 11/7/2009

Question
Back in September of 2008, my son had surgery for a staph infection that had gone really bad. Long story short, I received a doctors bill from the hospital for a "remainder" of payment not covered by my insurance company. I had been going back and forth with the insurance company on what part should have been covered by them. In the process, I received a notice from a collection agency in April/May of this year. We attempted to set up payments, but as we are all going through hard times, I was unable. In July, a payment was returned, due to several issues with my account. After that the collection company apparently went to court to get a judgement for garnishment of my bank account. The bill started out at $782. It has now jumped up to $1300. Today, unknowingly, they completely depleted my account, garnishing over $950. My questions are, (1)If the bank just received notification of the garnishment today, and they cut the check today, were they suppose to freeze the assests first before paying? (2)The money in the account was for car payment and groceries. I have two children and now have nothing to buy food with, let alone pay any bills with. Is it possible to file an exemption on the basis of hardship, seeing they put my account in the negative? (3)Are they suppose to leave a certain amount in the account, on the basis of living expenses? (4) When I was "summonsed" I personally wasn't summonsed, rather they summonsed my fiance, in hopes to get the paperwork to me. Are they able to do that? (5)I haven't received any paperwork notifying me of the garnishment. I just happened to call the bank. Are the creditors/banks required to notify you before the garnishment? (6) Is there anything that can be done, to receive part of the monies back, in order to be able to feed my children?

I am so devistated about this. It was never the fact that I didn't want to pay the bill, the matter was whether or not I could. I haven't been able to do so. When contacting the legal department of the law firm, all they would tell me, is that they are sorry for my hardship, but I can set up payments for the remainder of the balance in order to avoid the same thing happening again. How heartless can people really by

By the way, Im in the state of Oklahoma

Answer
Hello Kiea:

You are not going to like my answers. Sorry :( I'll answer them one-by-one by copy and paste:

(1)If the bank just received notification of the garnishment today, and they cut the check today, were they suppose to freeze the assets first before paying?

Not necessarily. Most likely no. Freezing the account would not have done you any good anyway because it's as if the funds aren't there. Nothing would have been released to you or to pay checks or bills hitting the account.

(2)The money in the account was for car payment and groceries. I have two children and now have nothing to buy food with, let alone pay any bills with. Is it possible to file an exemption on the basis of hardship, seeing they put my account in the negative?

No. Sadly in your case, this seems to be a legal collection maneuver. The only POSSIBLE exception is if the funds in the bank account were from social security, disability, retirement funds, or similar sources. If a single penny in the history of that account came from income or other unknown sources, it's legal.

(3)Are they suppose to leave a certain amount in the account, on the basis of living expenses?

No. They can take up to the amount to fully satisfy the judgement.

(4) When I was "summonsed" I personally wasn't summonsed, rather they summonsed my fiance, in hopes to get the paperwork to me. Are they able to do that?

This does not make a difference on what they did at the bank since the judgement was already in place. However, if done incorrectly, it can be a source of appeal on the judgement itself. Sadly, it appears Oklahoma law allows them to serve anyone over age 15 at your primary residence. There are other options, but you said they served an adult. That seems legal in this case. It has to be served by a sheriff, licensed process server, or other personal appointment or approved by the court. Was that the case for you? There is more information at this link on the Oklahoma process server laws:

http://www.serve-now.com/resources/process-serving-laws/Oklahoma

(5)I haven't received any paperwork notifying me of the garnishment. I just happened to call the bank. Are the creditors/banks required to notify you before the garnishment?

No. They people were notified in advance, they would move the funds. The law intends it to be a one-time surprise grab. They can do it again, but have to fill out same paperwork again

(6) Is there anything that can be done, to receive part of the monies back, in order to be able to feed my children?

Sadly, I don't think so.

They can do this again. If you switch accounts, there are methods available including hiring a private investigator to find the new account. In the short term, you should go to an all cash and money order lifestyle. Stop any direct deposits. Get all your funds out of bank accounts in your name.

If you enter into an agreement to pay the remaining balance make sure it is in writing. I would have a clause in there that they cannot do this again as long as you are current on the new payment arrangement. Only then would I put money back in a bank while there is still a balance.

Another option is bankruptcy. I don't recommend it unless you have a HUGE amount of debt. Research it thoroughly or write to me again before you file because there are certain things you need to think of and can do that attorneys do not think of.

Good luck. I'm truly worry this happened to you and I wish I had better options for you.

Regan
mbscompany@aim.com

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