Expert: Regan Shinski - 11/13/2009

Question
i nearly died form stork in march and had no insurance can an attorneys office levy my bank acct for 11000 medical bill

Answer
I'm sorry for your medical issues.  I hope you are doing better :)  Potentially they can eventually get to your bank accounts so you need to be vigilant.  There are a lot of issues I would like to briefly address for you.

In order to get your bank account, they need to get a judgement.  This means they have to file a lawsuit, go to court, and win.  If you don't show up or get permission to delay the court case, they win by default judgement.  Even after a judgement is in place, most states have limitations on what can and cannot be taken in collecting it.  The worst case scenario is garnishment of wages, taking all your money without notice from bank accounts, placing liens on real estate, and even taking of personal property for sale at auction.  Again, most states have limitations on all these collection techniques, some states do not even allow some of them.

The key point is they cannot take money from any bank account unless a court ordered judgement is in place or you give them permission.

If you are on disability, SSI, SSDI, social security, or any other type of related fixed income these funds generally cannot be taken under any circumstance like this.  However, you MUST have a bank account where ONLY those funds are deposited.  Say you are on social security, if you even deposit one $10 rebate check or cash deposit, the bank can claim they cannot separate social security income from other funds.  Therefore, the attacking of the bank account will be allowed.  I advise all people on these types of income to get a separate account where only those funds are deposited and kept.

Certain states, California as an example, have stricter laws on medical collection issues.  Some have waiting periods, others limit the collection techniques or even mandate lower bills.  You should do a search and find out if your state has additional protections for you because of the underlying debt being due to medical issues.

If you qualify, bankruptcy can eliminate this and all other unsecured debts.  This is not recommended unless it is a last resort.  If they are not actively collecting or pursuing through the courts, you probably should not file.  However, I'm just throwing it out there as an option and to give you comfort that it is out there to eliminate the debt if all else fails.  You can consult an attorney - usually free consultations are provided - in advance to discuss your options.  Again, I only recommend as a last ditch or in extreme situations so don't let an attorney talk you into filing prematurely.

If you have large cash assets and are worried because of the amount of the debt, you can look into trusts and other accounting measures.  These can allow you to maintain complete control of the funds but limit creditors ability to get at the funds.  Proper legal or accounting advice would be needed for your situation.  Most would offer a free initial consultation on these matters.

Good luck, I hope this information helps.

Regan