Can Hospitals Garnish My Wages For Unpaid Medical Bills?

High medical bills are a major burden on families and individuals struggling to make payments. The cost of health care remains higher than many Americans can afford, and out-of-pocket fees are also on the rise. An unexpected trip to the emergency room can result in thousands of dollars not covered by insurance.

It is not always possible to make payments on time, if at all, which is why it is important to understand the consequences you may be faced with. If you have any experience with unpaid medical bills, you know that collection agencies are going to send letters and make calls. In addition to these annoyances, it will show up as a negative mark on your credit report and there is a potential to be faced with legal action. It is going to become extremely difficult to get loan approval if you want to purchase a home or a car in the future. Expensive debt may leave collection agencies with no other option than to seek wage garnishment to repay the amount owed.

Is Wage Garnishment A Common Result of Unpaid Medical Bills?

ADP, the largest payroll provider in the United States, reported that the Midwest has the highest rate of wage garnishments. An average of 5% of income earners making between $25,000 and $45,000 are facing wage garnishment. Two Missouri hospitals reportedly filed hundreds of legal suits seeking wage garnishment against patients that owe unpaid medical bills. It can make it difficult to stay current with other financial obligations when faced with these consequences.

Avoiding Wage Garnishment and Getting Debts Discharged

It is possible to have some medical debts discharged by filing bankruptcy. Debtors can use bankruptcy as a financial tool when finances are out of control. Individuals that qualify have an opportunity to stabilize their financial future with a fresh, new start. This topic, in addition to another videos covering advice on how to deal with unforeseen expenses, is featured on my YouTube channel.

People need to feel reassured that things can get better when facing negative changes in their financial status. It happens to most individuals at some point in their life, either due to medical bills, divorce, job loss, or other unforeseen events. Browse her YouTube channel to gain insight into your options and learn to make positive changes anytime there is an opportunity.