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Medical Debt

Are disability payments subject to garnishment?

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In most states, State paid disability, private disability insurance payments and most retired disability payments are exempt from garnishment. However, there are exceptions when you owe back child support or certain taxes. Check with your state attorney general’s consumer protection division to be sure about the rules in your state. There may be instances where discussing your situation over a ...

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My medical provider failed to bill my insurance company, am I still responsible for the debt?


Some common myths: 1. Medical providers are required to bill your insurance company. 2. Insurance companies have to pay your medical bills. The truth is, you are responsible for paying your medical debts. Now, if you happen to have medical insurance, AND the insurance company receives the medical bill in accordance with its stated requirements AND the medical service is ...

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Do Medical Debts fall under the Fair Debt Collection Practices Act?


Yes! Medical Debts and bills fall under the Fair Debt Collection Practices Act because medical debt meets the definition of a “debt” under rule 803(5): This rule defines “debt” as, “a consumer’s obligation to pay money arising out of a transaction in which the money, property, insurance, or services are primarily for personal, family, or household purposes.”     There ...

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Do medical debts expire?

Medical debts are generally considered close-ended credit contracts with a definite pay-off time limit and statute of limitation. Unless you have a separate agreement, medical debts are usually payable at the time services are rendered or, in some cases within 30 days. Check your State’s SoL here… Statutes of Limitation by State   There may be instances where discussing your ...

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