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Medical Debt

Are disability payments subject to garnishment?

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.

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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.”    

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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  

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