If I live in one state but work in another, can my wages be garnished for an out of state hospital bill?
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If I live in one state but work in another, can my wages be garnished for an out of state hospital bill?
Asked on May 31, 2012 under Bankruptcy Law, Virginia
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You can be subject to a wage garnishment from the out of state hospital bill. There is a general rule of law that a debt follows the debtor which means the creditor can still pursue the claim if you are out of the area.
Bankruptcy can stop a wage garnishment and that might be something to consider. Eligibility to file Chapter 7 bankruptcy depends on income and other factors. Chapter 7 is straight liquidation which eliminates certain types of debt. If you are not eligible to file Chapter 7, you can file Chapter 13 bankruptcy; however, Chapter 13 requires a plan (budget) for repayment of creditors.
Also, if you do file bankruptcy, you will need to list all of your creditors; not just the hospital.
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