medical bills

by bob
(indiana)

can my tax check be garnished due to unpaid medical bills?

Comments for medical bills

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Jan 14, 2011
Can my tax refund be taken to pay medical bills?
by: Mary

Thanks for sharing your collection story with us.

The creditor to whom you owe the past due medical debt cannot take your tax refund before it is deposited into your account. However, assuming the creditor sues you for the money you owe in court and gets a judgment against you, it could get permission to seize money in your bank account and if your tax refund were in that account, the creditor could end up with some or all of that refund -- but not more than the amount of the judgment. Again however, the creditor must sue you and win the lawsuit before it can take any of the funds in your bank account.

Have you contacted the creditor to whom you owe the medical debt to try to work out a way for you to resolve the debt? For example, maybe the creditor would let you pay off the debt over time or maybe the creditor would be willing to reduce the total amount that you owe if you paid the reduced amount in a lump sum. Most creditors want to avoid the time and cost involved in going to court to get a judgment against a consumer for money owed and so they will usually be amenable to working out a payment arrangement of some sort. But the longer you wait to get in touch with a creditor about a past due debt, the less likely the creditor will be willing to work with you.

Please share what happens with your situation in the comments section for this question. We are very interested in hearing how this turns out for you, and your experience can help others who are struggling with debt collectors.

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