Your One Stop Resource for Saving Money.
Information and Advice on Legal Action in Kentucky - The Bills.com Blog
Bills.com Blog > Other Questions > Legal Action in Kentucky
Information and Advice on Legal Action in Kentucky
Friday, Jun 27, 2008
Question: Hearing for unpaid medical bills. I wrote to the lawyer and told them we couldn't afford the bills after insurance and medicaid paid there was at least 7,000 left. I then wrote to the courts. what can they do to us. can they garnish his wages? he is the only one that works and it is part time and we have three small children! could we possibly get out of this? What is the worst that could happen in Kentucky law?
Answer: Unfortunately, Kentucky is not one of the better states for people who have fallen behind on paying their debts. Like most states, Kentucky does allow a debtor’s wages to be garnished by a creditor which has obtained a court judgment against the debtor. Kentucky law also allows liens to be placed on the property of judgment debtors and to levy bank accounts owned by a judgment debtor. For more information about the action that can be taken against debtors for the collection of judgments in Kentucky and other states, I encourage you to visit the Bills.com website at http://www.bills.com/collection-laws/, where you will find a brief outline of the laws in each state designed to protect consumers from excessive debt collection activity.In Kentucky, a judgment creditor can usually garnish 25% of the judgment debtor’s after tax wages, or the amount that the weekly wages exceed thirty time the federal minimum wage, whichever is less. For example, if your husband’s paycheck is $1000 (after taxes are paid but before voluntary deductions are taken out), the creditor could force your husband’s employer to send it $250 of his pay (25% of $1,000). However, if he brought home $180 per week, for example, his wages should only be garnished for $25.50, which is the amount that his wages exceed thirty times the minimum
wage, currently $154.50 per week. If his after tax income were less than thirty times the federal minimum wage each week, his wages should be exempt from garnishment. In addition to these general exemptions, many states provide additional exemptions if a garnishment will result in undue hardship for the debtor or his family.
If you own a home or other real property, a judgment creditor may be able to file a lien against that property, meaning that you would be forced to pay the debt if you choose to sell, refinance, or transfer the property. Property liens frequently have little effect on the day-to-day lives of consumers, as they usually only become an issue when the deed to the home is transferred to a new owner. Also, many consumers are able to pay outstanding liens from the proceeds of the sale or refinance, allowing them to resolve the lien without significant financial strain. However, for those consumers whose liens exceed the amount of equity in their home, either due to a decline in the property value or by borrowing too much money against their property, transferring a home with a lien can be difficult. In a worst case scenario, if you have a large amount of equity in your home, the creditor may be able to force the sale of your home; however, the forced sale of a home by an unsecured creditor (such as a medical provider) is extremely unlikely.
Finally,
If you own a home or other real property, a judgment creditor may be able to file a lien against that property, meaning that you would be forced to pay the debt if you choose to sell, refinance, or transfer the property. Property liens frequently have little effect on the day-to-day lives of consumers, as they usually only become an issue when the deed to the home is transferred to a new owner. Also, many consumers are able to pay outstanding liens from the proceeds of the sale or refinance, allowing them to resolve the lien without significant financial strain. However, for those consumers whose liens exceed the amount of equity in their home, either due to a decline in the property value or by borrowing too much money against their property, transferring a home with a lien can be difficult. In a worst case scenario, if you have a large amount of equity in your home, the creditor may be able to force the sale of your home; however, the forced sale of a home by an unsecured creditor (such as a medical provider) is extremely unlikely.
Finally,
a creditor with a judgment against you may be able to place a levy on any bank accounts you own. Once a bank account is frozen, the consumer is usually given an opportunity to file an “exemption request” with the court explaining why the funds in the account are exempt from levy. Examples of funds that may be exempt from levy include social security benefits, disability benefits, and pension proceeds.
I would strongly encourage you to consult with an attorney in your area regarding your specific financial situation and the possible implications of a judgment against you or your husband. As I mentioned previously, the creditor may be able to garnish his wages, levy his bank accounts, and/or place liens on his property. From your question, it sounds as though you financial situation is already difficult, so you need to consider options to resolve this debt, such as establishing a repayment plan or even filing for bankruptcy protection.
For more information available to those struggling with debt, I encourage you to visit the debt help section on Bills.com. If you would like to read more about bankruptcy, I also invite you to review the Bills.com bankruptcy page.
I wish you the best of luck in resolving these outstanding medical bills, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
I would strongly encourage you to consult with an attorney in your area regarding your specific financial situation and the possible implications of a judgment against you or your husband. As I mentioned previously, the creditor may be able to garnish his wages, levy his bank accounts, and/or place liens on his property. From your question, it sounds as though you financial situation is already difficult, so you need to consider options to resolve this debt, such as establishing a repayment plan or even filing for bankruptcy protection.
For more information available to those struggling with debt, I encourage you to visit the debt help section on Bills.com. If you would like to read more about bankruptcy, I also invite you to review the Bills.com bankruptcy page.
I wish you the best of luck in resolving these outstanding medical bills, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
Also, make sure to get a free financial health check-up with Bills IQ!
Submit questions/comments about this post:
Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
Information provided by Bills.com is for general informational purposes only and is not be
construed as legal, financial, bankruptcy, tax or other professional advice. Should you
require more detailed information or specific professional advice tailored to your situation you
should consult an attorney, financial planner or tax advisor.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
© 2006 - 2009Bills.com LLC. All Rights Reserved.