Stopping unjust wage garnishment?
April 20, 2010 11:19 PM Subscribe
My wages may be about to be unjustly garnished. What can I do?
Here's the situation as I understand it. As a contractor in the software industry, I have to change jobs pretty often -- sometimes twice a year. I almost always have to change health care providers too. COBRA, among other things, is a nightmare. A couple of years ago, I underwent a medical procedure that cost several thousand dollars, and because I was in the middle of changing jobs, the hospital got confused and billed my old health care provider, who refused the charges. A few months ago, my wife and I were sued for the hospital expenses. Because of a combination of foolishness, laziness, and a basic misunderstanding of the situation, we failed to be at the hearing, and now my wages may be about to be garnished. We've received a "Notice of Garnishment and of Your Rights", and it says that a Writ of Garnishment "has been, or will be" served on my employer.
It's not as if we've been sitting still. My wife has talked to the insurance company who should have been billed in the first place, the hospital, and the hospital's collection agency several times, and all of them admitted that it was a mistake, and said they would send each other the proper paperwork to settle things right away. This never happened. We have since moved house, and we've misplaced my wife's notes in the process.
Without a time machine, what can I do? As far as I know, we're completely in the right -- it was the hospital's mistake. Should I appeal? How much would that cost? Do I need a good lawyer at this point? How much would that cost, and where would I find one? Should I tough it out and call up the hospital and/or their law firm myself?
Basically, we need a number of strategies we can try here, and some cost/benefit analysis. Thank you.
Here's the situation as I understand it. As a contractor in the software industry, I have to change jobs pretty often -- sometimes twice a year. I almost always have to change health care providers too. COBRA, among other things, is a nightmare. A couple of years ago, I underwent a medical procedure that cost several thousand dollars, and because I was in the middle of changing jobs, the hospital got confused and billed my old health care provider, who refused the charges. A few months ago, my wife and I were sued for the hospital expenses. Because of a combination of foolishness, laziness, and a basic misunderstanding of the situation, we failed to be at the hearing, and now my wages may be about to be garnished. We've received a "Notice of Garnishment and of Your Rights", and it says that a Writ of Garnishment "has been, or will be" served on my employer.
It's not as if we've been sitting still. My wife has talked to the insurance company who should have been billed in the first place, the hospital, and the hospital's collection agency several times, and all of them admitted that it was a mistake, and said they would send each other the proper paperwork to settle things right away. This never happened. We have since moved house, and we've misplaced my wife's notes in the process.
Without a time machine, what can I do? As far as I know, we're completely in the right -- it was the hospital's mistake. Should I appeal? How much would that cost? Do I need a good lawyer at this point? How much would that cost, and where would I find one? Should I tough it out and call up the hospital and/or their law firm myself?
Basically, we need a number of strategies we can try here, and some cost/benefit analysis. Thank you.
In general, I believe you are responsible for the bill getting paid, not the hospital. So, while it was a mixup on the hospital's part to send the bill to the wrong co, it's on you to make sure the hospital got paid. Consider the wage garnishing simply the hospital getting their payment.
You in turn can focus on getting paid from your insurance company. The hospital may help you with this. It of course helps to have as much paperwork together as possible - proof of coverage (if you don't have this, get it from the insurance co), documentation of the procedure (get this from the hospital). Then work both ends - ask the insurance co to reimburse you for the service, and in the meantime sic the hospital on them (who would I am sure love to get one big payment for everything from your insurance rather than a monthly wage garnishing).
Document (and save) everything.
posted by zippy at 11:50 PM on April 20, 2010
You in turn can focus on getting paid from your insurance company. The hospital may help you with this. It of course helps to have as much paperwork together as possible - proof of coverage (if you don't have this, get it from the insurance co), documentation of the procedure (get this from the hospital). Then work both ends - ask the insurance co to reimburse you for the service, and in the meantime sic the hospital on them (who would I am sure love to get one big payment for everything from your insurance rather than a monthly wage garnishing).
Document (and save) everything.
posted by zippy at 11:50 PM on April 20, 2010
I'm not a lawyer, and I'm not your lawyer.
You need to get a lawyer right now, or it will only get worse.
This is far beyond calling up the hospital to negotiate anymore. They don't give a shit, because they already took your ass to court... and won! They got a default judgment, and now they're going to get paid... straight out of your paycheck!
Let's get real here, and assume the hospital wants their money. You've got a default judgment against you, and a notice that your wages will be garnished. They don't care if they sent forms to the wrong person, and they're not going to care unless you get a lawyer.
There's a possibility that you might be able to get the court to vacate the judgment, but you'll need a lawyer to figure out how to best present your evidence. There's a possibility that maybe your income is exempt from judgment, however the burden is upon you to prove it.
You seriously need to act now, or else you can kiss that several thousand dollars (plus the hospital's court/attorney fees) goodbye.
But you know what? You're lucky. Consumer rights lawyers often take cases on contingency and for low costs. They will often offer free or low-cost consultations. You can find one here.
posted by autoclavicle at 3:22 AM on April 21, 2010 [2 favorites]
You need to get a lawyer right now, or it will only get worse.
This is far beyond calling up the hospital to negotiate anymore. They don't give a shit, because they already took your ass to court... and won! They got a default judgment, and now they're going to get paid... straight out of your paycheck!
Let's get real here, and assume the hospital wants their money. You've got a default judgment against you, and a notice that your wages will be garnished. They don't care if they sent forms to the wrong person, and they're not going to care unless you get a lawyer.
There's a possibility that you might be able to get the court to vacate the judgment, but you'll need a lawyer to figure out how to best present your evidence. There's a possibility that maybe your income is exempt from judgment, however the burden is upon you to prove it.
You seriously need to act now, or else you can kiss that several thousand dollars (plus the hospital's court/attorney fees) goodbye.
But you know what? You're lucky. Consumer rights lawyers often take cases on contingency and for low costs. They will often offer free or low-cost consultations. You can find one here.
posted by autoclavicle at 3:22 AM on April 21, 2010 [2 favorites]
nthing lawyer.
The whole "We just need the paperwork from X" where X is the other party, they're basically just jerking you around. In a lot of cases once they hear "lawyer" they get serious about it.
posted by delmoi at 3:55 AM on April 21, 2010
The whole "We just need the paperwork from X" where X is the other party, they're basically just jerking you around. In a lot of cases once they hear "lawyer" they get serious about it.
posted by delmoi at 3:55 AM on April 21, 2010
There is virtually no such thing as wages being "unjustly garnished". A garnishment is a proceeding to collect on a judgment after it has been entered, after you have had a chance to be heard and to defend against the claim.
Your recitation shows that you did have that chance and did not take it. "Because of a combination of foolishness, laziness, and a basic misunderstanding of the situation, we failed to be at the hearing."
But you don't seem to want to recognize that fact. "As far as I know, we're completely in the right -- it was the hospital's mistake." At one point, maybe yes. But not once you failed to appear.
There are procedures available for "relief from judgment" when the circumstances are right. Only a lawyer can tell you whether that is available to you now, or whether the nearest bankruptcy court is your better option. Good luck.
posted by yclipse at 4:52 AM on April 21, 2010 [10 favorites]
Your recitation shows that you did have that chance and did not take it. "Because of a combination of foolishness, laziness, and a basic misunderstanding of the situation, we failed to be at the hearing."
But you don't seem to want to recognize that fact. "As far as I know, we're completely in the right -- it was the hospital's mistake." At one point, maybe yes. But not once you failed to appear.
There are procedures available for "relief from judgment" when the circumstances are right. Only a lawyer can tell you whether that is available to you now, or whether the nearest bankruptcy court is your better option. Good luck.
posted by yclipse at 4:52 AM on April 21, 2010 [10 favorites]
This is why we need health insurance reform. But I digress. Work on getting the bill paid. Fine the notes, or make the same calls all over again. Document the crap out of it. Once it's paid, they don't garnish.
posted by theora55 at 9:22 AM on April 21, 2010
posted by theora55 at 9:22 AM on April 21, 2010
This thread is closed to new comments.
Failure to appear is never good, but it might be possible to reopen the case, if material facts were over looked. Every state is different though so you need to talk to someone fast.
The biggest thing you have on your side is that the hospital doesn't want to garnish your wages, they want the money. If they have sold the debt to a collection agency the hospital is out of the picture, but the collection agency just wants the money too. Money has value over time, and if they can get it quicker they will. But you need a lawyer asap.
posted by Some1 at 11:46 PM on April 20, 2010