Medical Garnishment/SSDI

[JessiesGirl]

What is the name of your state? Arizona

Hi. I recently (December 2006) won a medmal lawsuit. I am now unemployable due to the injury that precipitated the suit, and aside from the upfront award, will not receive any money until January 2009, and that will be a monthly amount, supposed to be enough to live on, that's all. The money I received upfront in January 2007 has been spent mostly already. My lawyers paid the bills I sent them over the course of the suit, but I have several more med bills after that date that I incurred. My health insurance was in effect except from December 1, 2006 to February 11, 2007, when my stbx husband got us cancelled for non-payment.

Anyway, during that time period with no insurance, I racked up a couple of hospital stays and several doctor/lab visits. I didn't know I didn't have insurance until mid-January during a hospital visit. I have no way to pay those bills now, or even make payments. If I did, I'd pay them already. Owing the bills is not in question. Having the means to pay them is.

What my questions are, can these medical providers garnish my monthly award? I won't see the monthly award until January 2009, so that's a long way off. I am applying for Soc Sec. Disability, and expect to get it. Can providers garnish Disability payments? Should I just declare bankruptcy? I also will not receive any funds from the stbx for child support or alimony (I realize this last sentence is not applicable for debts but wanted to be clear that I do not have a way to support myself at this time). As I type I realize I am in a scary situation with no funds for the next 1.5 years. My stbx left me in March 2006, and I got a boyfriend in October 2006 that is helping with living expenses, thankfully.

Thank you in advance.

[draygnmage]

Social Security, Disability, Child Support, Pensions, etc are all exempt from garnishment, so relax.

[BL]

Can Social Security benefits be garnished to pay a debt? Answer
Section 207 of the Social Security Act (42 U.S.C. 407) protects Social Security benefits from assignment, levy, or garnishment. However, the law provides five exceptions:
Section 459 of the Act (42 U.S.C. 659) allows Social Security benefits to be garnished to enforce child support and/or alimony obligations;
Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c)) allows benefits to be garnished to collect unpaid Federal taxes;
Section 3402 (P) of the Internal Revenue Code allows beneficiaries to elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service to satisfy their Federal income tax liability for the current year;
The Debt Collection Act of 1996 (Public Law 104-134) allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency: and
The Tax Payer Relief Act of 1997 (Public Law 105-34) authorizes the Internal Revenue Service to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid.
The Social Security Administration's responsibility for protecting benefits against legal process and assignment usually ends when the beneficiary is paid. However, once paid, benefits continue to be protected under section 207 of the Act only as long as they are identifiable as Social Security benefits. This applies to money in a bank account where the only payments into the account are from direct deposit of Social Security benefits.
NOTE: Supplemental Security Income payments cannot be levied or garnished.