racer72 said:
Sue the hospital and collection agency for any funds above what you owed.
Sorry, WRONG answer.
The CORRECT answer is... you need to check with the courthouse. Your failing to respond to the lawsuit allowed them to get a judgment against you. They (the judgment creditor) then used that judgment to garnish/levy/seize your bank account.
You will now have to dig into the problem and find out WHO the judgment creditor is. It is possible that the debt was sold to the current owner... and if that is the case, you paid the wrong person.
Needless to say, your failure to take care of this is now going to cost you a LOT of work in trying to find out which of the two parties was not supposed to get paid..... and then making a demand on them for reimbursement.