If I live in one state but work in another, can my wages be garnished for an out of state hospital bill?

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If I live in one state but work in another, can my wages be garnished for an out of state hospital bill?

Asked on May 31, 2012 under Bankruptcy Law, Virginia

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You can be subject to a wage garnishment from the out of state hospital bill.  There is a general rule of law that a debt follows the debtor which means the creditor can still pursue the claim if you are out of the area.

Bankruptcy can stop a wage garnishment and that might be something to consider.  Eligibility to file Chapter 7 bankruptcy depends on income and other factors.  Chapter 7 is straight liquidation which eliminates certain types of debt.  If you are not eligible to file Chapter 7, you can file Chapter 13 bankruptcy; however, Chapter 13 requires a plan (budget) for repayment of creditors.

Also, if you do file bankruptcy, you will need to list all of your creditors; not just the hospital.


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