• Facing Overwhelming Medical Bills?

    Two-thirds of people who file for bankruptcy cite medical issues as a key contributor to their financial problems.

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Medical bills are among the leading reasons individuals have to file for bankruptcy

Don’t Wait for these bills to turn into a lawsuit!

Medical debt continues to be one of the most common reasons why consumers file for bankruptcy protection.  Since unemployment continues to be a challenge for many Americans across the country there is a continued lack of financial support for medical insurance coverage.  The same is likely for those who are underemployed.  Even some with medical coverage find themselves struggling to keep up with necessary expenses when an unexpected medical emergency happens.

While many may find personal debt such as credit card bills and outstanding loans overwhelming, others may find medical debt alone to be a big problem for several reasons.  Debt collectors for medical collection agencies, as well as hospitals and other medical-related businesses have become more aggressive with their collection tactics.  Consumers are facing harassing phone calls, letters and being pursued in small claims court for payment on medical bills.  Once a judgment is entered the medical creditor can garnish your wages and/or bank account.

Bankruptcy is often seen as a last resort for resolving outstanding debt.  The same is true for medical debt, especially when patients are unable to agree on an affordable payment plan with creditors.  Having limited income makes making payments more difficult which is why bankruptcy is a good option to consider.  The filing process helps stop wage garnishment , prevents further legal action from lawsuits served and helps protect personal property from being seized to satisfy creditors.  If you feel overwhelmed with outstanding debt obligations, review your situation with an experienced Georgia bankruptcy attorney to learn if bankruptcy is the best option for you.

When you or a loved one is dealing with an illness or other health concerns, the last thing you want to worry about is how bills will be paid. This is when an experienced bankruptcy attorney may be able to help you find an appropriate solution to your debt situation.

If you are dealing with medical debt or find it is becoming increasing difficult to make necessary monthly payments because of medical bills, discuss your situation with a bankruptcy expert.

Recovering from a major illness or injury often means recovery financially from mounting medical debt . Even individuals with health insurance find that medical debt is a leading cause for considering bankruptcy.  Unfortunately, many debtors consider bankruptcy long after they have substantially whittled away at their limited resources and assets.


If you are still undergoing treatment or foresee continued medical expenses in the future, you may want to discuss the timing of a medical bankruptcy with your bankruptcy attorney. You may want to consider waiting to file your medical bankruptcy case until your medical treatment is completed. Or you may want to consider a Chapter 13 bankruptcy and convert to a Chapter 7 bankruptcy if ongoing medical expenses become overwhelming as debts incurred in Chapter 13 are dischargeable upon conversion to a Chapter 7 bankruptcy.


Filers of medical bankruptcies are always concerned about their continued relationship with their doctors and medical providers if they discharge their medical debts. Although medical providers (with the exception of hospital emergency room treatments) can refuse to treat you after their debt has been discharged in bankruptcy, most medical providers will not deny you continued treatment if you pay ongoing bills as they are incurred. After all, you are not the first patient to default on overwhelming medical debts in distressed circumstances and will not be the last for that medical provider. Plus most doctors realize that a debtor cannot re-file for bankruptcy for a period of time so those ongoing medical expenses are somewhat insulated from a future discharge. If all else fails, there are plenty of other doctors and medical providers that will treat you and will not know about a past bankruptcy. Lastly, there is no law preventing you from voluntarily re-paying an old medical debt after discharge if you have the means to do so. Call or email us today for a free consultation.

Wage Garnishment in Georgia

Once A Judgment Has Been Entered From A Lawsuit A Creditor Can Then Begin To Garnish Your Assets

Once a creditor has a judgment against you they can then garnish your income and assets. You will not be given notice before your pay check is garnished or bank account is seized so this type of creditor action can be devastating to your financial life.

Most creditors cannot garnish your wages without first suing you in court and getting a money judgment. While there are a few exceptions to this rule such as for student loans, taxes, and child support, in most cases the creditor must file a lawsuit and win.

In Georgia, a judgment creditor can garnish your wages up to 25% of your disposable income, or the income you receive after paying taxes, medical insurance, and 401k savings. The ability to pay necessary expenses such as housing, food, and clothing are often directly impacted.

If the creditor chooses not garnish your pay check they can use their garnishment to seize the funds you have in your financial accounts.  Creditors have third party services that allow them to find your bank accounts quickly after a judgment is entered. Once they serve your bank a copy of this judgment your account will be seized.

Fortunately, filing bankruptcy immediately stops garnishment and often discharges the amount owed pursuant to the judgment. Plus, any money that was taken from you through wage garnishment in the three months prior to filing bankruptcy can be recovered. So with either Chapter 7 bankruptcy or Chapter 13 bankruptcy, you can stop the garnishment in its tracks and get back the money that was taken from you.

In regards to your bank account being seized, once your bankruptcy is filed the bank will have to release the account (and your funds) back to you.

Once your bankruptcy case is filed the attorney and/or creditor that obtained the judgment against you will be notified immediately.  They are required to file a release of the garnishment and send this notice to your employer or bank to notify them to stop all actions.

Schedule a FREE Bankruptcy Consultation

Our firm offers video consultation from the convenience of your home or in-person appointments in one of our 10 office locations.

We invite you to contact us either online or by phone at 404-919-7296 to schedule a free confidential consultation to review your personal financial situation and what options we can provide to protect you from creditors. For additional information about bankruptcy please also check out our YouTube Channel which has up to date vlogs on issues related to personal bankruptcy.

© 2020 Saedi Law Group LLC. All Rights Reserved. LEGAL DISCLAIMER: We are a debt relief agency. We help people obtain relief from their creditors by filing for bankruptcy. Nothing posted on this website shall constitute legal advice. If you need legal advice please contact our office to schedule an appointment. No attorney client relationship exists until we have a written contract.
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