Legal Question in Credit and Debt Law in North Carolina

Generally, there is no wage garnishment in NC. However, there are exceptions. It depends on whether you were treated at a public hospital (UNC is part of the state system) or at a private hospital like Duke.

In cases of public hospitals, they may be able to intercept any state tax refunds. They may be able to garnish wages, but it may depend on your employer.

Unfortunately, the rule in NC is that married spouses are liable for each other's debts when it comes to things like "necessaries" one of which is medical care. So it does not matter if only you signed or not. Your wife is also liable and if you do not pay or resolve the debt, they can sue both you and her. Once the hospital gets a judgment, then you both will have to fill out exemptions to exempt certain property from being taken. It depends on the value and whether there is still a car note on it. You do not provide me enough information so I do not know if the car is exempt or not.

How much do you owe? Is your bill so large, along with your other debts, that it makes sense to file bankruptcy? If not, does the hospital have a patient advocate who can intercede with the billing office and work out a payment plan?

Failing that, start saving up your money. When you have approximately 50% of the debt or if you are sued, see what they will be willing to settle for and use what you have saved as a down payment. Creditors, including hospitals, will accept less than the whole thing.