Legal Question in Credit and Debt Law in Wisconsin

Re: I need help regarding a judgement for medical bills

You can try to negotiate a settlement or payment plan, but as the name suggests, it is voluntary. So if you owe the money and the creditor is NOT willing to agree to a settlement or payment plan, the creditor will be entitled to a judgment.

If the creditor gets judgment in a small claims action (usually a claim in the amount of $5,000 or less) you have to fill out a form disclosing your assets and income. In a large claim case, the creditor can hold a supplemental exam wherein he can compel you to attend and to give the same information.

The most common way to enforce a judgment is by a wage earner garnishment. Under the current Wisconsin State Statutes, the first 80% of the debtor�s disposable earnings are exempt from garnishment. All earnings may be exempt in some cases if your income is or would become less than the presumed poverty level for your household size and income.

A single garnishment lasts for 13 weeks and can be renewed. If there is more than one garnishment creditor, they take turns so there is only one garnishment at any one time.

Knowing how much a creditor can get if you are garnished gives you an idea how much you might be able to get the creditor to settle for in monthly payments. The creditor might take a little less knowing the creditor will also save the time and expense to garnish.

Bankruptcy Options for Garnishment Threat Due to Judgment for Medical Bills

I would recommend that you immediately consult with a bankruptcy lawyer. Even if you decide not to actually file, the retention of that type of lawyer often puts the debtor in a better negotiating position with creditors. If negotiations fail, a bankruptcy ends garnishments on any dischargeable debt. The tricky part, however, is getting your bankruptcy started prior to the commencement of the garnishments. Once they commence garnisheeing 25% of your net income (which will automatically continue for about 13 pay periods), you may literally become too poor to pay the fees required to file. These comments are not intended as legal advice for you, unless you subsequently retain me.