Legal Question in Credit and Debt Law in Pennsylvania
Collecting on a hospital bill
If a hospital bill is owed and the hospital gets a judgement to collect the bill, can they touch a person' IRA savings?
2 Answers from Attorneys
Re: Collecting on a hospital bill
42 Pa.C.S. � 8124. Exemption of particular property. * * *
(b) RETIREMENT FUNDS AND ACCOUNTS.-- * * *
(1) Except as provided in paragraph (2), the following money or other
property of the judgment debtor shall be exempt from attachment or
execution on a judgment:
(ix) Any retirement or annuity fund provided for under section
401(a), 403(a) and (b), 408, 408A, 409 or 530 of the Internal Revenue
Code of 1986 (Public Law 99-514, 26 U.S.C. � 401(a), 403(a) and (b),
408, 408A, 409 or 530), the appreciation thereon, the income
therefrom, the benefits or annuity payable thereunder and transfers
and rollovers between such funds. This subparagraph shall not apply
to:
(A) Amounts contributed by the debtor to the retirement or annuity
fund within one year before the debtor filed for bankruptcy. This
shall not include amounts directly rolled over from other funds
which are exempt from attachment under this subparagraph.
(B) Amounts contributed by the debtor to the retirement or annuity
fund in excess of $ 15,000 within a one-year period. This shall
not include amounts directly rolled over from other funds which are
exempt from attachment under this subparagraph.
(C) Amounts deemed to be fraudulent conveyances.
Re: Collecting on a hospital bill
If what you have is really an IRA then it is doubtful that the hospital or any creditor could reach the funds in the IRA. However, once the funds are withdrawn they can be subject to the hospital's judgment. If you want to feel really secure in this situation you should speak with an attorney. I or any other attorney that post here would be happy to help you for a fee.