Losing a loved one is emotionally devastating–and when that loss comes with tens or even hundreds of thousands of dollars in unpaid medical bills, the burden can feel unbearable. At Fund Capital America, we help plaintiffs, their families, and their legal teams understand and navigate the complex financial aftermath of a personal injury or wrongful death case– especially when medical liens and outstanding healthcare bills are involved.
If you’re in California and you’ve recently lost a spouse with substantial medical debt, you’re not alone== and you’re likely asking: Am I responsible for paying this? Can debt collectors for after our home? The answer is nuanced and depends on several large and financial factors unique to California law. Let’s break it down.
When someone passes away, their debts—including medical bills—don’t simply vanish. Instead, these debts typically become the responsibility of the deceased’s estate. If the estate has assets, those may be used to pay creditors before any inheritance is distributed. But what happens if there are few or no assets—or if you’re married to the deceased?
California is one of nine community property states in the U.S. This means that most debts incurred during the marriage—regardless of which spouse signed for them—are considered jointly owed by both spouses. That includes medical expenses.
So, yes: If your spouse passed away with unpaid hospital or doctor bills, you may be legally responsible for that debt, even if you didn’t sign anything.
However, there are some important exceptions and protections.
One of the most pressing concerns for grieving families is whether debt collectors can seize their home. Thankfully, California law offers a robust homestead exemption, which protects a certain amount of equity in your primary residence from creditors, including those pursuing medical debt.
As of 2021, California’s homestead exemption ranges from $300,000 to $600,000, depending on your county’s median home price. This protection can prevent forced home sales for debt collection in many cases, but you should consult with a qualified attorney to fully understand how the exemption applies to your specific situation.
In cases where your loved one was involved in an accident and passed away due to someone else’s negligence, hospitals and healthcare providers may file medical liens against any future settlement or judgment in a wrongful death or personal injury lawsuit.
A medical lien gives a hospital or provider a legal claim to a portion of any compensation received from a lawsuit. In California, medical liens must follow strict guidelines to be enforceable, and injured parties (or their estates) have the right to negotiate these liens before payout.
Our team at Fund Capital America works closely with personal injury attorneys, law firms, and victims’ families to review, negotiate, and manage medical liens efficiently and legally. We:
By minimizing medical lien obligations, we help surviving spouses and families retain more of their rightful settlement without falling deeper into debt.
Under the California Rosenthal Fair Debt Collection Practices Act, debt collectors must treat you fairly and cannot harass or threaten you. If you’re being contacted about your spouse’s medical debt, know that:
If the collector violates your rights, you may be able to file a complaint or seek damages.
If you are overwhelmed by medical bills after your spouse’s passing, here are a few steps to consider:
Fund Capital America offers non-recourse pre-settlement funding to families awaiting resolution in wrongful death lawsuits. This means you receive cash now and only repay it if your case wins or settles—there’s no risk of added financial pressure during an already difficult time.
With medical debt being the #1 cause of bankruptcy in the U.S., it’s vital to understand your options. A sudden illness or tragic accident should not force you to lose your home, damage your credit, or live in fear of collections.
Since 2006, Fund Capital America (FCA) has been a trusted leader in pre-settlement funding, providing cash advance loans to plaintiffs in personal injury and accident cases. Over the years, FCA has proudly served thousands of law firms and tens of thousands of clients, helping them navigate the financial challenges of litigation. While our core service is pre-settlement funding, we also offer a comprehensive range of services to support law firms and their clients from the beginning of the case to the final settlement check distribution.
In addition to pre-settlement funding, FCA provides a broad array of services designed to alleviate the financial and administrative burdens on injury victims, law firms, and medical professionals. Our services include:
Here's how it works:
Fill out our application form: It takes just 5 minutes to provide the necessary details about your case.
Get prequalified: Our team will review your application and get back to you swiftly, often within hours.
Need assistance? Call us at the number provided for immediate support from our knowledgeable staff.
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