I think your answer would depend on the exact terms of the settlement/check. Was there any kind of release included or langauge about what the money had to be spent on? For example, did the letter or release say the money had to be sued to pay hospital bills and if not, ___ would happen? I would read the letter more carefully and see if there is any language like this in there. If there was no such language then it is likely that the payment was not conditional (didn't have to be used to pay the hospital bills) and was maybe only to help with the bills. If so, it is likely that nothing will happen except that your husband is still responsible for his outstanding medical bills. If those are not paid it is possible that his wages could be garnished and/or that they will go into collections and could affect his credit score, etc. Best of luck!
NOTE: This response is general in nature and should not be considered legal advice. No attorney-client relationship exists or is formed by this response.
Answered on Apr 08th, 2013 at 3:39 PM