The only income I have now is Social Security Disability, and I am unable to work. Can credit collections sue?

Question

I owe a good bit on credit cards I had before I was disabled. I am now unable to pay them. My social security barely pays the bills. I am being threatened and they are calling my parents, whom I haven't lived with in 4 years. Can I be sued and my check taken away for this? I can't afford bankruptcy.

Answer 1

They can not garnish your SSI or disbility income. But they can go after your bank account if it's deposited there, so be carefull where you place it.

If you own property they will try to seize it. That depends on the state you live in, as some states restrict what can be attached. But they can go after your care, or place a lien on your home.

What they will do depends on how much you owe them If it's not that great (under $1000) I would expect them to just drop the case because you are considered "judgement proof". But for more than this, they may sue you so anyway. Once they have the judgement they can continue to collect for a very long time. Without it, they are limited to the Statute of Limitations, which generally is about 6 years. I don't expect them to walk away from a $10,000 debt.

You can stop the collection agents from harrassing you by sending them a cease and desist letter (see the links below for samples). Once they receive this, they must stop all communications with you. If they don't, you can sue them in small claims court for violation of the Fair Debt Collections Act.

Email me if you need more info. Good luck.

Answer 2

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Answer 3

Yes you can be sued and they can get judgements against you. Collecting with be the tough part. I'm not sure if they can attach your ssi check or not. It may vary on the state you are in (here in TX, the answer would be "no.")

You can't afford not to file a bankruptcy. Ask your folks for the money.

In the meantime become a master of the FTC rules for collection agents.

Among them - They cannot call you more than once a day. If you notify them in writing to ONLY contact you by mail, they can't call at all (note this ticks them off so they sell your debt to another agency that will need a new letter to stop calling).

I always send the letter receipt requested because the little bastards will try to tell you they don't have it.

You can also tell them point blank you are now permanently disabled and its just never going to happen. That may actually work with some. They do understand the blood out of a turnip scenario.

When they start to try to negotiate or bully you, just hang up.

Also you need to know the statute of limitations in your states. It turns out there is a time limit they have to collect. After that, it is voluntary on your part, but they aren't supposed to bother you anymore. It WILL stay on your report for 7 years, but they can't do anything else.

Keep good records because there are companies that buy old debt and will try again, years down the road. Don't even acknowledge an old debt because if you do, they will reage it and it will look newer than it is.

In other words, these guys are scums but there are limits to what they can do, regardless of what they threaten.

Oh..and if they tell your folks why they are calling, they are breaking the law. Keep record of all this and notify them point blank you'll file a claim with the FTC.

Answer 4

If you used the card and made purchases, they do not care whether you have a Government check to pay it off or a regular job for income. If the debt is not paid they will turn it over to a Collections agency and the harassment will start. You should contact a Banking or Financial Company that is reputable and get on Credit Counseling as well as Debt Relief and negotiation to pay the debt. Watch for the Companies that can promise pennies on the dollar to pay it off--they are rip offs. Contact the Credit Card Companies and negotiate a payment plan for smaller payments and possible interest deferment. As long as you make an effort it is possible to deal w/ this. The last thing to do is CUT UP THE CARDS and do not make further debt. Garnishment is still alive and well so make an effort to work out something not just let it go. Be responsible w/ this issue and any future debt.

Answer 5

You can be sued if it goes as far as court the judge wouldn't make you pay back more than £10 a month in total, write down a list of all your outgoings and the income you receive, you will have to pay something but it could be as little as £1 a week.
Your parents should tell the callers you do not live there and have not for many years, the companies will eventually leave them alone once they realise they cannot intimidate your parents into paying your debts.

If you are in the U.K, the citizens advice bureau are brilliant at sorting out problems like this and can usually get a low payback per month they can also stop interest being added to the amount owed.

Answer 6

The legal position on debts is different in every country and you have not mentioned where you live.
Most countries have citizen's bureau and these should be your first port of call. They are staffed with retired lawyers etc. who want to help the community and they are good in their job.

Ask them the pros and cons of the various options open to you including bankruptcy and bailiffs and decide what is best. If you need to, you can go there again. If I were in you situation I would not agree to paying more than half the debt at more than £5per week, but it is up to you.

Do not worry, you have the upper hand in this situation. The banks know you can always declare your self bankrupt and they will get nothing. I wish you all the best

Answer 7

They can sue you, but they can't garnish SSDI. Once they get the judgement, they will attempt to take the money from your bank account. As long as all the funds in the account are from SSDI, and you can prove it, your money should be safe. DON"T EVER PUT MONEY FROM OTHER SOURCES IN THAT ACCOUNT!

The reason they will go ahead and sue you is that they are hoping someday you will have other resources or income, so they want to have a judgement against you so that they have the hope of getting their money in the future. They can put a lein against any property you own, such as a house.

Why are they calling your parents? Are you refusing to speak to them at your house? Can they get in touch with you? If not, they can contact others to try to find you. Your best bet is to send them a "cease and desist" letter. Do a google search to find one. Tell them they can only contact you via mail.

If your income is low enough, you can have the bankrupcy filing fees waived. You can file pro se (without a lawyer), but do a lot of research before you do this. Get the NOLO.com book on bankruptcy. With just SSDI as income, you should have no problem qualifying for a chapter 7 as long as you don't have a lot of assets.

Answer 8

Studly give some good advice, however, the only way they can hit your bank account is if it contains "co-mingled" funds. Which means that if your grandma or someone give you a $25.00 birthday check or any other type of check or cash and you deposit it in the same account your SSDI goes into then they can take the whole thing. i would suggest keeping separate accounts, one for your SSDI check and one for anything else you may get. If the only thing in your account is you SSDI then they cant touch it, and if they do, you must prove to them that is exempt funds.

They still can sue you if you have any real property such as equity in you home or an auto, etc.

Mostly what they will do is just let it go. you could also consult an Attorney about filing Bankruptcy.

Good Luck!!

Answer 9

First of all, you CAN afford bankruptcy....then question is do you qualify....if you have been receiving ONLY Disability for the last six months and that yearly income is below your state's median income.....you qualify....

However, before you can file anything, you must complete a required financial education class approved by the Trustee...Call them and ask for a list of companies that offer it....

Second, why do your credit card companies have your parent info....did they co-sign, did you add them to your credit cards?

Finally, if the companies pursue, they can garnish your bank account...it's a one time drain of the monies in there at the time.

If you decide to pursue bankruptcy.....you can file pro se, the paperwork IS intimdating, but very straightforward.....don't hesitate.

Answer 10

The only thing that the credit card companies can do is file bad credit reports against you. They cannot sue you, or take your check. or garnish part of it. The only thing they can do is keep sending you notices. If they are calling you or your parents tell them to stop then notify the phone company that they are harassing you. Even though these are legitimate debts these companys are not allowed to harass you over them...

Sorry bout yer bad luck!