Looking for advice (from those who have been there) about credit cards and collections?

Question

O.K. So, I'm over $14,000 in debt to a major credit card company. I always had good credit and payed my bills up until January of this year when I ran into horrible luck with my health and lost my job. No one will hire me because of my health and I'm being told I need to apply for disability, but I hate the thought of that.....so please don't say get a job.........I'm trying anything and everything and it's not working. I'm flat broke, borrowing money from a close friend to survive on. Bankruptcy and credit counseling are not options. I have zero income. My credit card company has written off my debt as a bad debt even though I was sending them $25 payments (it was something) up until May of this year. I guess that doesn't count for anything. The calls were non stop, but have now creased. I believe their collectiond dept or a 3rd party sent me something via UPS...no name..only an address but I refused it. I'm trying to avoid it, hoping it will just go away..prob not. Any advice? Thanks

Answer 1

If you genuinely cannot work because of your health, then apply for disability. You need to make sure that your basic living and medical expenses are covered. Even really close friends will draw the line when it comes to loaning money.

As for the debt, I agree with a couple of the posters above - the credit card companies will not give up easily on $14,000. Bankruptcy might be your only option at this point.

Answer 2

Do you own a home? A car?

Why is bankruptcy not an option?

I can pretty much assure you that for $14k in debt, they will sue you. It's only a matter of time before they get you served. Keep a close eye on your local court. It's very possible they served you through an "alternative" method and you have a court date. If you don't show up you will get a default judgement.

So it's just a matter of time.

Obviously paying the debt is out of the question. So you really only have two options.

1) If you don't have a home, and very little property (and no income) you are "judgement proof". If they win in court there is no way they can collect. It will kill your credit for the next 7 years, and if you ever do find a job they can garnish you in the future.

2) With a bankrutcy, you should be able to get a chapter 7. With no income you can qualify for it easily. A bankruptcy will kill you credit for several years also, but it's already dead now, so what differance does that make? If paying the fees is a problem, the law does provide for relief in this area, by waiving the counseling fees and a large portion of the legal/filing fees.

Credit counseling is obviously out because you don't have any income to pay the debt off, so what's the point? (I love these jokers here who recommended that to you....they can't read).

Good luck. I wish I had better suggestions for you.

Answer 3

You may not like the thought of disability but you need to get some income coming in somehow.

If your debt has already gone to collections, your credit score has already been hit. What you need to do is get some income to live off of and be able to use to set up a payment plan with whoever bought your debt. Once you do that, get them to agree (in writing) that they'll take the collection off your credit report once you've paid it.

But if you have zero income, you really need to concentrate on that more than the credit card debt because that's already hit your credit score. And no, it's not going to go away but you can always deal with the collectors once you've got at least something to pay.

Answer 4

It might go away, say if a debt were a couple of thousand dollars, but $14k is a LOT and worth them suing you for.
Banks & lenders will do something called a CHARGE OFF,which basically eliminates the debt from a collection standpoint. But again, will they do that on a $14k debt, probably not. Sometimes they will continue to sell off your account to another collection agency.. then another.. and another. In essence, if you are finding yourself in severe financial duress... you might consider speaking with a Bankruptcy attorney about your options in filing a chapter 7 or 13. Some states have a Statute of Limitation on how long they can attempt to collect on a past-due debt but you'd need to speak with an attorney regarding that (some have websites with all sorts of free information regarding credit law for your State). Sending them $25 a month is not going to call off the wolves and it won't stop them from suing you and getting a judgment (if that's allowed in your State). However you have to keep in mind, you can't get blood from a turnip .. so if you have nothing to take, what are they going to get ? Many states do not allow a creditor to garnish your wages on a judgment in regards to non-secured debt like credit cards...(Arizona is one of them, there are others). Collection agencies are very aggressive and can very scary and intimidating... and they do have the right to continue to try and collect from you as long as you keep sending them any money at all. By the way, a lot of BK attorneys will give you an initial consultation free of charge.
Hope that helps ... (been there, done that, it's stressful).

Answer 5

Consumers Credit Card Counseling has helped many people for years. Check with your local phone book to see if there is one in your area.
Also I am dealing with being disabled from an accident form work and am fighting the state about it. TAKE the disability so at least you do have some type of income.

Answer 6

Get disability and for God sakes don't worry about a billion dollar company getting their money.Hang up on all collectors like you said your broke. Take care of your self and let the debt go. You can never repay it and if you start to collect disability never ever use that to pay a credit card debt.Let it go it's not your fault.

Answer 7

The Secrets of Million Dollar Home Based Business Opportunities
By: Daegan Smith
Maybe you should take the disablity...then use some of that money to start a home/internet business that will start creating some income. Look on ebay for internet businesses...

Answer 8

the calls and dunning won't go away if you ignore them, and even if they charge them off by law you still owe them. If you need to go on disability to survive because you have medical needs then go hire an attorney (they don't ask for money up front, they take their fee out of your award). The attorney will fight for you for medicare and prescription drugs.In the meantime get on welfare and apply for food stamps. If you can't stall rental payments move in with a relative for a while.