i have been given credit while on bebefits and the interest is very high, do i legally have to pay it all back? the collection agency have stopped collecting payments and now sending me threatening letters. what do i do
2006-09-28 04:42:36 · 11 answers · asked by caitlyn_angel1 1 in Business & Finance ➔ Credit
yeah, you have to pay it back. social security money is just like regular money, so they'll take it. if you couldn't pay for it or thought you didn't have to because you get ss benefits, you were in the wrong and they can take legal actions against you.
2006-09-28 06:41:41 · answer #1 · answered by bella_4624_19 4 · 0⤊ 0⤋
Pull up your state statutes and do a search for collections while on social security. You can also go into your state court system and pull up the documents that you fill out like an exemption form and it will tell you what type of funds a collection agency can collect on and I believe social security earnings is one they cannot touch. I guess the giving credit part is up to the credit issuing company. Your state statutes lists and breaks down all of the laws and procedures on a particular subject.
2006-09-28 04:50:54 · answer #2 · answered by ElegantSweetie 2 · 0⤊ 0⤋
They can chase you until you tell them to stop. They cannot garnish your benefits and if your benefits is the only income you have, you're probably judgment proof. The Anti-Assignment clause of the Social Security Act, 42 U.S.C. §407(a), states that a person's entitlement to Social Security payments shall not "be subject to execution, levy, garnishment, or other legal process."
You should probably contact a credit counseling agency in your area.
2006-09-29 13:37:31 · answer #3 · answered by althegrrl 3 · 0⤊ 0⤋
Anyone who has a verifiable source of income is elligible to recieve credit, subject to whatever credit rating criteria the company issuing credit uses. You may consider contacting your local Consumer Credit Counseling agency. They will be able to advise you of possible workout opportunities with your creditors. Other than that you can try to work out something with the creditor themselves, or if all else fails, you may want to consider a chapter 7 bankruptcy which will eliminate the debt in its entirerty. Good luck..BB
2006-09-28 04:57:37 · answer #4 · answered by billyboy 1 · 0⤊ 0⤋
Um, WHY WOULDNT YOU HAVE TO PAY IT BACK? Just becuase your income comes for SS and not a job, has nothing to do with you owing it.
And what do you mean they've "stopped collecting payments"? If they are sending you letters that means they want your money. So send them what you can eveyr month and keep receipts, an dhopefully that will be enough tokeep you out of court.
2006-09-28 04:45:56 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Yes, it's legal to loan money to people on SS.
They will most likely file a lawsuit and sue you. But here is the good part. The can not garnish your SS Income, they can not garnish your bank accounts if that is your only income. In many states they can't take certain property.
In other words, they could sue you but you are "judgement proof". They will not be able to collect.
So what you can do is contact the collection agent, point out all of these things, and see if they will give you a payment plan that you can handle. Freeze the interest and late fees, and even lower the balance a bit.
The alternative is they collect nothing.
2006-09-28 12:56:27 · answer #6 · answered by Anonymous · 0⤊ 4⤋
Sure it's legal to give someone credit while collectiing benefits as long as the debt does not overweigh tthe income, why not? And as with anyone, yes you have to pay it back! You must realize you're hurting your credit, they are transferring your account to collecttion agenciies.
2006-09-28 04:48:45 · answer #7 · answered by Anonymous · 1⤊ 0⤋
I don't know why they even gave you credit if you're on SSI or SSDI. No offense. But yes, if they did, and you used it, you have to pay it back. Duh.
Yes, they can take your money too. They don't care how you have your income. You can be sued. It's happened to people before.
2006-09-28 04:51:38 · answer #8 · answered by *babydoll* 6 · 0⤊ 0⤋
Why wouldn't you have to pay it back? Many people are on SSI and pay their bills just fine. If you didn't want to pay it back you shouldn't have applied for it. Certain government income can be garnished. Don't think you can just get away with it.
2006-09-28 05:38:23 · answer #9 · answered by NETTA M 3 · 0⤊ 0⤋
Yes, it is legal for them to give you credit because you wanted it. And you have to pay back. Sorry.
2006-09-28 04:49:46 · answer #10 · answered by spot 5 · 1⤊ 0⤋