Can't pay my credit cards not working what's going to happen next?

Question

I am no longer working due to an incurable illness I have recently been diagnosed with. I am young and have about 2500 in cc debt that I just recently stopped paying in the last couple of months. I have no income and these people are starting to scare me. What will they do to someone with no income who cannot work due to an illness? Please help I am really scared.

Answer 1

I know that this is not what you asked but please file for unemployement and then for disability. This (disability insurance) was made for people in your situation.
The government can review your records and give you money to help you pay your bills while you battle your illness. It will also provide you with medical care.
best of luck to you.
P.s. there is no debtor's prison.
THe worst that will happen is that they will call your house at the start of the day and try to call you until 9pm at night.
2500 believe it or not is not that much so they will write it off in short order.
ALso, be sure to get your taxes filed as soon as possible. Even if you did not make that much money, you could be eligable for the earned income credit
The creditor might be thinking about entering a judgement against you so that money could come in handy to pay a part of what you owe back.

Answer 2

First, the days of debtors' prisons are long gone. The worst that can happen is that they can ruin your credit rating so that you will need to learn to live without credit cards. (Which is a good idea anyway.)
While you are unlikely to gain any sympathy from the credit card people, write them a letter stating that unfortunately you are out of work and unable to pay at this time. Also be sure to tell them in the letter not to phone you about your account. That keeps their nasty telephone collection people from calling and harrassing you. You will still get nasty mail, but that's easier to deal with.

If you simply stop paying, eventually the credit card company will go to court in your town and get a judgment against you, including penalties, interest, and costs. That's hard to fight as it is easy to prove that the debt is valid. This then lets them empty your bank accounts or garnish your wages when you do get another job. If you own 2 cars, they can ask the court to assign them the one worth more. They won't bother with household goods, clothes, or such unless you have something very expensive and they know about it. So, if you charged a nice laptop or expensive jewelry a few months ago, they can get that and sell it.

Your best bet is to contact a credit counseling service (see link) for advice and help. Let them handle contacts with the credit card company. Otherwise make sure you stay in touch with the credit card company - call them once a month to let them know your situation. Even $25 a month will keep them from going for a judgment. They will usually suspend penalties and sometimes lower the interest rate until you can get back to making regular payments.

Answer 3

Send the collectors a cease and desist notice. This legally prohibits them from calling you again. Here's an example of such notice: (this was faxed but it's usually better to send it by certified mail):

Central Financial Control
Fax: [phone]

January 17, 2007

Cease and Desist Notice

Re: Hillwood Hospital/ $25,782.65

Pursuant to the aforementioned account, I demand herewith a CEASE and DESIST of all telephone calls from your agency to my home, my place of employment and any other phone numbers of mine that you may have on file. The behavior of your collection agents is in violation of the FDCPA and hence will no longer be tolerated.

Pursuant to the Fair Debt Collection Practices Act:CHAPTER 41 - CONSUMER CREDIT PROTECTION
SUBCHAPTER V - DEBT COLLECTION PRACTICES
HEAD Sec. 1692c. Communication in connection with debt collection
STATUTE (a) Communication with the consumer generally (c) Ceasing communication
If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt.

This is your written notice and if not abided by, a complaint will be filed with the Federal Trade Commission. Furthermore, in addition to filing charges for criminal harassment, a civil action will be brought against you.

I hereby certify that a true copy of the foregoing was faxed on this day of January 17th, 2007
To: Central Financial Control at 1-714-704-7807

Signed..........................

Answer 4

The person coming to the door is either a process server or the sheriff attempting to deliver a summons. If you do not respond a default judgment will be entered against you for the total due and court costs and legal fees. Contact the holder of the debt immediately and try to work out a payment arrangement. They have a legitimate right to add interest from the time of the debt.

Answer 5

Face it head on. I found it's better to just be honest. Tell them what you just asked here. I believe that they can help to work something out with you. Some of them are actually human...lol. But Sven B is right. Since you cannot work , I think the government should have something in place. I would contact your local government. But don't be scared, it's also proven that people think and perform better when their not worried. By the way, $2500 really isn't that bad...seriously, it's not. I'm sure you'll be fine.

Answer 6

They can lower your credit score, and they can repo all that you purchased.

What incurable illness do you have that has caused you to stop working?

Also, I would think that this would be on the bottom of your "worry" list. If you're out of the job, how are you going to pay for basic essentials like a house/apartment, food, utilities, etc?

Other alternatives:
--Social Security
--Unemployment office

Answer 7

Um. Alright honestly....Bring you to court...possible jail time in extreme cases. If you really wernt working due to illness or other physcially debilitating issue, you would have known, or already have applied for some sort of disability, or support...and therefore wouldent have any fear cuz you would know the guidelines and what the norm is for people in your situation. But since you obviously havent sucessfully completed that it sounds...I would say the illness is more of a mental state, and you need therapy to learn why you are using illness as an excuse to avoid and disassociate from everyday responsibilites and getting a job. Alongside that, most therapists and counslers have ways of helping and guideing people through situations like these in a more tangable way like connecting them with financial advisors, or other such guidance people...they will be a liasion or advocate in a way for you in dealing with debt collectors, lawyers and in court. They might not directly help you with this, but they might know the right people to go to. You have under 3000 dollars in debt, so most likely they will ignore it, if you lay low, behave, and dont aquire any more debt to it. You dont have to speak to debt collecters. Most of the time they just keep selling your debt off to other people cuz they get sick of looking for it....till you get lost in a pile somewhere. Don't make it worse, cuz it will catch up with you. Debt Collectors are NOT aloud to harras you, you can report them, and it can hurt their collection of their money in a vaid way if they don't abide by this respect and law. Not trying to insult you, just my honest feedback.....

Answer 8

they wont do anything.....I know it sounds like a lot of debt but listen to someone who has bill collectors breathing down her neck for $15,000 in medical bills and $5000 credit card bilsl and a husband out of work for a year with a broken hip that wont heal and needing another surgery in two weeks.....They will call you and harrass you and be mean SOBS may even insult you and call you names.I had one do this twice to me ....They will cut off your spending on the vard, send to a bill collector and then they will pester you for two to three years...Just keep telling them your situation but dont expect them to care because they wont.....They will put it on your credit for sure ....Then after three years they will offer you a settlement of about 60% of what you owe and at this time you want to pay them to avoid court....Hopefully before that time comes you will be working and things will be smoother......Dont listen to them though all they can do is attack your credit.....at this point....

Answer 9

You should make contact with them and let them know your situation. I believe you may be able to file bankruptcy or at the worst they may try to sue you so you just show up to court date and plea your case to the judge. I am pretty sure the companies will end up just having to suck it up as a loss, especially since you are not able to work. At least it is not that much money that you owe, it could be way more. Good luck and best wishes.

Answer 10

I would suggest you contact a lawyer because, as we all know, creditors can be ruthless and many of them act like they could care less about HOW we pay them, as long as we pay them. Also, technically, paying $1/month is legal, too, but I understand, you don't have an income so even that is tough. So, yeah, contact an attorney. Many of them offer a free consultation.