financial question?

Question

Hello, I have recently had a judgement placed against me for a credit card by a collection agency. (I know that I should have paid the bill, however with several moves I lost track of the card and they lost track of me)The card had not been used for over 4 years. I have no personal property and am unemployed. I have a child with a disability that at this point prevents me from seeking employment. I am not on any federal assistance. I offered to make payments but the collection agency said that the offer was too low ($100 per month). They are now threatening to contact the sheriff. Can I be placed in jail or what are they contacting the sheriff for? Does anyone know what my next step should be? I obviously cannot afford a lawyer.

Answer 1

Are you married? Where are you living? What's your child's disability?

I can't see how they could put you in jail over a civil matter... ESPECIALLY since it's a collection agency (they don't have the right to sue you... they just try to make your life a living hell so that you'll pay to shut them up). It's against the law for them to threaten to take you to court.

You should apply for SSI for your child if they are deemed to be disabled. Your child would probably also qualify for your state's Medicaid program. It isn't a solution, but in your situation, every bit probably helps.

If you go to court, you can explain your situation to the judge. How old is your child? If school-aged, why aren't you working during those hours? Do you have a vehicle?

Sorry for all of the questions, but I'd really like to have a better understanding of your situation in order to give my best advice.

The following is an excerpt from Jean Chatzky's book "Pay it Down! From Debt to Wealth on $10 a Day"

According to the Fair Debt Collection Practices Act (FDCPA) of 1977, collection agencies are NOT allowed to:
* Call you before 8 A.M. or after 8 P.M.
* Use deceptive, unfair or abusive practices when trying to collect their debts.
* Threaten litigation if they don't have the right to sue you (creditors have the right to sue, collectors don't).
* Lie to you if they're trying to collect a debt by telling you they're going to throw you in jail or contact your boss.
* Call you on the job if they know (because you're a teacher, for example) that it's not possible for you to take these calls at work.
* Call you on the job if they know your employer has prohibited it.
* Threaten to garnish your wages (they can't do that unless they have a judgment).

Understanding these ground rules, what's the best way to deal with them?

HANG UP THE PHONE. You don't have to talk to a debt collector. And you don't have to return their calls. Many consumers make the mistake of trying to reason with debt collectors. If you know that what you're being called on is a debt you didn't accrue, call the credit reporting agencies and get a copy of your credit report, which will help you get to the root of the problem.

ASK THE COLLECTOR TO CEASE CONTACT. Make it clear to the person on the phone that you would work with them if you could, but right now, you can't do that. Then ask the collector to cease contact because it is causing you distress. That's important, because when you tell the collector they're causing you distress, they are supposed to stop.

PUT IT IN WRITING. Unfortunately, it's not enough to ask that a collector stop calling; you need proof that you did it. Taping the call is legal in some states -- but not every state -- so you're better off getting the name and address of the collection agency or creditor calling you, and writing to them. You can use the letter below or write your own. Again, the point is to ask them to stop calling because it causes you distress. Then send your letter certified mail, return receipt requested. Collection agencies have to stop when they get such a letter. Creditors don't, but often if they get the feeling that you are truly upset, they'll start worrying about being sued for harassment, so they'll stop as well.

GET A LAWYER. If you're being harassed, there are now a significant number lawyers in this country who will represent you. Settlements aren't generally for a ton of money -- they start at $2,000 or $3,000 and go up from there. That's because debt collectors know that unless you can prove you've been damaged by their actions -- that you've lost a job, for example, or suffered mental breakdown -- the most you'll be awarded in court is $1,000 plus attorneys fees and costs. But you can try. For a list of lawyers, try National Association of Consumer Advocates website, www.naca.net.

Answer 2

Ok for any collection agency to tell you they are going to call the sheriff is wrong . You can not go to jail for not paying a bill . You need to stand firm and tell this creditor that you talked to a lawyer and know your rights. You will be contacting the attorney general to file a complaint . Trust me this will scare the crap out of them . Also you tell them in writing that you want a copy of the debt . A original copy with your signatures , so you can review if the debt is valid ,99% of all colection agencys dont have the originals so then you tell them if they do not provide you with this info you want this debt closed and removed . This is the law ,also you will be waiting for this information so you can show to your lawyer . Dont let them scare you , say the word attorney general and they will back off fast .

Answer 3

Debtor's prison went out a long time ago.
No Sheriff will knock at your door for a credit card debt.

If you cannot pay it, there's not a lot that will be done. It will remain on your credit score for a few years.
Collection agencies are notorius for threats.

If you morally feel that you want to pay it, then just send any amount that you can live with.
If they refuse the first payment, keep a record of that refusal, then ignore them.

No court in the land can make you pay more than you can afford. I doubt this would ever go to court. The cost of recovery is usually more than the debt.

Good luck.