Is my social security and pension exempt from debt collectors garnishing?
I was forcibly retired last year and am paying 8 credit card bills -1 in collection - with an income of ss and pension only. I can't do it anymore. What do i do?
Is my ss and pension exempt?
—elliot
It sounds like you are asking what will happen if you stopped paying on all, or maybe just the account you already have in collections. The quick answer is that your social security income cannot be garnished at the source, and most pensions are exempt from garnishment too. You would first have to be sued, and a judgment entered in court, before there is any risk to your money from a debt collector. And what risk there is, given the sources of the income, would be when that money is on deposit in your bank account, so in the form of a bank levy.
If your situation reaches a point where you have to be concerned about how a debt collector will go about trying to collect on a judgment, you would then look to how much of your stuff (money in bank account, wages, personal property, car) is protected by state law. The amount of protection you have from creditors in your state may surprise you.
What state do you live in?
Bank Account and Wages – Limiting Your Risk from Debt Collectors
Before you react to how much risk you have if a creditor sues you in order to get paid, consider whether that can be avoided. Your not able to pay all 8 credit card debts today, so something has to give.
What if your credit card payment could be lowered, and fixed at a more affordable monthly amount?
Add up all of your credit card bills and then calculate two percent of that. Is that two percent much lower than what you are paying out to all 8 cards today? If it is, you are paying higher interest rates. If those rates are lowered (and fixed), would you be able to pay that amount consistently on your fixed income? If yes, read through the credit counseling section of my debt relief guide.
If roughly 2% of your consolidated credit card balances is out of the question, what about negotiating lower balance payoffs? Your credit card debts can be settle for less than what you owe once they reach a certain level of delinquency. If you are not making monthly payments to your credit cards, and saving up all the money you can instead, how long would it take you to pool together about half of your credit card totals?
If your answer is less than 36 months, settling these credit card bills may be the answer to avoid bankruptcy. Keep in mind that some creditors will accept settlement far lower than 50%. The review post about what major credit card lenders settle for is fairly accurate. Use that as a beginning guide to how much money you will need to settle with your banks.
You can post a list of your different creditors in the comment section below, with the balances as of today, and I can offer feedback about negotiation targets, timing, and prioritizing creditors who are the most likely to sue. Settling with the right creditors early can limit your risk of bank levy and property liens.
Put the Debt Behind You with Chapter 7 Bankruptcy
While bankruptcy is something most people want to avoid at all costs, I usually find they have not assessed the costs and benefits. While we talk about your credit card bills being affordable with credit counseling, or by settling for less above, chapter 7 bankruptcy is typically the ultimate in affordability.
Chapter 7 could cost you less than 2k from start to finish (I have seen costs less than 1k). Using bankruptcy you are able to discharge those credit card debts (and other bills), and once discharged, you remove any and all risk of being sued, or any type of bank levy, garnishment, and property liens.
You have to qualify for chapter 7 bankruptcy using an income means test specific to your state. And just like there are state exemption laws that protect you from debt collectors, there are state exemptions for what you are allowed to keep in a chapter 7 bankruptcy. If your stuff is valued at more than the exemptions in your state, you may look to a chapter 13 bankruptcy where you repay some, or all of the debt, over probably 5 years. But when it comes to people having to consider chapter 13, I have often found debt settlement to be a better alternative.
What if you just didn’t pay, and did nothing?
Some folks with too many bills, and not enough income and assets (such as being on fixed income from disability and social security), will stop making payments all together, and wait for whatever comes. If sued, and a court judgment entered, they already know they are not at risk because; their car and other personal belongings are protected by state law; they are not working in order to be garnished; wages are low enough in their state to be protected; live in a state where wage garnishment is not allowed; and funds like social security that are exempt are the only moneys deposited into their bank account.
Some people may feel that doing nothing is better than filing for bankruptcy, and there are many times I will agree. Check out the above interview I did with Eric Olsen, Executive director for HELPS. Eric and his team are available to help seniors, and those receiving disability and VA benefits, in order to protect themselves from all manner of debt collection:
This was a pretty long winded answer to a short question. My goal with this page is to bring the state exemptions from extra ordinary debt collection into focus. Anyone with questions or concerns about this topic can post in the comment section below. Please include the state you live in.
Need some personalized help?
I do offer a no cost initial consult to anyone trying to get their bearings on what to do about their particular situation. You can schedule the call using the Get Help tab at the top of this page.
I can usually offer actionable feedback in a brief call once I know the details of your situation.
You can post in the comments below anonymously, which I answer daily.
You can post in the comments of any of my YouTube videos.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
With going through the whole disability approval process we have accrued a lot of debt .I estimate 75% are Medical related. Our insurance is a PPO. I Was diligent on checking specialists & hospitals were in our network. Our insurance luckily is a good plan. &. The accepted Amt on the bills these MD S & hospitLs agreed in contract w ins is very generous. Due to several medical issues I have met the deductibles for two years quite early in the calendar year. However we keep receiving bills to collect portion not paid by Insurance. I thought contracted places made agreements prior & patient should. Not be liable for this Amt. Also do these. contracted places receive a set amount for. Participating in the network annually? It seems As though Amt received is more than enough. I was recently hospitalized for 4 days. The Amt Hospital billed for was $58,765 Our Ins paid all but $400 We received a statement Amt accepted however now the Hospital keeps trying to collect $400 R we expected to pay this ? Quite frankly I feel they should be content with large Amt ins paid & call it a day!
I wish it were that simple!
Are you unable to pay the $400?
Can they take money you have on a IRA that you have for retirement?
No, that is typically not an option. But talk with an experienced debt collection defense attorney if you are sued, and get a firm grip on what cannot be touched.
Great Resource here!
I have a few questions.
First my only income is well below the minimum wage (Disability only) The only possible asset I have is equity in my house. The house is held jointly with my wife. As I understand it my disability income is protected as is the house when held in joint?
BTW we are in Missouri
The debt in question is about 2000 in credit card debt currently held be Midland LLC .
Thanks for all the info here!
Mike
I am not sure the house is protected if Midland sues and gets a judgment against you. It could result in a lien filed against the home that would have to be cleared before you could refi or sell.
Live in maryland and soon will be getting a personal injury check for a car accident can credit card debtor’s intercept this check or take it somehow?
If you have a judgment against you already, I would be concerned about non exempt cash in your bank account. Getting the check from you before you cash it would be hard for them to do.
Talk with an experienced debt collection defense attorney in your state, or call the nonprofit firm in the video interview I did above.
I live in south carolina I am on disability 908.00 monthly. I have credit card and personal loans. I own my home .I have a car . I am not behind on anything yet but finding it hard to make payments.Can they take my home . My car is not paid for. Can they take it
No judgment creditor can take a car from you that does not belong to you, and the car is not yours when you are still paying it off.
Your home is at risk of a lien in South Carolina if a judgment is entered in the court. It is mostly automatic there. But that does not mean they come and take your home. You will have to resolve the lien when you sell or refinance.
I live in Arizona and recently has an operation. I am 75 years old and thought my Medicare and Supplement I had would cover it. It didn’t . I got a bill from the Hospital for $1505. I told them it might as well be 15 million. I can’t pay it. Even if I made payments the only amount I could afford I would be dead before I could make a dent in it. They turned it over to a Collection Agency that called me and wanted to know my intentions. I told them what I told the Hospital. I am Living on Social Security and a small pension which is put by Direct Deposit once a month in my Debit Bank Account. My question is can they seize my bank Account, of so would really screw up my life, might even get evicted if I couldn’t pay my rent. I don’t write any checks every bill I have is deducted from my Bank account. Can you let me know what to do? I read somewhere that Social Security and pensions were exempt from seizure. Is that right in Arizona?
What does “Awaiting Moderation” mean?
First time commenters have to have a comment approved before their comments auto post. This will also happen with any comment posted that contains a link. I have to set the site up this way due to all the spam that hits every day.
It likely is true for you in Arizona, but run your scenario by an experienced debt collection defense attorney in Arizona so you can be certain. You can also reach the law firm in that video interview I did above.
I was sent a letter telling me they were going to sue me for oweing them three thousand dollars, and if I didn’t pay they were going to get it from my income tax. Can they do that?
Who sent you the letter? Who did you owe the debt to originally? Was the reference to state or federal tax?
My rent went up $ 200 dollars I can’t pay my credit cards no more I owe $6.000 dollars can they sue me I just don’t have the money
Who is your credit card with? Some are more known to sue than others.
Hello, my name is Joe and I live in Florida. I am 80 years old and am widowed. Have limited income from pension and social security, after i pay my rent and household expenses I have about $165.oo left. I have also medical issues and want to know if i should just stop paying the credit cards and if they can come after me with any kind of garnishments? the credit cards are $630.00 a month which would really help me to live a better life without worry
If it were me I would stop paying on them. You can look at filing chapter 7 bankruptcy, connect with a place like HELPS (interviewed int he video above), or even stop paying and react to collection only if they reach the courts.
Im a single mom receiving child support which will be stopping next year and I have a low income of only 10,000 a year without support since I dont have a career because i chose to be a stay at home mom, no regrets. I have worked and saved and thinking of paying off morgage in next couple years. Im wondering if I need the tax write off of 3,800, I will still have property tax of 4800 yearly to write off. Would I benefit from paying off morgage?
3800 is interest I would be saving by paying off
Yes.
Dear sir I had a brain stroke December 2015 and had to retire December 2016. this past summer I started to receive credit when I applied for a loan thru a private source and the check was canceled after the bank approved it, then causing my checking account to close and charge me for the check I never receive. m credit started to plunge and my medical benefits ran out. I was forced to apply for social security which I qualified for. I can not catch up or get ahead and i need to eliminate all my debt for a fresh start with a better credit score. Please help anyway you can. Thanks
The quickest, and least costly way to eliminate debt, is often going to be chapter 7 bankruptcy. Not good for your credit score, but anything other than paying on time… all the time, is not good for credit.
Check out this article where I cover the primary forms of debt relief and the impact to your credit.
My only income is social security. I live in Albuquerque, NM and I’m not able to pay my bills. I purchased a home in 2001 and I still ow $88 plus on it. If I don’t pay my bills, can they take my home? This is the only property I have.
They have to sue and get a judgment first, and even then it typically just means they file a lien against the home (not take it from you or initiate an involuntary foreclosure).
Sorry, This is Mary Mora Again. I meant to say I owe $88 thousand on my home, Not $88 dollars. What would my situation be then?
Being a home owner with equity makes you a collection target still.
I am 73 years old. I make 1544 in SS. I can no longer afford my financed car. It was financed in TX and I now rent in AZ. I have no assets. What happens if I voluntary want my car repossed. Is my Ss safe?
Your social security is safe from any debt collector trying to collect on what will be a deficiency balance on the repossession (what is left owing on the car loan after they auction your car off and apply what they get to the loan balance).
I have very little and rent. Can they sue me? Car bought in TX and I am now in AZ. If they sue me, what would happen? Thank you.
You could be sued. If they get a judgment, based on what you shared, there is really nothing they could do to force payment.
Thanks!
Michael
Day before yesterday I got a motion to” change venue “from a firm in Wa and I live in Idaho., The firm is Suttell, Hammer and White PC. So I called the office and spoke with a lawyer there , he said he was not licensed in ID , I wanted to know if I am being sued, because it looks like the forms that I get from my neighbors attorney except that the plaintiff is Discovery credit card. The lawyer said yes Im being sued for $5,977.00 and that the court where I live now needs to review change venue motion. Apparently the county that they have me living in I have not lived in 4.5 yrs so they need a judge to sign the motion and I will be served in the county I currently live in! I told him I was told by legal aid that I am judgement proof and am being sued by my neighbor, he is now threatening me with contempt of court because of circumstances beyond my control. I haven’t started paying him anything yet because he still thinks we are blocking the easement with rocks, which we tried to take down last weekend but there was subzero conditions and ice. I have kept the judge apprised of the situation and left voicemails with his lawyer but the lawyer never calls back. In the morning I am sending the note to the judge and lawyer that I had the man that was going to remove the rocks wrote so they don t think Im ignoring the judgement. Now I also have to deal with Discovery bank !The lawyer at Suttell, Hammer and White PC advised me to send a letter to the firm to his attention saying that I am judgement proof. I mailed that off yesterday. I know I still am most likely going to get sued and I also owe Wells Fargo and US Bank money approx 5 grand each,, What should I do now? Thank you
With a home, whether you have decent equity or not, you are not technically what I would consider judgment proof. Just your income sources.
I suspect Discover will still sue. Contact Ryan Ballard about debt collection defense in Idaho if you want to get feedback about fending off the lawsuit until you can settle it. He is in Rexburg, but covers the state on debt collection defense.
If you do nothing, and they get a judgment, it will likely end up with a lien on the home.
Okay thank you
I’m on SSDI, just for a year and a half ago and I am not able to make payments to doctors because I’m not on SSDI medical yet . I have to wait until this September to get it. I have been use to being able to pay all my bills but it’s because I had worked for a Mill for 31 years and made good money.. I bought a new car almost two years ago and I am trying to get through the process of being able to get it refinanced. but I have to wait for a year or so. I’m paying for my medical and I have about 600 I owe because of my deductible. Now I’m getting stuff through the mail that they are going to take action against me. I have never been so scared in my life as I am right now. I owe three credit cards that are threatening to take me to collections and I am trying so hard to find a way to pay them. I have really bad anxiety disorder and I have been crying and depressed about this and I recently moved to a really small town away from my friends and family and all of this is a very scary situation. I get 1401, in disability benefits and 334, in pension fund. The way I was living I was able to pay for my bills easily. But after I had to retire from my spreading arthritis and anxiety disorder it seemed like now I have more bills than before. it’s because I had really good insurance and good pay.. I need to be able to keep my car because I have to travel over the mountains to be able to see my mental illness counselor. I am living in an area where there is no one that is a in network provider and I found that out the hard way because now I owe 600 dollars for a out of network doctor. So I drive three hours away from me to get a Good doctor. I have been through bankruptcy about almost 7 years ago and I don’t know if I can do it again. Do you know if I can? And am I able to keep my car because of my disability? I have been so stressed out about this and I am going through a bad depression. I can’t do this anymore and I really need to get some help. I’m 52 years old and I didn’t want to be disabled and it has been a long grueling time for me. I loved working and my feet are not able to do what I was doing. I need two of my toes cut off from arthritis and I am on six different medications for my anxiety disorder and arthritis. This really sucks! Thank you for your time and consideration for this matter. I hope that you can guide me to do it right and still have my dignity. PEACE.
There is an 8 year wait to file chapter 7 bankruptcy. You can look at filing again in a year.
How late are you on the credit card bills? How long ago were you originally billed the $600 medical?
I am 82 years old. Divorced. Being treated for COPD, Prostate & Bladder Cancer. My sole income is from Social Security and private pension. After all fixed expenses I have $600 monthly to cover food,
clothing, prescriptions, gas etc. I rent a house, have a car payment and owe IRS back taxes.
If I stop paying on 4 unsecured loans (3 credit cards and one signature loan) can a judgement be
levied against my Social Security and Pension? I do not have any savings or other assets.
Your social security is protected, as are most pensions.
I live in Kansas and I will start receiving SSDI starting Jan. 2017. I am being sued for medical bill. Can they take my disability?
Your disability is protected.
My retired mother in Chicago is getting sued for not paying her credit cards. She was forced retire last year and basically has zero savings. Her husband left her and she takes care of her disabled son (my brother) who has cerebral palsy, epilepsy and retardation. She currently lives off her social security and my brothers disability checks. She currently has 2 court summonses in Chicago’s court system. I live in Oklahoma and currently going thru my own financial issues due to a divorce. What can I do to help her?
I would suggest she first talk to an experienced chapter 7 bankruptcy attorney about her options to get a fresh start.
I live in Mi. I’m retired , receiving a Calpers pension from Ca. I also receive social security benifits . I was recently served a summons for unpaid credit card balance .
I fell behind moving to Mi. a year and a half ago . My question is .. Is my social security and Calpers Pension excempt from garnishment living in Mi. ?
Thank you
More than likely, but call in and confirm that with the group in the video above, or reach out to a debt collection defense attorney in Michigan.
The judgment will not be going away, and will grow with interest. What is the amount you are being sued for, and who is the creditor/plaintiff in the suit?
My grandfather has 5 credit cards totaling about $16,000.00 and 4 store cards with $$10,000.00 he gets ss and military retirement. He can no longer afford to pay them due to health care and medication costs. He lives in Louisiana he is 86 years old and owned his own home. The house is assessed at below $20,000.00 he got a message that cominity bank. Saying that he needed to contact him with a name and number of the lawyer representing him he said if he was not being represinted by one he recomended he contacted him to discuss this matter. That if he did not contact him that day he would have to assume he had no intentions of contacting his office. And he would proceed with actions that may directly impact him. He recorded and documented this phone call to prove he had notified him of this matter. Can they take his house and put a lien on his home. Can they sell his home if he passes or make his children pay it off when it’s been willed to them. He has no other assets and no vehicle other than a 2000 dodge pick up that is worth less than a grand. Can they come to his home and try to collect.
If he is sued for a collection and a judgment entered in the court record, that could result in a lien placed on the home. That lien will eventually need to be paid if want to sell the home, refi, or it passes to his heirs.
It is unlikely that debt collectors on the store and credit cards will show up at his home. But if he is sued, those papers are usually served to his residence.
I don’t see where I have covered exemptions from judgment creditors in Louisiana in the comments before, so here are those details for other readers.
Wage garnishment is allowable in Louisiana up to 25%.
Your car value is protected up to $7500.
You have a 35k home exemption in LA.
All necessary household goods are protected.
And while there is no cash in bank account exemption in Louisiana, you know that his sources of income are exempt at the federal level.
He could get rid of all the debt and keep his home no problem with a chapter 7 bankruptcy, which is something to think about.
I have just been served with a summons by Barclays for 2500,00. I lost my job due to injury and am currently applying for SS disability. I receive social security and a pension from my late husband from the state of Ohio. These funds are deposited directly in to my bank. I live in California. Can the funds be frozen? If not do I have to go to court for this summons or can I just do nothing ?
Funds in your bank from an exempt source are protected. Your SSI is safe. I would encourage you to reach an attorney about whether the Ohio pension funds are. You can reach the folks at HELPS to confirm. I did the video in the above article with their founder.
There are other reasons to prevent a judgment. Are simply in no shape to negotiate a settlement with the attorney for Barclay Bank? What if you had 6 months to save up?
I have a friend who is 76 years old in texas. She has been paying care credit for five years for a partial plate. With 29% intrest and 37.00 late fees she has probably paid three times the cost. Her fixed income is barley enough to pay rent medicine and food. She has no assets except a 99 ford. She wants to stop paying because she can’t gain on the balance. What can she do?
She can stop paying if the amount is a hardship. I know I would. If she is judgment proof there is little they can do to force payment. There is little to worry about Care Credit suing for collection, but they do sell debt later on to debt buyers that will sue. My suggestions for later will change depending on who picks up the debt.
I just got a notice today I am being sued in small claims court for a $3200 credit card debt. I lost my job a few months ago because the place I worked closed. I am now retired and my husband and I only have our social security checks and no money except that. We barely make enough money to pay our house payment and electric bill each month and are on food stamps. There is no way I can pay this bill. We have a house that we have about $15,000 equity in and one car worth about $8,000. I live in Alabama. I cannot afford a lawyer so I do not know what to do. I have 14 days to answer their letter. What do you suggest.
Who is the plaintiff suing you?
Richard Moxley out of Montgomery for Midland Funding
The options are not great. You can defend the suit, set up payments (now or later), negotiate a settlement, or let this thing go to judgment and… just let it sit.
You are not fully collection proof with the home as an asset. But they cannot take SSI or other exempt money from you. Any property lien that may result from a judgment can be addressed later on too.
I typically find it easier to negotiate a settlement now though, as opposed to after a judgment is entered.
We have no money to make a settlement. All we have is our social security checks each month. If I had some money I would have offered a settlement already. I decided not to answer or defend because I do owe the debt on the credit card so they will get a judgement whether I answer or not. I know in Alabama a married couple is protected with $30,000 worth of equity. If they put a lien on the house I will deal with it down the road. That is all I know how to do. All the money in our checking account is exempt.
I get SSDI as my only source of income. 6 months ago I got so overwhelmed with debt that I wrote all my creditors and told them I could no longer pay these accounts. I read in a bankruptcy book that given my circumstances I could not be sued because all I had was my SSDI for income. Is that true?
No, you can still be sued. It does not matter that your completely protected from judgment creditors. And it does not matter that you noticed your creditors of your situation. They can and do still sue. They just won’t be able to collect.
Silly, I know, but it is what it is.
I am on ss disability and sis totaling 750.00 a moth. Ican barely pay my bills but have a good credit score up to now.. I consigned on a bank loan for my grandsons mother. Totaling 2,552.00 with monthly payment of 135.00 . She has not made one payment and the loan is now in default. I can’t make these payments of course she assured me she would always make them. What can the bank do to me?. I live in Kansas, i am very frightened.
If you are sued you are at risk of property lien or bank levy in Kansas. Your SSI income is protected.
Making a question for my mother who does not have Internet. She went to court today to answer a summons for her 5,500 credit card debt. The attorney for the creditor told her that a judgement would be placed against her and said she could leave so she did. She has no income and lives off of her husbands social security income as he is disabled. They have a bank account and a very used- little worth car, they have a condo that still has 14,000 to be paid on mortgage. She is worried they will take her husbands money out of his bank account or take their car or house. They live in Colorado and I have been trying to research what the creditor can take. Any help would be great so I can put her mind at ease. Thank you.
Having a judgment against you in Colorado means you have to be concerned about:
Close to 25% of wages can be garnished.
Up to $5,000 value of your car is protected.
Up to 60k of your home equity is protected unless you are elderly or on disability, than up to 90k is protected (sounds like it applies to her situation).
Up to 3k value of household good are protected.
And there is no exemption for cash in your bank account. But federal laws would protect SSI and disability payments.
So if her car is valued at 1000 can they take her car? The only income they have is SSI. But can they freeze her account to verify that?
They would not be able to take the car. And if the only money in her bank account is from social security, these days, the bank should prevent that from being taken without her having to make the effort.
I am out of work due to a previous injury leaving me unable to work. I am in the process of filing for disability also. I helped my daughter open a bank acct at age 19. They told I should be on tbe acct in case she goes away to school but that we would have separate acct numbers. way to school. The put a levy against me pulling her money. Ive done research and it says she just has to prove money coming into her acct is her not mine to stop the levp. Is this true? Clearly the direct deposits are in her name only.
Also, she makes my car payment while I have no income. Can my vehicle be seized?
Thanks!
Have her contact the bank and get that ball rolling immediately so she can get her money back.
Who has the judgment against you? What is the name of the collection law firm handling this? The state you are in will often dictate the amount of exemption you have for vehicle value. Where do you live?
Hi Michael, my most recent update is as follows, I went to court on 11/7 to dispute the fees and costs and told the judge I felt it was a frivilous lawsuit, I did the best I could without a lawyer he also told the neighbors lawyer that it was frivilous, still on 11/18 they gave me me a judgement of $3,138.38 and $206.00 in costs and fees, which is down from original cost. I contacted a lawyer thru legal aid and she went over my finances with me and said I was judgement proof, She still said I could get a lean on my property when housing prices rise. Judgement is good for 5 yrs. Right now she said I dont have enough equity for a lean using the $100,000 dollar idaho exemption. She said I had 3 options. 1. is I can appeal,but its tricky , she would have to email me the small claims context -edit it and change headings with 42 days to do it in. 2. . Is contact neighbors attorney and say Im considering an appeal could I settle for $1,500..00 out of court ,I could possibly get that amount from my boyfriend . 3. is to pay $50.00 per month over 3 yrs time, 4 is do nothing but I dont want lien on property at all! I am strongly considering opt 3. Dont know if I can win appeal on my own per se. Feel terrible that I got slapped with this , If I appeal will I even have a chance? if I lose do I pay neighbors fees?? I can lose my house with a lien. What do you think ?
I have no way to comment on the viability of an appeal. If you want to try to negotiate a settlement I would be prepared to offer more than $1500 because it may come to that. I am not a fan of monthly payments in these scenarios if it can be avoided, but I know there are times it will make sense.
Thank you , I spoke w/ my neighbor last night apparently the rocks are not moved back enough for what it says in the court order, we did have a civil conversation, He said there are 2 more things he could do to me….I told him I was judgement proof he said the rocks need to move more, I cant do it they are huge and frozen, my boyfriend cant do it now either, I told him I would pay what I could , Right now I feel I could be in contempt of court. He did really appreciate that I finally spoke to him and seemed nicer though . Can they take SSI if contempt of court over this?
Your SSI is protected in most situations. Some exceptions can be tax and federal loan related.
i got into a contract to sell my va disability to borrow 2500 the pay back is 350.00 for 48 months the total payback is 16,800 i need to defualt on theis contract i havn’t received the 2500 yet i plan to cuange my bank account to stop them from taking any money out can the buyer of this contract sue me and take my va pension being i backed out of this contract
Connect with a low income legal aid office in your area or reach out to the nonprofit firm in the above video and get legal advice about your situation.
I’m a single mom with 3 kids who lost a job and was unemployed for 2 years living in a homeless shelter or my car. I got sued by Capital One and filed an answer. No $ for a lawyer. Now they want to negotiate payment but I have little money left after paying rent, utiilties, food, and car payment/car insurance. I got a job a few months ago but I’m barely getting by. Ex refuses to pay child support. I don’t want to file bankruptcy at all. I owe on other old credit cards/medical bills and haven’t been able to save enough to start making payments on those either. What do you suggest?
What is the total of all your unsecured debts?
Hello. I live in Indiana. I am disabled and receive Ssdi. I have an automobile loan that I cannot keep up with and is financially draining me. I have all my other necessary bills such as rent, lights, water etc. I am unable to have any money in reserve for emergencies. I am thinking about the only possibility I have for a way out is bankruptcy. If there is any information you can give me it would be greatly appreciated. I have 2 credit cards for which I am basically using for emergency issues but they too are now behind. I’m stuck and need help! Any information will help! Thank you
Review this article about consulting with a bankruptcy attorney first, then connect with one or more for a consultation about chapter 7.
How much are the credit cards?
What alternative do you have to get around if you give the car back?
I am 67 years old was forced to retire in May health reasons . My husband and I are on the title of ou 5th wheel that we live in . All debt is in my name only as my husband was unaware can I remove my name from title can they still come after trailer if so all or half of it ? It’s worth around 38,000
Are you still making payments on the 5th wheel? What are the debts you owe, and when did you stop paying on them? Have you been sued?
No it’s paid for what happened is I was more or less forced to retire in May we sold the house and paid off what we could the remaining debt is in my name only the fifth wheel is paid off but I am on title we live in 5th wheel in rv park
I was forced to retire in May we sold our house paid off everything we could I have unsecured debt in my name only 83,000 the fifth wheel is in my name and spouses i have depleted my Ira so I will start not making payments this month no never sued just good job and good credit
Fill in the talk to Michael form in the right column on this page. I will email you when I get that, and set up a time to talk with you on the phone.
I lost my job in September of 20015 due to medical problems. I’ve filed for disability and anxiously awaiting. My parents pay my bills and rent. I don’t quality for medicaid , and I get $19.00 a month I food stamps..I have a credit card company treating to sue me for 800.00 ..I live in Nebraska. I only rent andy car is maybe worth 600.00…I’m so scared. They harass me, called me a loser, and text my mother! I’ve been in medical field for 27 years and now I’m at my wits end.
Who is the collection agency texting your mother?
I live in Oregon. I own my home valued at 133k. I have 50k worth of unsecured credit. I am being forced to retire due to disability. I will have a pension and ssd. My payments for my unsecured debt is too high to make the current payments. Is it possible to file a chapter 7 and keep my house. Any other ideas please.
133k is too much equity to have in Oregon in order to protect the home in a chapter 7. You could do chapter 13 or settle with the credit card companies to avoid bankruptcy.
I highly recommend you do 2 things:
1. Consult with an experienced bankruptcy attorney in your area after you read this article about finding an attorney.
2. Read through my article series about settling debt for less than you owe.
I’m being sued in small claims court by a contractor. I have social security income only. Does it make sense to appear in court? Contractor does not have my current address.
Can you offer more details? Generally speaking, it is a good idea to participate in the process when being sued.
I was hired by state civil service in 1977 as assistant payment worker in Detroit Mich I am not retired social worker. My pension was taken partially 45 dollars out of bank account by fingerhut since August new federal law may 1 2011. Was broken.
Talk to an experienced debt collection defense attorney in your state about your options. You can also raise concerns with your bank.
I am 71. Yr old getting 985. Per month. S S. I was forced to stop working after back surgery and a rod placed in my back. I live with my daughter. Who lost her job several months after I did. She used to help me. I have a small savings account. I got a letter to appear at mediation for my credit card debt. Can they take my savings from my account.
How much savings are we talking about? Your Social Security is protected, but if you have a good amount of cash saved up, that could be at risk if they get a judgment against you.
Who is the plaintiff suing you, and for how much?
Need advice… The Wisconsin Department Of Revenue is trying to come after me for money for a past debt from a college I had gone to about 5 years ago. The debt amount is just under $500. I was told that a levy would be placed against my checking account, but when I called the Wisconsin Department Of Revenue, they had told me that they were unable to receive anything due to me only getting SSDI and that my income is protected… Is this true? I told them I could do a payment plan of $5 a month, in which I filled out a payment plan for that amount, but they told me the least they could do is $20, which I did not agree to. I received a notice stating I need to pay $20 by October 31st or they would take collection action, which includes a tax warrant, collection of my state tax refunds or other payments given to me. This all makes me very scared since I don’t have the funds to pay the debt and I don’t want to end up in trouble with the law or anything else!! Please help with any advice you can give me… Thanks!!
Do you normally get a tax refund?
I’m physically disabled and learning disabled and have not worked since 2001… I’ve not paid or received a tax refund ever since then… I tried to go to college, but it was tough on me with my learning disability and was unable to pass the two classes I tried to take… When I applied for college, I had accepted a grant that covered my classes and tuition, but the college had told me that due to me not passing those classes, that they would charge me the tuition, which is what the Wisconsin Department Of Revenue is trying to get money from me for… I honestly didn’t know that when I accepted the grant, along with not being able to pass the classes that I would have to pay back any of it, since it’s a grant!! If it were a loan, I could understand, but it wasn’t!! So, I don’t know what to think about this!!!
It is common to have to pay back grants if you do not complete classes or even the degree.
hi good article thank you but I can’t figure out what to do – I’m medically disabled and unemployed, have been doing a workers comp case for 3.5 years and my husband is the only one working barely making ends meet and we have a family … behind on some bills – trying to stay ontop of everything and there is only one creditor that is not working with us. Tried credit consolidating but still working on it and now getting a letter trying to collect by court judgement
Who is the original creditor at issue? What is the balance owed? How long has it been since you paid them?
Discover card, we were making payments to the for balance on card and were unable to keep up due to financial hardship. We were in contact with them every year to see what we can do to work with them and a lot of times they would work with us in smaller payments if i was able to do that. mid 2015 – thats when a law group started contacting us
Have you already been sued in court, and if so, when? Is there a judgment against you already?
yes – they are trying to get a wit written I think thats what it is called …
i called and spoke to the law group directly to see if they will work with us and spoke to them today – he says that they would want to get the balance paid in 3 years and they were going to see if they would take 150 a month – we asked for 100 and she said it would push it out to 5 years … we are trying to get lower so we can afford to pay as comfortable as possible finance wise … what are our options? what can we do?
If you have assets or income to protect, setting up some form of payment can be better than the alternative. But if you are on a limited and fixed income, with little to no assets, there will be little they can do to force collection. You can circle back and resolve the debt later when the situation changes.
Thank You for your advice …:) I do appreciate the time you took
just clarification on assests as in what – our income goes to basic needs, mortgage, bills
Thats about it
Your home is an asset.
Dear Sir,
I’m 72 and have a unsecured loan with One Main Financial in New York. I now live in Missouri. I draw Social Security and have a part-time job where I gross $75.00 a week. I have fallen behind on this debt $220.00 payment per month. I have been sending what I can and keep talking to them about lowering my payments but they just will not work with me. They have threatened me with garnishment. I keep telling them I am sending more than they would get from a garnishment but they keep demanding more….What advice would you give me. My wife is not on the loan can they demand payment from her? Thanks for your advice.
They can demand all they want, but if you cannot pay it, and are further protected by state law (you meet exemptions from extra ordinary collections), there is nothing they can do about it.
They cannot make your wife pay something she does not owe. And they would have to sue before they could impact your marital finances.
hello great info you offer here
heres my situation
1. im waiting for a disability hearing in jan 2017 after 3 long years
2 my ex wife has a judgement against me
how do i protect my homestead property (homestead should protect this)
how do i protect my car, and my funds in my bank account?
If im awarded disability benefits, I will be receiving a lump sum. I believe that SSDI is protected, is it also protected in the lump sum payment? When deposited into my account?
if would email the response or link to the response. My memory isnt the best with my disabilities.
Talk over your situation with an experienced attorney. I can email you a list of contacts if you like? What state are you in?
Property have a l lien on it in lawyer trying to foreclose 4 a collector need a lawyer in Shreveport Louisiana
I sent you an email with contact details to a few attorneys with the experience you need in Louisiana.
I live in nyc and was forcibly retired from A 19 year City job in June 2016.
In August I lost A court case and student loans and IRS are taking SSA leaving me 750 month and get A Pre-Pension allowance of just over 500.00 month. As A result my rent is 3 months late and my con ed bill has A turn off next week I live alone. What should I do???
Have you looked at your hardship collection options, or being deemed un-collectible by the IRS?
What was the court case about?
It was A Civil Case In Small Claims Court. It dragged on since 2014 and I lost the Case.
The biggest issue is that DOE will not grant any relief from garnishing my SSA almost as soon as I began receiving it. It leaves me with little money to pay even rent.
I’m on SSI disability I have about 13,000.00 credit card debt and am paying for a new car. I must keep new car do to illness requirements. I want to know if I file bankruptcy Wichita I also cannot afford will they take car away
If you are still making payment on the car you can often reaffirm that debt and continue to make your payments, and keep the car.
i just received a writ of summons from the state of new hampshire judicial court for a debt of 7300.00 from a past loan. i am on social security and collect unemployment, but unemployment will end soon. the writ says something about filling out an appearance form for the court. i agreed with the atty for the debtor to send in 100.00 per month and have not signed anything yet. i got so nervous when the atty called i did not think about all my expenses just to pay rent and live. i do not own a home and have a 2004 car.
If I were in your shoes I would not agree to pay anything if I could not afford it. There is little a judgment creditor can do to force payment if you are judgment proof and meet your states exemptions.
I just received a summons, from the 2nd divorce lawyer I hired. He is suing me for services rendered to finish up my divorce. I also, around the exact time my divorce was completed) started receiving Social Security Disability. I had also filed bankruptcy, but the lawyer doing that for me, was also with the same law firm, so of course he’s not going to add them. I have been hospitalized in October of 2015, January of 2016, and February of 2016. I had a blood clot the length of my leg. I am waiting to see if I might need (since I am in severe pain) 24/7 another back surgery. Can this lawyer win the lawsuit?
If the attorney has a legitimate claim he can certainly win the lawsuit. But that does not necessarily mean he can get paid.
My Washington state father has fallen victim to scammers and has racked up credit card debt. He lives from social security check to social security check. His only other money is $400.00 monthly from his reverse mortgage. I know his social security is exempt from collection. My question: Is the $400.00 a month from his reverse mortgage exempt from collection?
Washington protects $200 in the bank account (and all SSI). There is a wild card exemption in Washington that can increase protection for cash in your account by another $500.
After twenty years of working I forcibly retired due to my health no pension now I live on sic sec disability just turn 60 and I made repayment plan with one of my debtors but it gotten pretty tight to make ends meet die to I paid a mortgage I am single light water groceries. They threaten to take me to court. I reside in Puerto Rico are my benefits protected and where can I get help here.
Who is threatening court? What is the debt about?
Due to a trauma in my family I am mentally no longer able to work. My only income now is social security. I am 65 years old and will be 66 in December. I was told it would not be worth my filing a bankruptcy. Can the 3 credit cards and one loan send in 1099’s to the government and force a tax payment on me. I only receive $860 a month.
I do not see too many banks, other than Chase, proactively sending out 1099c’s on cancelled debt that were not settled. Even if they do, not everyone owes tax on forgiven debt.
I live in Illinois. I became a widow on August 3rd of this year. MY husband and I had just moved into our condo last September. The condo was paid for in cash as was my car. I receive ssdi monthly. I’m considering filing a chapter 7 due to excessive medical bills. Will creditors be able to attach a lien on my home or car.? Will chapter 7 prevent that?
Talk to an experienced bankruptcy attorney about your options. Illinois protects very little of home equity, unfortunately.
I believe I have a somewhat unique situation because I have not been able to find answers. I was awarded disability in March of this year so I received a lump sum and now monthly payments. About a month ago, I received a judgement from an old creditor. I filed a request for exemption (disability) and the creditors attorney’s office opposed the exemption. I now have a court date in a week regarding the claim of exemption.
I understand that tracking the lump sum money is very important. I feel I’ve done a good job with this. However, I still have money left over from my lump sum. Do you know if they can touch that money? I transferred it to an investment account. Also, if the judge rules in my favor, will the bill collector be able to pursue this again in the future? And one more issue is that I used the same bank account that I’ve always used. My significant other would write me checks to cover household expenses. He only wrote me two checks after I received my lump sum. Naturally this is not income and I have a copy of all those checks. So, I’m not sure if this is something that needs to be addressed as well.
So I’m wondering if I should settle this or go for an exemption. Naturally I would like to win an exemption and be done with this, but not if they will continue to hound me.
Thanks in advance!
Call and speak to the people at HELPS, who I interview in video in the above article. You can reach them at http://www.helpsishere.org
If you are better off settling it, let me know, and I can offer more feedback from there.
I live in Colorado. I COULD pay all of my debt if I could refinance my mortgage. My condo it worth $325,000. I owe $170,000 and I have had four different places tell me that my DTI is too high, even though I know I could easily pay the mortgage. My FICO IS 658 (because two off my credit balances are less than two years old). If I try to go Chapter 7, can they take my condo. My present mortgage is 1200 a month and if they take my condo, the rents around me are at least $1200 a month and that is for a one room rental in a “not so nice” area. I am afraid I would have to give up where I live. I got into trouble by helping my son in law after he lost his job. He is making money now but just enough to feed his family and not much more. I needed to add about 95K to the mortgage making it about $260,000. The banks and three other places won’t do it because of my DTI. My pension and social security are about $3,800 a month. I have tried over and over to do the right thing and pay my bills but the banks are telling me the underwriters will not approve the loan.
Your equity appears to be too high for your state to not have your home impacted by a chapter 7 bankruptcy. Who are the credit card banks you are dealing with? What are the balances on each account?
Citibank $4,500 Barclay $25,000 and Wells Fargo $23,000
Citibank may not sue all that much currently, but they sell to debt buyers that do. Barclay is a real risk to sue currently, and Wells Fargo is active in the courts again.
At the end of the day, if you were sued and a judgment entered, there is not a lot to collect on until you try to refi, sell, or pass on your home.
Citibank $4,500 Barclay Bank $25,000 Wells Fargo $23,000 A regular loan (Prosper) $8,500 and a car loan for $22,000. My mortgage is 1200 a month and my HOA fees are 225.
If a chapter 7 is out of the question, what would you suggest. I feel like I am drowning. So far I have kept everything up to date. This money will be the month I will start to get behind more than 15 days. I have managed to stay up to date because of family helping but they cannot anymore.. As you can see my family does all it can to help each other but we are all at a time when we are all up against the wall and not able to help anymore.
Prosper loan are sold off to debt buyers currently. That buyer sues.
You may just decide to default and let the chips fall where they may. You can look to put out fires with any creditor that sues, and could save up money each month to handle later situations that arise. Family may be in a better situation to help later too.
Sometimes it just is what it is for the time being.
I tried to refinance my home, and I talked to the creditor to get a loan resolved in with I cosigned a car loan for my daughter. She gave the car to me and was not keeping insurance on it. There is 12000 owed on the loan and she has destroyed the value of the car so selling is out if the question. I am on disability and I have a pension . What can I do i cant afford it but was gonna try. But I can’t make a payment like that and insure it. They don’t want to work with me so can I give it back and can they garnish my income or freeze my bank account?
They would have to sue you and get a judgment before they could try any of that. Even then, your disability and pension have protections. Do you own a home?
I’m a widow and disabled. I’ve filed for my va pension and disability. But at this time have no income . I live in Tennessee. I’ve lost two husbands and gained all the debt. So were do I stand being threatened with Lawsuit by creditors. Please tell me. Thank you and God bless.
Those 2 income sources are protected. Do you have a home?
How much do the debts add up to?
my wife and i are on social security disability. in nevada. this is our only income. we have credit cards way over our heads, but can keep up on them if we let a fifth wheel travel trailer go back or repo. we haven’t used it in five years because of medical reasons and been paying on it for about eight years. its in wifes name only. we owe about forty two thousand on it. if we let it go back to bank can they collect any moneys from her or me?
In those situations the bank will auction off the 5th wheel and apply the sale price to the loan balance. If there is not enough money to cover the loan there will be a deficiency balance. That becomes an unsecured debt that will end up in collection.
What are the totals on the credit card debts?
Right at 20,000 I want to keep paying cards but can’t if I keep paying trailer. Can they collect on my s.s. ? I do own house with bal of one hundred forty tho. With maybe twenty five tho. Equity
Home ownership makes you more of a collection target. Why not shed the RV and the credit card debt in a chapter 7 bankruptcy? Given the exemptions in Nevada you would be able to keep your home.
Your social security is protected from creditors, even if they get a judgment.
My husband died in an accident on Easter morning. Obviously this was very unexpected. I then did incredibly stupid buying like most widows – I guess trying to fill the space he left. I’ve gotten myself into a position when I cannot pay my credit cards at all. I still have our home and want to keep it. Before my credit got really bad, I got a new car to replace my 10-year old car. I live in Florida and am currently being garnished by the gov because they claim they overpaid me for SS disability. I disagree but did not challenge the garnishment because I was making payments – well, my husband was as he did the bills. Ironically I will have to go back on disability soon as I have an incurable, progressive disease. I cannot find a disability lawyer to help me and don’t know what to do about the credit cards. I feel horrible…
I would look into chapter 7 bankruptcy to deal with the credit cards before doing anything else. Talk to an experienced bankruptcy attorney in your area.
I had a Toyota truck repoed and they sold it for less than I owed on it . Toyota took me to court and won the case $11000. I am on disability and only hav around $500 in my checking account. My lawyer said there is nothing Toyota can take even though they won. My case is a hardship case. My husband had a bad medical injury and is in nursing home since July 2015. We have no assets. We have lost our home. I received a notice in mail this week saying they had won and I owed 11,000 and also they said they haven’t heard anything from me in 20 day. It also said there would be an 8% per annum what ever that is. Am I going to have this hanging over my head for the rest of my life? I have PTAs and high anxiety with panic attacks. I live in Indiana. Since it is a weekend I can’t get a hold of my lawyer and I am driving myself crazy with worry. I’ve never not paid my bills so this is the first time I’ve had to deal with this. Please give me something to go by. Thank you.
It sounds like you are judgment proof. You will have to deal with the judgment eventually, as it will not be going away, and will grow by 9 percent a year (that is what the per annum means).
You can file chapter 7 bankruptcy and get rid of the debt. But talk to your attorney on Monday. Meanwhile, try not to fret about this. They are not in much of a position to do anything about the judgment.
I have talked to Eric Olsen with HELPS but I’ve found no way to prove it is a legitimate business. Can you help me find out? They are not BBB accredited.
You can call and ask Eric to respond to your comment more fully. Here are my thoughts:
1. HELPS does not charge enough to be doing the work they do for the wrong reasons.
2. BBB membership does not identify good or bad companies. It just identifies companies that pay the BBB for membership. Many companies in my industry are BBB accredited, and I would not send anyone to them for assistance.
3. Attorneys are licensed. You would check one out with the Bar association. I checked just now and Eric is a current member in good standing since 1978.
We r being sued for $8000 in medical bills from a rehab facility where my husband was due to various health issues, a broken neck being first & foremost. He cannot get supplemental health insurance due to his health problems, nor can I. Therefor all either of us has is Medicare. Now we have a 14 year old car, no home & $50 in a 401k. We both collect social security & he has a three digit pension. Can our social security be attached?
No, your SSI is secure.
I can’t believe these people apparently this attorney must be hungry. I have not worked in ten years. I filed my SS retirement I was afraid these people would take my money. The debtor received his money but he wanting more. Thank you for allowing me to view your video
Would like too know if I just paid a dollar on a 800 dollar judgement, and they don’t except my dollar, is the bill considered as paid in full if they refuse the dollar?
No, that does not pay the bill.
I live in Pa and my only income is SSD and SSI. I am being sued by Capitalone for a credit card balance that there is no way I can pay. I told them when they called that I get less then $700 a month from SSD/SSI combined and there is no way that I can make payments anymore. I realize that I owe the debt but there is just no money to do it. I didn’t plan on getting sick when I used the cards. They didn’t want to hear it. Now they are taking me to court. I have no money but my SSD/SSI (about $8.00 at the end of the month), no property (I live with my daughter and granddaughter and give her most of my money for room and board), and nothing of value. I have a car, a 1992 Lumina, but it hasn’t been running in over 2 years and I can’t even afford to pay to have it junked! My disability will never get better, only worse so the only way my income will ever go up is if I get a cost of living increase. Should I even go to the hearing because my daughter would have to take the day off from work to take me. I can’t drive anymore. Can they freeze my bank account? I don’t get much but I need it to live on. I am in a really bad place.
Call and talk to the people at HELPS. You can watch the video interview I did with the Director of that organization in the above article. Follow their advice.
My wife and I are considered collection proof in Maine because we are both on social security disability. We both have credit card bills which have been sold to collection agencies and placed under collections on credit bureaus. We stopped paying on the cards 3 years ago. My wife and I have to travel 223 miles one way to see doctors to treat our conditions. My wife will be getting a medical damage award from a vaginal mesh settlement and we plan on paying down part of our home loans and putting the rest aside for traveling to doctors.. Can the collection agencies go after the damage award or would it be exempt from debt collectors?
You will want to talk to an attorney about any exemption that may apply to those funds. You can call Eric’s office, the attorney in the above video, and talk over your situation.
You only have to be concerned if they sue and get a judgment. It does not sound like that has happened.
Michael I am still on SSI disability, unfortunately I was just involved in a property dispute lawsuit with my neighbor and on 8/22/16 the judge ruled in favor of the neighbor ,so now I have a judgement against me to remove rocks that border 161 foot of an easement. Also in the lawsuit its states that he (the neighbor) wants me to pay the legal fees if he wins. These fees could be around 15 grand. I couldn’t afford a lawyer but did have a one time consultation with a real estate attorney. The attorney told me that in most cases the judges in these types of lawsuits don’t require you to pay the plaintiffs legal fees. Lets say that he tells me I have to pay it when I get the paperwork on the judgement ,supposedly this week. I cant afford it , I still have not paid any 3 of my CC bills and I haven’ t been sued by them yet, I quit paying CC bills in May of 2016. I explained this to the plaintiffs attorney at the onset of the suit,but he said nothing. Please advise, I am in Idaho as you have helped me previously ,Thank you Kathleen
Post an update if the judge grants them the fees and we can go from there.
Hi Michael , The judge just made us move the posts and rocks back out of the easement to the required 30 feet, he did not say we had to pay anything in the judgement except move rocks and stakes. That has been done now as of this weekend. Today I got a letter from the neighbors attorney who represented him in the case and he is motioning for the fees and costs totaling $4,396.50, he also sent alot of other paperwork including a plaintiffs memorandum of fees and costs and a affidavit of attorneys support of motion for fees and costs. I am still on SSI disability ,my significant other works in carpentry but my bank account has nothing in it except for SSI ever since I have been on it.. He keeps his money separate. Please advise, Thank you Kathleen
I would run everything you have going on by an attorney of your own. You may be able to oppose effectively and save a good amount of money.
Okay, I have an appointment wed. with a lawyer that gives free seminars/advice at the courthouse once a month. I also just checked the way Idaho protects me from judgment creditors that you sent last yr:
75 percent of wages are protected.
$7,000.00 value in your car.
$100,000.00 equity in your home.
$7,500.00 value of your personal household stuff.
There is no exemption or protection for any amount of money in your bank account.
I feel at this point Im judgement proof or close to it. The only thing then that could happen would be a lien on my property if I have $100,000.00 equity correct? (I really don’t think I do )My significant other mainly works on a cash basis, I only have $140.00 in my bank account until I get paid again, it all gets used for bills that I already have to pay, house, utilities etc. Should I let the judge that ruled my case know I am on SSI? I am sending him photos of the rocks and stakes with measurements in the AM so he knows we followed the first judgement ruling. If you get a lien on the property is there interest attached that extends through the years ? I feel that even speaking to a lawyer is prohibitive ,we already spent one thousand on the consult lawyer and other filing fees, and we are trying to recover from that and get ready for winter up here., so hopefully the lawyer at the seminar can help me. The person who signed me up for the consult said he does real estate law. Any advice is greatly appreciated. Thank you again! Kathleen
Judgment interest is capped by state law. The court will set that.
You have a grip on everything for the most part. I would just want to oppose the motion for fees. I am glad you found a resource for some help. Let me know what comes of all of it.
Thank you ,and I will keep you posted.
Michael, this morning I contacted the judges clerk and I told her that I want to oppose the motion for fees and costs, I then asked her how many days I had left to file,as the papers I recieved yesterday were dated 09/08/16. She said she couldnt by law give me that answer, then another clerk at the recorders office said there is a specific form online for that. I really just want to handwrite an oppostion letter and take it down there to be recorded today ! I feel this way because the judge held up one of my handwritten letters during the hearing that he felt was appropriate . we had alot of other photos and typewritten notes as well. Even though we lost the case the judge at the end stated that “this case is dismissed with prejudice. I feel like I just want to take care of this today , or should I wait for the seminar?
If it were me I would wait to meet the attorney.
Yes that is what I will do !
Michael , guess what ! now Im back to square one. The attorney at the seminar is the attorney that is suing me, so I couldn’t speak to him, I didn’t recognize him at first but when they said his name I had to leave because of conflicted interests. I felt really frustrated and drove back home and left a message at another attorneys office that they use for referrals ,but they wont get back for 1-2 days. So I decided to take a chance and call another attorney I consulted a few months ago ,(but is very expensive) because I was stressing over the time frame of when I should reply to the motion and oppose the motion for fees. He spoke with me and really scared me, he said that if im on SSI and cant pay for the fees they can put a lien on my house and sell it to get the payment ! He said he wasn’t sure how many days I had to get back with a letter of opposition,either 8 or 14 , I asked if he would file the letter for me and he said it is $1,500 cash or CC which I don’t have. After that I was beside myself! I then called the judges clerk and asked her that time frame question (again) and she yelled at me, ,your attorney should be telling you that and you can talk to the judge at the hearing about it! She said they will send me a notice about the hearing. I also told the lawyer that only my name was on the house and he said something about then one exemption. He also led me to believe that the judgement on the lawyers fees would be automatic ,which I am glad that the judges clerk clarified for me, She was just upset with the attorney! There are people at the courthouse that help you represent yourself ,but I am afraid to do it because it failed the first time with this lawsuit. I am going to talk to another lawyer but what the one said today really concerns me, the plaintiff in this case is very vindictive. Doesn’t the homestead law in Idaho protect homeowners from this happening? My 2016 tax notice says: $144,473.00 current subtotal, $70,537.00 less exemption, $73,936.00 net taxable property value. Thank you Kathleen
If you do not have an attorney do your best with the judge.
Homestead laws do not prevent judgments.
One of the CRN counselors up here in Bonner county had a dispute with a neighbor about a dock, and access to it. There was no love loss between he and his neighbor. The dispute wound down to its conclusion and his adversary motioned for fees and costs. The judge denied. I hope that is the outcome for you too!
Thank you for your response !, I just returned from the courthouse today and filed my form, a generic form that I found online under Forms -Individual forms and instructions state of Idaho. I printed up the generic motion form filled it out to the best of my ability stating that I oppose paying the fees and gave reasons why. Hopefully the judge will grant my plea., Today is the 8th day since my neighbor filed that motion for fees and I hope I got it in before a default can occur! I also mailed his attorney and the judge the notarized copies. You are the only one that suggested that I oppose the motion , so that is why I am doing this, it makes sense. I also contacted Idaho bar assoc and I have an appointment for a free consult with another lawyer this Tues, its the earliest I could even get in to see anyone, but I am just taking the bull by the horns and praying this works! I will keep you posted!
My Stepdad is on Social Security and had to stop paying on Discover card fixed Income, he lives in a Apt. has no assets but a Car can they take the car? Or Garnish Social Security? He is in NC. And Illinois
He would only be from one place for those collection purposes. His social security is protected. The car value is protected up to $3500 in North Carolina, with up to an additional 5k value added on if no homestead exemption taken.
Illinois only offers up to $2400 car value protection.
My daughter is being sued for back Condo fees. She has not been able to work for over 5 years due to addiction problems. Con she remain in her condo…until she gets into Rehab?
You will want to talk this over with an experienced foreclosure defense attorney in your state. I can email you a list if you like? Post the name of the state she lives in.
My wife and are about to be retired! Our net income will be reduced from $12,700 net monthly to
$ 6,600 net monthly which will be composed of our State of Texas Employees Retirement annuities and my social security, totaling $6,600 month. Our monthly bills exceed this number by $6,000, mostly on credit card debt.
At this point, we have about 3 months to make major financial decisions. We live on 23 acres with a few cows and horses, and raise grass and hay for our animals which is not self sustaining, but saves property taxes by exemption. We need/want to continue the farm/ranch operation as long as possible.
Thank you,. .
Do you recommend Debt Consolidation or Bankruptcy
.
I would encourage you to speak with a bankruptcy professional about whether you can qualify for chapter 7. If you cannot, or it would cause you to have to sell some non exempt assets, that would mean chapter 13. Settling your debt, if you can do so in a quick enough period of time, is often better than a chapter 13.
I am assuming you mean negotiating and settling for less than you owe and not debt consolidation by lowering your monthly payments.
I live in the state of Ohio and only have social security and pension going into my checking account. I was wondering if I stopped paying on my credit cards, if they could do anything. I am buying on a house and also wondered if they could put a lean on my house. I am 72 years old. My credit cards are as follows:
Target – $616.91 – payment $25.00
.Capital One – $2632.02 Mastercard – payment $79.00
Capital One – $2429.85 Visa – payment $71.00
Prosper – $4948.30 – personal loan – payment $195.75
Citi – $1673.89 – payment $27.22
Amazon – $300.71 – payment $25.00
They would have to sue you and get a judgment before you have to worry about any extra ordinary collection activity. Your social security would be protected, and pensions are at the source. Check with an experienced collection defense attorney in Ohio about your pension.
I am concerned about your buying a home. If sued, a judgment could result in a lien on your home.
I have a loan with One Main Financial. My payments we’re always on time until Oct. of 2015 when my daughter was diagnosed with Diffuse Scleroderma forcing me to leave my job to take care of her.I tried to keep up with my payments but it proved to be too much after I started receiving only SS benefits.They would not accept anything but full payment so I stopped dealing with them.Can they sue me here in SC for my benefits? I have no other assets.
Your SSI benefits are protected.
I borrowed $45,000 from my mom’ s unsecured credit cards. She is going to be 95 in Nov. She only makes $936.00 and has had a stroke and is has alshierers etc. I do have power of attorney.
I am going through a bankruptcy court with the highest amount in $70.0000 in gambling and $45,00 on an secured credit. I am retired TRS and receive $26,000/year. I do an IRAUl which is shielded by the gov in 2005.
I need to know what to do with my mom’s debt first. What can you offer me for support?
I would encourage you to talk to your bankruptcy attorney about your mom filing as well. There may be issues with creditors filing for adversarial proceedings if there were recent cash advances, but shedding as much of the 45k as possible will help.
If she owns property in excess of your states home equity exemption it can complicate the chapter 7 a bit, but get a better understanding of that with your attorney.
My spouse crashed my new car and was not insured. The insurance company excluded him with my knowledge. I receive SS benefits and a pension from cal pers . I live in Oregon. Can the seize my benefits if I don’t pay?
Your benefits are not at risk from the source. In other words, if sued and a judgment placed against you, the judgment creditor could not go to the Social Security Administration and attach or garnish your benefits. Calpers would similarly protect you I believe.
It is when the money is in your bank account that you need to be concerned. Which is why I recommend only keeping exempt funds in your bank account, and do not allow a few months to build up in reserve in the account.
I have older friend in her 70’s that wants to move to Oregon from Alabama. She has no family. Her income is limited to social security and small pension check. She has a home but is it in need of repair and remodeling to sell. The amount she owes is almost the value of the house. Also, she has credit debt. In reality she does not have the finances or energy to do anything with the house. Her goal is to move and finish her days out living her dream. I don’t know what advice to give her. If she should just let the house go.
It does not sound like she has the resources to prepare the house for sale. I would get a broker and appraiser out to give her an accurate quote on what the home would sell for as is. I would make my decision based on the outcome of that. If the house would have to be sold short than I would start my transition now. If I could walk away with a small, but tidy sum, I would work through the sale normally.
I have an divorce attorney who has withdrawn from representing me. He is demanding to be paid six thousand eight hundred dollars. He lost the case against my husband. The only income I have is social security and alimony. I live in North Carolina and need to know if he sues me will he be able to access that money. I own no property other than a 13 year old car. I rent where I live. He has already been paid eight thousand dollars. He asked for $4000 up front or in $200 a month. I cannot afford that so he said he would accept 100 a month for the sixty eight hundred dollars. What would happen if he took me to court for what ever reason. I cannot afford to hire an attorney and my husband and I declared bankruptcy, chapter 7 four years ago. I am 72 years old
I am not certain if your alimony is protected, but your social security is. If the alimony is not protected, and you kept none of it in your bank account, there is little he could do to collect from you based on what you shared.
What do i tell debt collector (credit card) to stop legal civil court action. with my inability to pay.I am on total disability. Thanks
There is only one creditor or debt collector I know that will drop a lawsuit and all collections when you show you are no asset with fixed income, and that is a debt buyer by the name of Midland Funding. There is really nothing I can encourage you to say to get a lawsuit dropped (just because you are unable to pay) if its been started.
Hi Michael. I live I. Ohio. I am I. Credit card debt (3 cards) for about 16k. I have been paying every month about $350. My only income is social security. I have a mortgage and my car is 11 years old. I have no other assets and do not work in order to care for my grandchildren while my daughter and son in law are at work.
I have. Retirement account with $23k left. I’m having to use this money frequently to survive. I pay all my bills as soon as my check comes and can barely feed myself by the end of the month. My SS check is $1500 per month. Can you please advise me. I’ve been thinking of just not paying them anymore because of the cost of Chapter 7. Please help!! Karen R.
I would save up and file the chapter 7 if it were me. Knowing that, I would not make payments on my cards. Talk with a bankruptcy attorney about this. You may qualify for low income legal aid, and that would bring down the cost a little. Worst case you are looking at maybe $1,500 for the whole bankrutpcy from state to finish. You will have that saved up in 5 months.
You could also stop paying and let the cards fall where they may. But depending on who you owe, you could be sued, and I would hate for this to get that far and upset your situation. Having said that, you could go a long time without having to file. or perhaps never be sued.
You need some thick skin to weather the collection storm, but it is doable, and more so when you are prepared and cannot be taken off guard.
I owe approximately $8600 in unsecured debt. My only source of income in Social Security and Pension provided by NYS retirement fund.
My house is valued at about $65,500 and is owned by myself and my niece and her husband. The company has threatened garnishment and a lien on the property.
Can they do that? I live in New York State.
Thanks
They could not garnish social security, and it is highly unlikely the state pension system would allow a direct garnishment either, but call your plan manager and double check.
A judgment against you could end up with a lien on property. Your situation is complicated by the other owners of the property. Talk to a debt collection defense attorney in New York about your rights with a judgment creditor. I can email you a list of attorneys that I know have the experience you need if you like?
Who is the collector threatening all of this? There are fakes and scams out there that you have to be wary of. They use info from your credit reports and come off highly credible, but they are not. I want to be sure that is not what is happening here.
I have a credit judgment against me that is now in collection. I am currently on Social Security and a small pension. Is the Plaintiff able to collect my Social Security and Pension for the debt? I’m in California.
Your social security is protected, and many pensions are too. What you want to be careful of is having those sources of exempt funds mingled in with nonexempt funds in your bank account. And you also want to be careful not to have months worth of social security money built up in reserve in your bank account.
This is the only income that is deposited at set times. I then use the funds to pay bills and other expenses for the month. I have approx. $1,400.00 in savings for emergency purposes. The debt is a personal bank loan the balance due $8,251.00. I haven’t been offered a payment plan. Do you think I could get a payment plan that won’t leave me struggling? I only get approx. $1,900. monthly.
Thank you for your response.
Hello, i live in north carolina and paying on something that came from new jeresy, if for some reason i cant keep paying an it goes to a third party collection, what all will an can happen?
Thanks
What type of debt is it that you are paying, and who to?
I will be 75 in December of this year., I have a collection agency from mass. saying that they are going to put a judgement on me for a debt i have owed for over 7 years now. I live in N.H. have lived here all my life. My only income is social security I have nothing except a car my brother left me when he passed away. I have to use that to get to my Dr. appointments etc. the car is worth probably 5,000. it is free and clear except for repairs and gas. I live in senior housing and am on Hud for help. My question is can they make me pay this debt? and what happens when i get that judgement in the mail?
From the sounds of it they will not be able to force collection. With a debt this old, and the threat of getting a judgment against you, I am concerned you may be dealing with a debt collection scam.
What is the name of the collection agency?
FBCS
330 Warminster rd.
Hatboro, pa 19040
this is who i have been told to pay the money to.
FBCS threatening you with a judgment would mean they have to sue first. The SOL in New Hampshire is 3 years. Your rights may have been violated. I would like to email you some contact details to attorneys with FDCPA violation experience that you can contact and consult with at no cost. Many will take a situation like this and represent you at no cost too.
Would you like me to send that email to you?
yes i would like that so i can get them off my back.. thank you for your information
Hi Michael,
Nice article. I am currently in a bind. I have checked my credit and it dropped just into the poor numbers because of a $380 medical bill for scans. I am living on a Native American reservation and if we have insurance, we can go off the reservation and within 3 days of the hospital visit/stay, we give notification to Indian Health Service ‘s Contract Health who covers the balance after personal insurance pays its part. One night I went to the ER on the reservation, I was in excruciating pain. I was told there were 2 people being flown out and 3 ambulances that brought people so it would be a long wait. So I drove to the nearest non-Native hospital 20 miles away. I was diagnosed with gallstones & released. Next day I notified Contract Health. Fast forward a few months later. I recently checked and my credit dropped from lower good to the upper poor rating because they didn’t pay their part. Can I even dispute it or what do I need to do? I did my part, I paid my insurance and notified the very next day (within the 3 day rule). A different problem on my credit is, my husband and I traded in a vehicle and he got as far as 3000 left in it when he had a freak massive stroke at 39 yo. I notified the bank of his condition and I paid as often as I could because he was hospitalized from Dec 2012 to end of July 2013. We both lost our income and he used up leave. I kept telling the bank until luckily, someone donated leave and it was enough to pay off his truck, which I did immediately. Now that truck is reported as 120+ days or more past due in the bank’s comments of my credit report. I tried to notify that we had hardship. Can that be helped. Thanks so much for any advice!
Is the issue with IHS in the last year? Have you kept at them to get them to pay or to inform you of why they have not and/or will not pay? What was the response?
The truck payment being late is accurate reporting. Your best bet is to send a good will request to the bank explaining the situation at the time and ask if they will remove the late pays. Good will requests to fix your credit are not all that successful, but worth a stamp.
Do you have any immediate credit goals you are trying to accomplish?
Hi. Thanks so much for your reply. As of last year, IHS has since turned into a privately rin by the tribe hospital. I took my bills to them but they were in a process of moving to a new location. This past December, I got a call from them to get a copy of my insurance card. She told me they lost some info on the transit. I have her a copy. I did explain my husband was hospitalized to the original bank about the truck. So I will try your suggestion.
We don’t have any immediate needs, I’m just now trying to move on since the stroke. I began to realize how much our credit can affect us.
Hi Michael,
My husband had a car loan in which I cosigned for. The car was repossessed back in 2008. According to the debt collector I was listed as a borrower, not a cosigner. My husband is now deceased and I’m paying on the debt of 200 a month. The amount was ok as i was working. I’m not working now but collecting social security survivor benefits along with benefits for my daughter. I contacted the company about 2 weeks ago for an updated statement. The person on the phone stated the address that they had listed was a bad address. I asked him what address did he have and he stated my correct address. As of date, I have not received a letter. I’m wondering if I should still continue to pay this debt. By the way, I live in New Jersey.
Thanks
What is the name of the finance company you are dealing with?
Is your financial situation such that you can continue to pay, or is the payment out of reach?
With the limited income, and the source of funds, you may be what is often referred to as uncollectable. See this post about exempt income from social security.
The account is now with a collection agency called Praxis Financial Solutions. The original creditor was Mainstreet/Citifinancial.
If the payments are creating a hardship I would not continue to make them if it were me. Your income is protected from creditors like this, even if they were to sue and get a judgment.
If you stop paying out of necessity, and your finances improve later on, you could circle back and settle with Praxis Financial Solutions for less than what is still owed.
Michael,
I am the caretaker of my 80 year old Mom who has dementia and we live in Alabama. I recently was served papers from Midland Funding, who are suing my mom for debt owed to Citibank in the amount of $7846. Her only income is social security in the amount of $2150 monthly. She owns a home that is about to be sold (closing next week) and owns no other assets. She lives with me as of two years ago so I could better take care of her needs. I have contacted Midland Funding to send the Power of Attorney so they would speak with me about this suit, but now I am not sure how much information to give to them. I know she is no danger of them attaching her ss income, but what about the home? Are there any other issues I should be aware of before speaking to Midland? Thanks in advance.
I have not covered Alabama in the comments yet, so let me get to that first.
Alabama allows for up to 25% for wage garnishment.
The 3k exemption for an automobile in Alabama also must cover household goods and tools (not great protection at all).
Only 5k of home equity is protected.
Cash in bank accounts in Alabama must also be covered by that 3k wild card that already has to cover so much.
Alabama is ungood for consumer protections when it comes to collections 🙁
The sale was in motion and is going to close. If it were me I would file an answer to defend the suit and buy time to negotiate the outcome. If you were dealing directly with Midland Funding to settle my feedback would be more straight forward. Now that an attorney and the courts are involved it is often a good idea to connect with your own attorney in order to respond in court. That said, if you have resources now to fund a 50% settlement, you may be able to negotiate that now with the attorney for Midland.
Can you raise the money needed to settle without waiting for the home to close?
Wow about Alabama….Unfortunately, no, as far as raising funds. Her social security barely covers her medical needs at this time. This was the main reason why I had to stop paying her debt. Once it closes, can they still attach a lien if they do win a judgment? I wished I had been getting the collection letters, but I did not get anything until the lawsuit was filed and they found my address. So I will try and buy some time and hopefully the sale will close as scheduled next week. I really would like to put the proceeds from the sale of her home in an account to help pay her medical costs for however long she has left, but sounds like to me in the state of Alabama I might not get that option.
It does sound like you can settle the account with proceeds from the sale though. If everything goes through on schedule, you could start negotiating now. But these things have away of being delayed, so if it were me, I would file a general denial with the court and then circle back to negotiate a settlement for less when I have cash in hand.
As long as there is no judgment in the court record, her bank account is safe.
Thanks so much for your help.
Sorry- for some reason I didn’t see my original answer, so I answered twice. 🙂
I deleted the duplicate. The system held the first comment attempt for moderation because you left you last name off. Your comments will go through either way now.
Hi Michael,
I live in TN and had been on Tenncare for many years. Back in January 2013 I was working and for some reason through Hrs my case worker wanted me to get health care through them which I could not afford so I stopped going to my doctor and off meds and ended up in the hospital a few times. I ended up on medical leave, applied for disability and in the meantime pleaded with my Hrs caseworker because I was on medical leave to put me back on Tenncare, they did. On one of the hospital visits I made the mistake of giving them $100 towards the bill. I only did this because I had tax return money. This was months before I was approved for Ssi also. Now I’m being sued and HAVE to go to court March 7 2016 (show of cause) didn’t go the first time because I just figured its a debt collector. My question is will the judge dismiss my case if I go to court and explain this and show that I only receive Ssi as my income?
Thanks,
Amanda
My experience would suggest no, the judge will not dismiss the collection case based on affordability. They may never be able to collect from you when your only source of money is exempt from judgment creditors, but the court is not there to determine all of that at this juncture.
I don’t understand. If Ssi is my only income, and they can’t garnish that. I wouldn’t be able to pay it. What does ” the court is not there to determine all of that at this juncture.” mean?
Currently the court is looking at whether you legitimately owe a debt and if a judgment should be granted against you. Income and affordability is not really under consideration pre judgment. You can talk about not being able to pay, and exempt income and assets, but that typically does not impact a courts decision on whether to enter judgment or not.
It is not until after a judgment is entered that exemptions and exclusions become meaningful.
I can’t afford to pay my credit card debts. I have a fixed income from the Veterans Administration and disability income. I have tried to stay afloat after my husband died in Oct 2013. I now used all my saving trying to stay above.
If i stop paying my credit cards and my home is paid in full and is in a Trust can they go after my home? I live in the state of Florida
I would also like to keep paying on my Car. Also If my American Express’s are all current will they leave them alone.
I thought I was getting a free answer, but I had to put $5.00 on my credit card and I didn’t like that. if you can credit it I’d appreciate it
A trust protects your home in many cases, but so does living in Florida.
Your car is not at risk if you are still making payments on it, as you do not own it yet.
AMEX will not bother you unless you fall behind with them… as far as collections go. But they do periodic reviews of their account holders credit reports, and may shut down your accounts, or lower your available limits, if they see you not paying other bills.
Hi Michael, I live in Marquette, MI and my husband, daughter and I were sued by a landlord. My husband and I were fully responsible for all bills and rent. He is only going after my daughter because she is over 18. We were evicted for having a cat, we always paid our rent on time and there was never any problem until he found out we had a cat. With that said we went to court and he was awarded $1300 in damages plus our deposit which was $1250. Now he did not produce any kind of evidence that he fixed the damages and the majority of them were there when we moved in. We offered to make payments of $20 a month and he declined. He is now taking us back to court, I am currently disabled and my husband and daughter are unemployed. We survive off of disability and child support for my younger daughter. My daughter has her own vehicle and I have my own. What right does he have to take against us and can they force us to pay if we have no income? Also doesn’t he have to produce proof that he repaired what he claims we destroyed? In the judgement he asked for a percentage of a bill that he did not pay and has the gas company coming after me.
The time for proofs was likely before the judgment was entered. The court is going to enforce a judgment at this point.
Your disability is exempt.
How much are the cars worth according to Kelly Blue Book?
I am not sure what to say about the gas company bill, but I would bring that up if you are appearing at an asset discovery hearing.
You want to appear at any court hearing at this point.
One of the cars is worth about 1500 and mine is brand new with payments on it. When we had our hearing he asked the judge then to make us disclose assets and the judge said no, file again after 21 days. He is requesting bank accounts, taxes and employment verification. I am not to concerned about my personal account but I do have a small business that run from home.
You want to comply with any court requirements here.
The car you are making payments on is off limits. The one worth 1500 is borderline.
I would need more information about the small business to offer feedback, but the less money it brings in, the less of a concern it will be. If the business is structured, like in an LLC or corporation, it has its own protections.
My mother is 64 years old and retired almost 2 years ago due to a medical condition. She lives in Central Florida and receives approx $700/month in SS payments. That is her only source of income. She has a vehicle that is paid off and worth about 8k. She short sold her home in Miami about two years ago, and moved near me where she now lives in a second home I own. She pays for the taxes (3.5k /year), insurance (700/ year), and monthly utilities on the home, but doesn’t pay any rent. I also give her spending money each month for watching my kids. She currently owes about 19k in credit card debt and is still current, but can no longer pay it since she retired. She has used the saving she did have to pay her monthly payments since retirement. She owes 10k to Chase (230 mo), 7k to Discover (160 mo), and 2k to Sears (40 mo). All cards are about 18-20% interest. She has no saving left to speak of, and about 10k in personal possessions in addition to her car.
I feel she is best served by no longer paying the credit cards and using that money to pay her living expenses. She is even afraid that when she turns 65 she will have to pay for Medicare which she can’t afford. What should she do.
I would encourage you and your mother to talk to a bankruptcy attorney about resolving the debts in a chapter 7.
If there is some reason to avoid the chapter 7, I would still advise my own mom to stop making her minimum payments. She cannot afford to, and there is little they can do to collect from her. If she is sued I would only be concerned about cash in her bank account that is not from an exempted source, which can be managed.
Hi Michael, its me again Kathleen in snowy idaho , and I mean snowy this year! Last time we communicated I was about to lose the travel trailer ,but we managed to barely keep it. So now the situation stands as follows : I am still on SSD, making my ends meet barely. My boyfriend works construction which was off and on all of 2015. The work market here is very sluggish. I signed the polaris snowplow/quad over in his name approx 6 months ago ,we really need that plow especially this yr! I have also had to have an unexpected tooth extraction which wasn’t covered by my ins and other dental issues. We keep the place at 65 degrees and its cold. I haven’t been able to pay the 3 credit cards Wells Fargo just keeps sending statements I am 5-6 months behind and owe $4,984.05, US Bank I owe $8,171.00 they sent it to united recovery systems for collection, and then discover I owe $5,991 and they sent me a note saying they were going to send my acct to an attorney if they don’t hear from me by 1/31/16. With his fluctuations in work and my ssd I cannot pay anyone! were broke! only reason we scraped to keep the trailer was because we don’t want a repo to deal with. Bankruptcy costs money. My plan is to just go to court and represent myself if Im sued by discover, which sounds very likely. My only question would be , if Im sued do I have to report my boyfriends meager income? we only share expenses. The home on 2.5 acres, my HHR and all credit cards mentioned are in my name only. I know you have already given me the list of exemptions for idaho which I have kept for reference, I am basically just giving you an update for comment……Thank you so much for all your help
Try to find a local paralegal that advertises they do bankruptcy paperwork. I have seen very reasonable fees for that type of assistance, and you do want the paperwork done right. There is also a decent book that NOLO Press puts out that is affordable.
Your bankruptcy trustee is going to consider household income. Whether or not your boyfriend would be considered part of the household I do not know, but I do find it likely.
I am 73 living in NJ 6 years I had a Citi Bank card My daughter used the card and didn’t pay me a dime.I am on SS I offered to make payments but they refused wanted it all.Fast forward Got a judgement against my pay. I just found out they took $1423 out of my checking acct. My SS is $1523 a mo. They denied saying they sent a letter to my employer. I have some serious health issues {lung disease} COPD I ONLY WORK PART TIME I don’t want to lose my home Should I file in small claims to get my money back?
You should file with the court and contest the any garnishment from wages and from your bank account. Do that ASAP and let me know how things progress.
Please help me. I live in Florida, am a 74 year old retired public school teacher (30 years), and my only income is the Florida Retirement pension each month and my Social Security each month. I own nothing, have no savings of any kind, and have no assets of any kind.
I am being sued by Bank of America for $8000 even though I filed for bankruptcy in 2015. Can they take my Florida Teacher Retirement? I am so worried, I cannot think straight because I could not possibly live without that retirement.
Appreciate any help!
The lawsuit may not be legitimate if the account was included in your bankruptcy. If the account was accidentally left out of your filing contact your bankruptcy attorney about what you can do about that.
I would also encourage you to talk with an experienced debt collection defense attorney in your state. I can send you am email with contact details to any I know of in your area if you post the name of a large city near you.
Thank you for your reply. I live in St. Augustine – Jacksonville would be the closest big city. I am so worried about the possibility of losing my pension, I am now sick. I had always heard that retirement pensions were like Social Security pensions – and since I have nothing else, I would be secure.
Now I have heard they can take retirement even if it is all I have.
Again, thank you for your help – it is appreciated very much and your calm advice is helping keep me calm too.
I sent you an email with contact details to different attorneys in the area. Call and confirm what your exposure to extraordinary judgment collection looks like.
Thank you so much!
Hi Any chance you will answer my question that I have asked twice now?
Your comments are not coming through for some reason. The site can be glitchy on it’s own, but I have also learned peoples browsers can be the problem (using an old version of IE for example).
Here is what you submitted via email:
“Hi Michael I am 62 yo female that has long story, to make short, lost job in 2013 had uneloyment for 8 months that’s it. I applied to over 100 jobs, worked in health care 38 years at pay scale. Still can’t get a job. I owed fed tax which they put me in “uncollectable”, and I receive survivor benefits from ex of $1150 a month. IRS knows this, they called me and put me in uncollectable. The state of Massachusetts I owe $750 in state tax I started paying $25 a month, but I can’t do it I run out of money and have no food or anything for up to a week sometimes 10 days, so I stopped paying. They sent me a letter and says they will attach my checking account, which I don’t have, SS goes on the debit card, can they just take my money? This is terrible worked my whole life and this happens to me at 59 can the state just take my money, I have just sent them a letter saying this. Can you advise me about anything I could do? Thank you so much.
My Reply:
The state cannot take your Social Security income. As soon as you get work, or even a part time income, I would look to tackle the debt with MA. You may continue to get threatening letters from the state, that is common even when they know you cannot pay, and they cannot force you to.
Thank You so much,for going out of your way and seeing that my question was answered,you are very good at your job,and excellent with the way. you treat people,again,Thank You.I am going to try and send $10 a month.
I am a 62 year old male in Pennsylvania with three judgements against me:
AMEX – $1810.00 on 03/2010
Discover – $5100.00 0n 12/2010
Capital One – $4700.00 on 12/2012 (They have since issued me a new card, to ostensibly rebuilt my credit).
I do not own a home (I have been behind in my rent for some years now, and I work part time for my landlord), and my car is with about $1200.00. With gainful employment so difficult to find, I filed for an early pension. Starting this month, $1390.00 is directly deposited into my checking account. Part of my early retirement agreement was a lump payment of $15,900. At my age I will probably never see a lump some of that kind again. I know it would be unethical to receive that money and not settle with my creditors. But I need ti salvage as much of it as I possibly I can.
Are my direct deposits safe form garnishment? What can I do with my lump sum check? I am scared to death to deposit it into my checking account.
Your direct deposits from the social security administration are exempt as long as you do not mingle funds from another source in with that money in your bank account.
I would cash that larger check if I were worried about a bank account levy (as you should be). You can settle those judgments for likely less than half given the hardship situation. Call me for a consult if you want to go into details on what that would look like. I can be reached at 800-939-8357, option 2.
My direct deposits are from a Federally recognized pension plan, not Social Security. So are those deposits safe? Since I don’t earn much in wages the average daily balance in that account is pretty low; the money (including my pension payments) comes in and then goes out to cover my monthly bills. It doesn’t appear that placing a levy on that account would benefit my creditors at the present time.
I don’t see how I could cash a check that large without first depositing it, wait for it to clear and then withdraw it. Can depositing a check that size, even if only for a week for it to clear, bring it to the attention of my creditors or to the court?
This may sound naive or paranoid, but are they monitoring my account for any large fluctuations in activity?
Check with a local consumer law attorney to be sure your pension type is exempt.
Cashing a check that size can often be done at the issuing bank.
Debt collectors are not watching your bank account… they cannot do that in the way you are thinking. A judgment creditor has to get permission from the court to levy or freeze a bank account. That permission is typically good for a day. They tend to do these at the beginning and end of month in my experience.
I will check with a consumer law attorney.
I have been under the impression that wages in the state of PA are exempt from judgements.
Unfortunately the issuing bank is in California; I’m in PA.
I have a 30 year old savings account with a credit union that I never use. The balance is low, barely enough to maintain it. I have never listed on any forms because I never considered to be an asset. Do you think that account is on their radar as well?
Hello Michael, we live in Virginia my Mom has unsecured credit card debt and we are entering into a debt consolidation program. to negotiate settlement or lower payments. My father just passed away last year and some debt is in his name only and some are joint. She is on SS and his pension for income but does have some cash, her home, and several vehicles. Our question is, if we settle for lower payments, a settlement, or if they are in his name only write-offs, can the creditors seize any of her assets? The house is in both names (right of survivorship), cars are some in both some in just his name, and money in her name.
None of the debt is extremely past due at this time and there are no judgments. We want to keep that way.
Give me a call for a phone consult Cheryl. I can be reached at 800-939-8357, option 2. I am on the phone a lot so be sure to leave a message if you must and I will return the call.
I am disabled and live in NY. I am collecting SSD. I was filing claims with an accident only insurer and they were sending checks to cover those accidents for years. I was paying my credit cards with that money. the SSD was used to cover very basic living expenses. nothing was left over, not even for food. after many years, the insurance company stopped sending checks for nearly 2 years and all my credit accounts went into default. I own a home and continue to pay mortgage. I own a car and continue to make monthly payments. I also have debt with government agencies that continue to get paid (those were all getting paid from SSD). the insurance checks were deposited to a separate account and used mainly for food, credit card bills and things not affordable with SSD income. I suddenly got checks from the insurance company after 2 years, after all the credit cards were defaulted and closed. those checks came, just prior to filing a chapter 7, and then some more checks came post filing. those funds I had believed were not considered income and weren’t listed on the chapter 7 paperwork. my debts were discharged but then the company notified the court of those checks they sent (apparently they were keeping an eye on my credit report and saw that I declared bankruptcy). I just got a notice that the court wants to reverse the discharge because of that new information received from the company. I am mainly concerned about the house and car, which are essential to my survival. my second concern is: although I realize the SSD income can’t be touched, I am concerned about the account where I deposit the insurance checks (which don’t come to me often, but if I do get any checks from them, how much of that money can be kept in a bank account ? that money isn’t protected like SSD. I live in NY.
Is my house exempt , and is my car exempt from confiscation by creditors and how much money can be kept in an account without having it confiscated
Have you connected with your bankruptcy attorney about your options?
If your bankruptcy is unwound your creditors would first have to sue, and get a judgment, before you would worry about extra ordinary collection options they have. You have some protections from collectors that include:
New York protects 90 percent of wages earned in the last 2 months.
Up to $4,000 of your cars value.
In New York, your homes protection is different by county. Up to 150k can be protected in some counties.
All household stuff is safe from judgment creditors.
New York protects up to 1,740 dollars in your bank account, with 1k more than that if no homestead exemption is taken.
Hi Michael,
I have a judgement in New Jersey, Essex County from Midland Funding for Home depot for approx. $2,100.00
I now have Pressler and Pressler coming after me via an Information Subpoena.
My only income is Social Security Disability and NJ Teachers Pension (regular Disability retirement option).
I have both automatically deposited into my checking account monthly.
I have sent P&P my rewards letters for both SS and Pension, stating they are both exempt and that they should not try and collect exempt income.
Is the the correct way to handle this?
I have a house in foreclosure, an investment property with about 20,000 in equity, a 1999 car, (mercedes in bad condition), and household goods not worth very much.
Am I protected? What advise can you give me.
Thank you very much, for all that you do to help people.
If it were not for the 20k in equity in the rental, you could probably qualify for Midland hardship guidelines (where they leave you alone as far as trying to collect.
You can scroll up to my response to Eyelene from July 11 2014 and see the major exemptions listed for New Jersey.
Your investment property makes you look more collection worthy than you really are. Can you pull together 50% of that you owe if they were wiling to settle the Midland Funding account for that?
Thanks Michael.
I don’t have no money to settle.
The rent I receive just covers the mortgage and expenses in the investment property. My main residence is upside down and in foreclosure. My credit isn’t good enough to get an equity loan and I’m not selling the property. Will they just put a lien on the rental?
Thanks
You could end up with a lien on the property. You can always look to circle back and settle with Pressler and Pressler when you have some cash to work with.
Ok. my last concern is Pressler getting a levy on my Bank Account. Can they still do this even though all money in there is from exempt income?
Thanks
Years ago I would see judgment creditors levy bank accounts that only have exempt funds in them fairly often. Nowadays I rarely hear of it. Banks are protecting their account holders from this better than ever before.
I do not see a bank levy as much risk, but do not mingle any funds in your account that are not from an exempt source.
Thank you very much, Michael
Dear Mr. Bovee,
My father has a credit card debt he can’t pay, he is 65 years old and now lives on his social security which is like $500 a month, and has a condo which he has equity of about $50,000 if he sold it, but a debt collector is taking him to court for $7500, my dad lives in Virginia and he is out of the country for medical reason, what can I do, and can they take his house, he has no money in the bank the Social security is deposited in to my account and I pay some of his bills, the court date in a month, any advice on what I can do, so he doesn’t lose his house.
Thank you
First things first… when was he supposed to have been served the lawsuit? Was he out of the country at that time?
Virginia has terrible protections from judgment debt collectors for home equity. It is only 5k with the potential to double that for some elders. I am not saying a judgment creditor would start an involuntary action to force the sale, but they would file a lien after the judgment.
Who is the creditor/collector suing him?
Hello, i live in sc and got myself into credit card debt with first citizens. It’s almost at 15,000 and i am unable to make the payments. The card is in my name only and i am paying on my wife’s car and mortgage payments also. What is the worse that will happen if I stop paying on it?I have another credit card that I am trying to pay off. That one is at 7000. Thank you
Wages are exempt from garnishment in South Carolina. If you were sued and a judgment entered against you, further protections from collector could include:
Up to $5,625.00 of value in your vehicle (with another $5625 potential exemption added to that as an unused wildcard).
Only $56,150.00 of home equity is protected from judgment creditors in SC.
$4,500 worth of your household goods are protected, with some additional value possible from other unused exemptions.
You have an ability to claim $5,625 as a protected cash asset if you do not claim a homestead exemption. That appears to be shared with your vehicle and household goods exemption.
Do you have the ability to save up to settle the debt for less than what is owed after you have stopped making payments for some time? Have you looked into chapter 7 bankruptcy?
If I stopped paying I would be able to save 500/ month. I own a car that is payed off with the blue book value at 4000 and my wifes car is in her name only and still making payments, we purchased it about 2 years ago. I have not looked into chapter 7. I bought the house for 140 k and still owe 125 k. Can they go after the car in my wife’s name as well?
You would be able to save up and settle inside of a 12 month period, and that means you could avoid the risk of being sued that would put you at risk. You will want to save up even more than 500 dollars whenever possible (tax refund for example) in order to get this done even quicker. If you are sued you could file bankruptcy.
Your car and home appear to be protected in a chapter 7 bankruptcy (or if there were a judgment against you), and your wife would be able to reconfirm her car loan and keep it in a chapter 7. Her car is not at risk from debt collectors.
Thank you for your help. I think I will take a hit on my credit report and save the 500 and wait until I get a notice from collections about paying half? Is that how it works? Also should i transfer banks due to it being their card?
Yes and no. Settling with an original creditor like Citizens bank is different than settling with a debt collection company. I have an article series about settling with your bank.
Settling with a debt collector is more straight forward, and I cover all the generalities here: https://consumerrecoverynetwork.com/question/settling-charged-off-credit-card-debts-with-collection-company/
I do prefer you switch banks if you are dealing with the same one you will settle with.
Thank you for your help, where can I find good information about settling with my bank?
I am obviously a bit bias, but many people refer to this site as being one of the better resources for information about settling your debts at all stages of collection.
My prior comment replies to you contained clickable links.I highly recommend you read through the articles and formulate your strategy from there. If you want help after that you can call me at 800-939-8357, choose option 2 to get to my desk.
unless I receive a transplant. I simply have no resources to pay this debt.
When I received the summons, I responded to the magistrate that I will be contesting the suit, which pushed the date back a little.
Is there a chance going before the magistrate and explaining my situation will have this debt forgiven? Since disability is my only source of income, what do I have to tell my bank to prevent a levy on that money?
April – Call me for quick phone consult about your issue. I can be reached at 800-939-8357, choose option 2 which rings to me.
My wife has a Summary Judgment for $6,500 ++ on an alleged credit debt which was bought by CACH, LLC. from Bank of America,
The judge just asked my wife if she wanted to settle for $4,000, to which she responded that it was not her account.
All the plaintiff was able to provide was 7 monthly statements with accruing interest and penalties; no proof that she ever used the card, etc.
Anyway, be that as it may. The question is; she does not work, she does not have a bank account and the house is in my name only.
We are in the state of New York. Can they come against the house or contents of the house (car is leased) or do anything with a joint tax return.
Thanx!
New York protects you from judgment creditors in the following ways:
90 percent of wages are protected from garnishment in New York.
The value of your car is protected by up to $4,000.
Your home equity judgment exemption in New York can vary significantly by county (between 75k and 150k).
All household furniture, stove, fridge, and many other items are protected.
$1,740.00 cash in your bank account is protected, with an additional 1k possible if you do not use a homestead exemption.
They would not be able to touch your tax refund for this type of debt.
Hi M…..I have about 30,000 in credit card card debt from money I borrowed off of cards for lawyers after a not so healthy divorce here in New York..my credit was impeccable till then ….these debts are over 10 years old..I am on disibility collecting social security and pension checks and have been doing so for 10 years…the car was bought under my dads name ,something he insisted on doing,who now sadly has passed away 2 years ago…I am an insured on the car but was wondering what the credit card co’s rights are if we put the car under my name… I have not been bothered in a long time by mail or phone & one has written it off….the car is paid off in 3 years..it would completely ruin and devistate me if they somehow they took the car…..Thank you sir very much for any help and info that you can lend…
Were you ever sued on any of the debts?
Can you confirm that the last payment on any of the credit cards was more than 6 years ago?
Hello please help me with some info if possible…
my mother is 66 years old, lives in California and gets disability…she had debt 3 years ago, we offered settlement for all but only some accepted which they got paid. But now one of the ones that denied the settlement is taking her to court. She has no property, no car, nothing to her name. She rents and has no other income coming into her bank account. What is the worse thing that can happen at court, or ordered by the judge?
Typically, the worst thing to happen is a judgment is entered in the court record, and shortly after that on her credit reports. The court grants judgment creditors extra ordinary collection options when there is a judgment in place. I cover California judgment protections above.
With no assets, and the only income going into her bank account being from a protected source, there is little the debt collector can do to get paid. They may occasionally contact her to collect on the judgment, but unless her situation changes, the debt collectors will be wasting their time.
Who is the creditor that was unwilling to settle? Is that who is taking her to court, or is the named plaintiff different than her original bank?
Sorry for the delay…the original company is US bank & the amount + fees is $3477. ,
However, the plaintiff is Portfolio Recovery Associates LLC and they are taking her to court…they require 30 days written notice…limited civil…etc etc…
What action should we take? Or should we ignore it?
I have had an experience with both US Bank and PFR. I defaulted on a Credit Union credit card and PFR tired to collect. I stupidly ignored it and end up facing Howard Schiff law firm in mediation. Unfortunately, I had no funds to work out a settlement so I am now paying them $50 a month until I can get into a better position to settle it,
It is best to talk over your options with an experienced debt collection defense attorney in these situations.
Your options include:
File an answer and defend the case to dismissal.
File an answer but with the goal of getting the extra time you need to settle with PRA (her situation is one I see them settling for 50%).
Do nothing and they get the judgment. When they call and write you could respond with her financial situation and that she is judgment proof. You may get occasional asset discovery questions in the mail.
What are you inclined to do?
Thank you for the reply…
we can’t offer any more cash settlement, we did the best we could & offered settlement to all of her creditors 2 years ago, total of 5, of which only 3 agreed and got paid.
We don’t care if her credit is bad now, she is not using her credit & has nothing to her name.
If we wait and hear from them, we’ll write the letter explaining that her income is only disability assistance & hope that would do it….
But if we don’t hear from them by letter and get a court date instead is there a special form of paper to write, or would the judge put in the judgment anyway…in which case is that going to affect her? Besides staining her credit report, which would not bother us…
When you mentioned about the judgment proof letter, is there a sample I could follow?…can I write to the plaintiff this letter asap? Or should I wait for them to contact first….
Thanks a heap for replying….
A letter outlining her inability to pay now, or going forward, and that speaks to there being no assets and a fixed income, can be as short as I just made it. I would prefer that kind of thing to be part of the court record, sent to the attorney for PRA, and to Portfolio Recovery Associates too.
PRA does not care that they will never get paid on this. But it is good to notify everyone of the situation.
If you do not deny the claim in some way, there will likely be a judgment. Based on what you shared about her situation, the only risk will be to her bank account, but if she only keeps SSI money in there, it should be safe. Do not let money accumulate in the account.
I am asking advice for my Dad. He is 79, he will be 80 on 11/24. Up until August of this year his income consisted of SS & part time work as a rural paper carrier. He suffered a stroke in August and was hospitalized for 2 & 1/2 months. The stroke affected his speech & he still has limited speech at this point. He is home now but needless to say he lost his part time job due to the stroke. He has a little over 17k in credit card debt & had a new car but we have completed the paperwork to surrender it back to the dealership. We visited a local bankruptcy attorney to see what options were available to him. To file a Chapter 7, he would have to pay 1500. up front with the possibility of losing his home. Chapter 7 would be a monthly payment of 125. for 3 years.
I really don’t know what would be the best options for him at this point. He is receiving a lot of phone calls from the creditors. He lives in Louisiana.
Since he cannot afford to file bankruptcy, if he does nothing, what will his creditors do?
Creditors and debt collectors will make collection calls and send notices in the mail. That is manageable for the most part. There is the risk that he is sued for collection. If bankruptcy would cause him to lose the house, he may be able to just react to any collections that become aggressive. If he receives a collection notice from an in state attorney, it would be a good time to consider options to handle that specific debt. I can talk to you more about that in a phone consult if you like. Call 800-939-8357, choose option 2.
If a creditor was to sue your father and get a judgment, Louisiana protects him from certain collection actions.
75% of his wages would be protected from garnishment.
Louisiana protects up to $7,500 in vehicle value.
$35,000 of home equity is protected from judgment creditors in LA.
All necessary household items are protected in LA.
Louisiana does not protect any amount of cash on deposit in your bank account. But, as you know, there are exempt sources that cannot be touched in his bank account (when no other money is mingled in), such as social security payments.