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
Short answer
Your social security income cannot be garnished at the source, and most pensions are exempt from garnishment too. A collector would first have to sue you and get a judgment entered in court. The risk that is left after that is a bank levy, on the money once it is sitting in your bank account.
Key points on this page
- Social security cannot be garnished at the source. Most pensions are exempt from garnishment as well.
- Nothing can reach your money until a creditor sues you and a judgment is entered in court.
- The remaining exposure is a bank levy, because the funds lose their protection in the eyes of a collector once they are on deposit.
- What a judgment creditor can reach, meaning bank funds, wages, personal property and a car, is set by your state exemption laws. The amount of protection you have may surprise you.
- Before it goes that far, weigh the alternatives: a lower fixed payment through credit counseling if about 2 percent of your combined balances is affordable, settling for less if you can pool roughly half your balances within 36 months, or chapter 7, which can cost under 2,000 dollars and removes the risk of suit, levy, garnishment and liens.
- Some people on a protected fixed income stop paying and accept whatever comes, because their income and property are already exempt. HELPS assists seniors and people receiving disability or VA benefits.
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.
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.