Collections

I don't understand how I will fix my life. Even when I feel good I have collection companies calling me from all my medical bills when I was in the hospital so many times. I called one back today to set up a paareyment arrangement, explained Im on disability and can pay only $15 a month. The total balance is over $1,000. She said $15 isn't near enough not even on a hardship account. I said I totally got where she was coming from but I cant pay it. She then started asking if I have parents who can help me and I just said "Well, my mom is disable and my Dads dead so no." Then she started asking do I have friends....family..etc. I said no. No one can help me with this.

I understand its her job and maybe she doesn't even like it and Im not mad at this "Rachelle" I spoke to. But I hate myself for being crazy and not working and not able to pay this stuff off. Its affecting my credit now. That's about all I had going for me.

Its not enough that Im stuck with this stupid illness but its destroys everything.

I don't even see the point of trying anymore.

It's not like you went out and bought a fur coat that you are trying to keep without paying for. Medical care is a necessity. You have a right to get medical care that you need, even when you cannot afford to pay for it.

Whoever provided you with the medical care (or their agents) have a right to try and collect from you. They have a right to sue you for the money you owe. However, if all you have is SSDI and you don't own valuable assets like stocks, bonds, real estate, then you are doing very good to pay even $15 per month. Even if they sue you, no judge will order a garnishment of your disability check. That money is untouchable by creditors. If that is all you have, then you can just stop worrying.

Yes, they will be aggressive and ask all kinds of foolish questions. They will suggest you sell your blood. They will suggest you go to your church and ask for money. They will suggest you take out a loan somewhere and pay them off with the proceeds. They are legally allowed to make all these suggestions. But you don't have to pay one bit of attention to any of that stuff.

Did you know that you are under no legal obligation to even talk to them on the phone? It is a good idea to talk to them because they will start calling your mother and pestering her, if they can't get a hold of you. They'll call any siblings you have also. I recommend talking with them on the phone to prevent that. But make yourself a broken record. Say, "All I can do is pay the $15 per month, and that is the best I can do." Tell them that you have no income other than SSDI, if that is the case. If you have no assets, tell them that too. This way they know you have nothing to be sued for.

If they call you back soon after you've explained your situation, just say, "I have explained my situation to you and nothing has changed since the last time we spoke, so I am going to have to say good bye now." Then hang up.

Will this ruin your credit? Well, it won't do it any good. But ask yourself if you really need to even have credit.

Every state has a statute of limitation on debt. That means that, after a certain amount of time (usually 3 to 6 years), they can't sue you for the debt. That will be on your credit record for a certain number of years, and then it will go away off your credit record. Technically, you still owe the money, and they can keep calling and asking for payment for the next 50 years. But they won't do that. It's not worth their while. That statute of limitation only applies to a debt that you have totally defaulted on. It does not apply so long as you are making any payments, even small ones. So these creditors are lucky to be getting the $15 from you. But they won't admit that to you. Go to this link and look up the statute of limitations for your state: Statute of Limitations on Debt Collection Sorted by State You'll have to pick what category of debt your medical bill is. That might depend on what paperwork you signed.

Here is another link with some good advice from the state of Georgia. Governor's Office of Consumer Protection

Start reading stuff on the rights of debtors. It is no crime to be poor and owe money that you don't have the means to pay. Unless, you committed some fraud when you went into debt, you didn't break any law. Also, the law of the land allows you to take care of the basic necessities of life before you have to go paying off debts. So don't sweat it.

Very well said, Rose76, I couldn't have said it better myself.

Halliebeth87, please know that you are FAR from alone in this situation. I, for one, am in the exact same boat as you are. Yes, it can be stressful when those creditors are calling but, at the same time, I know that there is no feasible way I can pony up the cash they are looking for (I, like you, live on a very small disability) so I just tell them (the creditors) the straight-up truth and if they don't like what they are hearing, well, too bad for them. Honestly, they should be thankful that you are even willing to pay them anything because, considering your financial circumstances, you could actually get away without paying them a red cent (as Rose76 said above, creditors cannot touch your disability payments). If you have already explained your situation and they keep calling it's simply because they are trying to "scare you" into sending them more cash than you can afford and, obviously, it is also what they get paid to do. However, don't let them scare you into doing what you cannot do; do the best you can and pay them what you can as that is all you have to do.

Thanks. Im just so upset because I hate that Im in debt. I don't won real estate. I live with my grandmother. All I own is a car. That's how pathetic I am. Theres no way I could live on my own. I pay all my own bills with the disability check I get. I do have a newer car but I had a great job when I got it. Then I had to leave the job because it was wrecking havoc on my bipolar symptoms...bad stress! So I took another crappy paying daycare job and did the best I could before everything went completely insane and I ended up getting fired. I was unemployed a long time before getting disability. After paying everything I owe...I don't have much left for the month. My car allows me to get back and forth to pdoc and t appointments. We don't have public transportation and no one can take me.

So yeah. Difficult situation. It feels nearly unfair.

I'd say don't pay them a cent, you need your 15 dollars a lot more than they do. If anything I'd say get their addresses, and send them a written letter demanding they do not contact you further...then all they can do is sue, but that costs them money and disability money is not something they can dig into so kind of unlikely they would bother. Other posters mentioned them maybe trying to get ahold of your family members but not sure they can all necessarily do that, I certainly have not had any trying to contact my siblings or parents about my debts...but I guess it wouldn't surprise me they'd attempt that.

It is an unfair difficult situation, and those creditors certainly aren't making it any easier...but yeah they will say anything to try and get you to give them money or more money but don't take their word for anything they say since any information they get they try to use to get you to pay them. But if you can't afford to you shouldn't be paying them a thing.

I want it to all disappear. I cant handle this. Its hard to remember to send it let alone afford to send them anything but I want it to disappear. I think she didn't like how I responded about the parent question.... "My moms disabled and my dads dead so..no!"

It's always the poor people who feel so guilty if they have a debt that they cannot pay. Lots of wealthy people have blown off debt at difficult times in their life, and they don't carry the guilt that you have. There is an old saying that most self-made millionaires have declared bankruptcy at least twice in their lives. It's not true of everybody, but it is true of an awful lot of people . . . . and they lose no sleep over it. Look at those big banks and financial companies that got those big bailouts from the federal government. Nobody at those companies is losing sleep about being financially irresponsible on such a huge scale that they ruined people's lives. So cut yourself a break . . . . you didn't ruin anyone's life.

Here is my advice for how to stop feeling bad. Ask yourself if you committed any fraud. Never lie on any application for credit. If you have never lied, then, in the eyes of the law, you have done absolutely nothing wrong.

A lot of credit is given to poor people by banks and big retailers (like Walmart) that they know darn good and well are risky loans. Morally, a lot of these loans/credit should never have been given to consumers in the first place. I'm talking about credit that is given to poor people by firms that know they are helping people to get into debt that they can't afford to be in. They do it to collect big interest rates. Sometimes they do it just to be able to put it down as an asset on their balance sheet, even when they know a lot of this debt will never be paid off. (If you owe a company money, that debt is an asset to the company. It makes the company look richer than before they loaned you the credit.) Those are the parties who should be feeling guilty. When and if it becomes clear that you are never going to pay them off, then they have to take it off their books, which makes them look poorer on paper. As long as they can get you to make any kind of payment, they can keep it on their books as an asset. So they are motivated to go keep you making any kind of payment, so they can avoid or postpone the day when they have to write it off as a loss. That's why I say they are lucky to be getting that $15 per month.

You should not borrow money to buy consumer goods that you cannot afford. Medical care is a whole other matter. When you are sick and need medical care, you have a right to try to get it. If you can't pay the bills later, that is nothing to feel guilty about. Every emergency room has a sign up that says you have a right to emergency care regardless of your ability to pay. That's the law of the land. The facility that you went to would not have given you the care you got, if they didn't think it was necessary.

To be honest, I am inclined to agree with Hellion, about whether you should even be sending in that $15 per month. Your grandmother probably has more of a right to that $15 than the party you are sending it to.

You say that "It feels nearly unfair." If you educate yourself about what the law actually requires of you, you'll find that it actually is pretty fair. (At least I think so.) The law doesn't say you have to pay this debt in your current circumstances. Unless your car is a band new custom Lamorghini, the law doesn't expect you to sell it to pay your debt either. The law doesn't say you have to live on rice and beans and never buy yourself some new underwear. The law says that you should spend your disability check on the basic needs you have and stop worrying. The law even puts up a statute of limitations that means this dept will someday disappear.

The debt collectors calling you up aren't going to tell you what your rights are. Even that is fair. It's not their job to educate you. That's your job.

By the way, someday, if you are in better circumstances, you will be able to borrow money again. You won't get the lowest interest rate available, and that's fair too. Actually, you'ld be very surprised at how much credit is available to people with bad credit scores. So don't worry about your credit score. Just live honestly, never lie on any application for credit, and don't go trying to get credit for consumer goods that you really can't afford. In a few years, Walmart will be very happy to give you a few hundred dollars of credit. For some purchases, you won't even have to pay interest. That's how "fair" the system is.

Lastly, if you get sick, whether with psych issues or other medical problems, go to the hospital/clinic and get the care you need. Thanks to Obamacare, you should be eligible for some type of coverage. If not, then that is more the fault of your state than of you. So don't feel guilty. Until you are eligible for Medicare (2 years after you were granted disabiltiy), go get on Medicaid. If your state doesn't have an expanded Medicaid plan that will take you, then the hospitals you go to should be mad at your state politicians, not at you. Medicaid can even be retroactive to some extent. So go to your Income Support office and look into it. That is your fair obligation . . . . not paying medical bills you can't afford.

Ive never lied. I don't have a credit card. I only have my debit card for checking account. I dont go on vacations or anything. I might do a small activity close to home but its almost always free or very cheap!

Im trying :/ The only loan I have is a car loan. its a 2013 chevy cruze.....family pressure. my grandpa co-signed and I didn't want a new car. theyre crazy about that. they wanted me to get a good car to keep a long time. I was working then. :/

now it helps me go to dr and t appt. no other way to get there.

gah

Sounds like you are not a big abuser of credit. That's good.

So you got a nice car, but it came with a good hunk of debt. Well, what's done is done. Be glad you have this decent car, which may well be a blessing to you for a long time.

Everyone has family pressure. Sometimes families push us in a good direction. But growing up and maturing means there comes a day when we run our own show. Maybe your family is a bit over-protective. Sometimes that can be as detrimental as abuse. You can't change your family, but you can decide to not get so pressured in the future. It is a bit of a challenge when you are living with family, but where there is a will, there is a way.

I'll bet learning to deal with your family is a bigger problem for you than dealing with your debts. They sound like decent folk and they provide you with a place to live. But you want to be emancipated. That is a healthy goal. Think about what that would take.

I did my credit debt and finally paid it off!

I have been in your situation for a very long time. When I first went on disability, the collectors were really pesky, asking all kinds of personal questions. One asked me if I had a TV and if so, I was living beyond my means. I told her it was a very old TV and she could come get it if she wanted to.

I used to get so upset after they called. I'd cry all day. Sometimes they made me cry. I finally came to the realization that there was nothing they could do to extract money from me. I also felt a lot better when I understood that the collectors bought my debt for pennies on the dollar and whatever money they can guilt me into paying was certainly more than they paid for the debt. I wasn't robbing my health care providers. At least they got their 80%.

My only debts are my unpaid medical copays--the 20% that Medicare doesn't cover.
I never agreed or promised to send ANY MONEY to the collectors. When they called, I calmly told them I was single, my only income was social security disability, I did not own a home or any real estate and had no assets of any value. After 2 calls, they never called any more. I don't even get nagging mail. It has been several years since I received a phone call or letter from a collector.

Ah yea I have three sitting here waiting to have a payment. It makes me cry. Everytime. I hate myself for being like this

It is not your fault. Life just isn't fair. Don't let it bring down your self-esteem or cause anxiety or guilt. This is just the way it is. The number one cause of bankruptcy now is medical bills. Those are people who have homes and some assets they want to keep but the bills are so gigantic they could never pay them off. So they file bankruptcy to erase the debts.

In our situation, there is no need to file bankruptcy. We are "judgement-proof." That essentially means that even if they took you to court and won a judgement, you have no assets they can touch. (they can't take your car as it is needed to receive medical care.)

The three bills sitting there waiting for payment: Write the following on statement or letter:

"I am totally disabled and my only income is social security. I am single. I do not own a home or any real estate and have no assets of any value. Please do not contact me by phone or mail again unless you start legal proceedings."

and then mail it.

The law requires them to not contact you if you ask them not to. And they are not going to start legal proceedings against you. It would be throwing money down the drain. It costs $120 to file for court case, $50 for the sheriff to serve you with papers (your state may differ a bit in costs). If they proceed, they have to pay their attorney. It would cost more than what you owe and even if they win, they can never collect.

If they do serve you with papers, DO NOT IGNORE the summons. If you do nothing, they win the case by default and that is exactly what most people do (a big mistake). Answer all information requested and talk with the collector's attorney that filed the case. They will stop proceedings when they realize you are destitute.

I had one collector that actually did file a case and I was served with summons by sheriff. The debt was about $1200. I answered the written interrogatories and mailed them. Then their attorney called and she agreed to not pursue court collections. She sent an agreement for me to sign and they stopped the legal proceedings. Never heard about it again. Case closed.

Thanks I hope that never happens to me

As lifetime says above, if your only income is social security, that money is "judgement proof." No judge is going to allow anyone to take any of your social security check from you.

There is a statute of limitations on debt, but the time period doesn't start until you default on the debt. Each state has their own rules on the limitations period, but it's not all that long.

Just make yourself a broken record to collectors, if you really don't have the means to pay. They are trying to get you shook up, but you don't have to let them do that. And you don't have to answer questions like, "Do you have a TV set?" You don't have to answer any questions, for that matter. They are not the police investigating a crime. You have not committed any crime.

Barclays Bank started the process of suing me, and I received a court summons. I ignored the whole thing, and nothing ever happened. Actually, I think it is illegal for them to threaten to sue you, if they are not serious. That's considered illegitimate intimidation. When I didn't even respond to it, they called and asked if my only income was still SSDI. I said yes, and I haven't heard from them since. There is no point in them suing me when I have nothing they can take.

The summons looks scary, but actually, if your situation is like mine was, you can ignore it. That means they win by default, but they are going to win anyways. The suit is just to get a judge to declare that you do owe the money. Well, you know you do. So they are going to get that judgement anyway. But the judge declaring that, "Yes, this debt is legitimate." doesn't mean the judge must order anything to be done about it. If all you got is income from Social Security, it will be a pointless judgement.

As the poster above said, tell your creditors exactly what your income and assets are, if you are truly poor. Then they won't bother to sue you.

OMG

for two of my bills-its the same hospital and I filled out their financial assistance forms hopeful but never expecting any help.

THEY RESOLVED BOTH MY BILLS ENTIRELY!!!

$9,533.25.

I cried for hours.

That's great. With that worry gone, I hope you feel your life is more manageable.