Hi didi,
First things first - send a debt verification letter to this attorney to verify that this person IS authorized to collect on this debt ("Authorized" means that the person is either acting as an agent for Capital One or the person bought the junk debt portfolio from Capital One and the person now owns the debt). There are really good examples of DV letters on this board. Send the letter certified mail return receipt requested.
If the person is authorized to collect the debt:
1) Are you able to pay any of the debt? If so, negotiate with the creditor to pay the debt. However, be careful if you are negotiating to pay less than what you owe. The creditor may report the difference to the IRS, and you may either have to pay taxes on it, or your disability benefits will be affected (if you're collecting benefits from the government) because it will count as income.
2) If they sue you and win, and you are collecting disability benefits from the federal government (SSDI or SSI), you have nothing to worry about about wage garnishment - federal stipends, such as Social Security, are exempt from wage garnishment except for delinquent taxes and for back child support - here's the law: edited However, if you own property, they can put a lien on your property.
You may also get a visit from the sheriff's office to find out what you will be required to sell in a sheriff's sale to satisfy the judgement.
If you are able to work in the future, they may be able to attach a wage garnishment on your paycheck (you'll need to check your state laws on that).
3) If you can't pay the debt because of your income AND you own no property, then the last resort is you may want to consult a bankruptcy attorney about filing for bankruptcy. Because you are collecting disability, you may be able to file for Chapter 7 bankruptcy. If you have to file for bankruptcy, good bankruptcy lawyers will let you pay the fees in payments.
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Hi,
Our Credit Repair Discussion Guidelines frown on posting links to sites that promote and\or offer credit repair services.
Thanks for your participation!
- Tusc
Message Edited by Tuscani on
09-08-2007 08:36 PM
