Collection agreement but now can't pay - will they sue?

[Anonymous]

So in 2014 I had a massive stroke, could not work in my trade anymore and was approved for disability. I was forced to use my Chase card to buy food and pay bills. Previously I had a TU FICO of just under 800.

I maxed out the card at $6,500. Couldn't pay it because I couldn't work. Ended up settling with MRS Associates collection for $193 month.

I have paid off $1,500 on the account so far but I am now almost 7 months pregnant. Don't judge... I have been medically infertile for 25 years and this was a total freak - doctors never thought it could happen. Very high risk pregnancy, lots of meducatyand doctor appointments.... I've been working in addition to disability as I'm only capable of working part time after the stroke. I am allowed to earn 1k a month. But now that I'm getting really big and uncomfortable I can only work a day or two a month.

So now I am REALLY struggling to pay this $195 per month. I missed a payment and they're harassing me
I know all the rules for dealing with collections people.... But what are my options? Can I negotiate like $50 a month or something so they don't sue me?? I'm just lost. I'm trying to stock up on diapers, baby clothes, crib, etc... It's all so expensive. Been buying yard sale everything except bottles.

[Anonymous]

It won't let me edit this - that should say I work a day or two a WEEK not a month.

[medicgrrl]

Have you talked to them about your circumstances?  The worst thing to do is avoid them.  Call them and explain why you need to renegotiate the payment plan and see what they'll agree to.  Maybe agree to a short term reduction until you can get back on your feet.

[RobertEG]

There is a statute of limitations within which a party must initiate any civil action seeking a judgment on a debt.

It varies by state, and is usually in the 3-6 year period.

However, if you enter into a payment agreement, begin making payments, and then cease the agreed payments, that default has its own statute of limitations that effectively "resets" their period for bringing civil action from the date of the new default under that payment agreement.

Bottom line is that if you cease making the agreed payments, it will likely reset the SOL from it original begin date based on your original default on the debt.

Will they sue?

Obtaining a judgment does not itself assure they will get anything.  They can, after obtaining a judgment, return to court and request a separate attachment of assets or garnishment of pay in order to secure payment of the judgment.  Your assets may be shielded from attachment and your income shielded from garnishment if below a certain level, or if of a certain type, such as SSID.  You should consult an attorney regarding what assets or income may be shielded from attachement or garnishment under the laws of your state.

Debt collectors will attempt to assess your ability to pay, such as by asking you questions or pulling your credit report to assess your current financial situation, prior to deciding whether to bring civil action and go through the time and expense to secure a judgment.  A judgment may actually be of little value to them if they cannot then get to your money or assets.

If you attempt to renegotiate your current payment plan, they will likely ask you lots of questions about your current financial situation, thus providing them info as to whether or not it would be fruitful to seek a judgment.