@Anonymous wrote:
I would try to make arrangements with them, but they told me that what I wanted to pay wasn't enough. I did a lot of research this morning and found a form answer to the complaint they filed against me. I was thinking about filing a motion for an extension of time, but I don't need to do that now. I also found out that i can make them prove I owe this debt (which they might not be able to do). I never asked them to verify the debt. I was too sick to do anything during the period when they were pusuing this debt, so I can request that now. I also found out that the fact that my present income is only SSI is a valid defense to the lawsuit, so I'll be using that information too. Thanks for the advice.
Belver
First the bad news ... SSI is not a defense to a lawsuit. Even though one's sole source of income way be SSI, a creditor may still obtain a judgment against you. The problem is when they try to collect on that judgment.
Fortunately you may be luckier than you think. First of all, do not -- not -- miss the court date. If you do, they will obtain a default judgment against you Even though you may be what we term "judgment proof," with that judgment the judgment creditor can still attach your bank accounts. Granted they generally cannot take your SSI, they can have your account frozen until such time as you prove that the funds in that account are exclusively from SSI and during that time period you will have no access to the money in your account to pay bills or daily living expenses.
Now that we have established that you will appear in court, there are a few things you can do that will help relieve the pressure. First, make the creditor prove the existence of the debt. Be careful in that you do not outright deny a debt that you know is valid, but suggest that there may be some doubt as to whether the debt is truly yours or not. To do otherwise risks total alienation of the judge and the creditor and you want to enlist their assistance in solving this issue to everyone's satisfaction -- especially yours. Assuming that the creditor can prove the debt, you want to make sure the judge is aware that the reason you did not pay the debt is not because you simply didn't want to. Make your situation known and inform the judge that you did attempt to make payment arrangements subject to the reality of your situation, but the creditor refused them. Often a judge will establish a payment plan for you and, if you complete the plan, not enter a judgment against you. This is called a stipulated judgment. Think of it like probation. Make sure you do not agree with anything that you are not sure you can comply with.
At the same time you are explaining the above to the court, make it known that your sole source of income is SSI and that you otherwise have no assets. Knowing that you are "judgment proof" should encourage the creditor to accept a payment plan that you can live with.
Worst comes to worst and they obtain a judgment, you need to take steps to avoid your bank account(s) from being attached / frozen. Depending on what state you are in, there are various steps you can take to negate the consequences.
Starting Score: 627 EQ, 621 TU - 11/15/08
