Disability income only (can they still collect?)
I am 50 years old and have been disabled by a neurological disorder that is a progressive disease. I live in Kentucky.
Before I became disabled, I did have very good credit. Qualifying for disability took over 2 years, (with $0.00 income). Now my only source of income now is disability income, and is less than $1000.00 monthly.
This debt collector is trying to collect a $400.00 dollar debt.
I was told by a credit counseling agency that they can not collect or garnish your disability income.
Is this true, partially true, or false? Thank you very much for any information you can provide.
Reply from DebtCollectionAnswers.com:
We're so sorry to hear what you are dealing with.
You got some good advice. Generally disability income is safe from creditors except for certain types of federal debts.
If you can't pay the collector and you don't believe there is anything they really do to compel you to pay then you can send them a cease contact letter and ask them not to contact you again.
They may just stop trying to collect or it's possible they will sell the debt to someone else - so be sure to keep records of all your correspondence about this debt.
Please keep in mind we cannot offer legal advice. If you have questions about your legal rights contact a consumer law attorney.