Tried to set up payment arrangements - Help!

by Kindra
(Batesville, IN )

If I am being taken to court and I try to make payment arrangements and/or settlement offer and they refuse me, am I still responsible for the debt?

All I was able to pay was $50.00 per month and they refused am I still obligated to pay? They know I am on disability and they want more than I can afford. I only make $802.00 per month and still have to pay rent, utilities, phone, etc. I did have a payment arrangement and did fine with that until I was laid off from my jobs. I had breast cancer surgery in May 10.

We go to court next week. I tried to make different payment arrangements and tried to settle for a one time offer. Tried to see if they would work out anything. The owner said no. Please answer this question b/c I go to court next week.

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Sep 03, 2010
debt you can't pay
by: Gerri & Mary


Your creditors are not obligated to accept the whatever amount you can afford to pay each month, and if you default on a debt, it is probably well within their rights to take you to court.

Having said that, the old saying that you can't get blood from a stone may be true here. They can take you to court, and they may even successfully get a judgment against you, but that doesn't mean they will be able to collect from you.

From what you are saying, your only income is disability income, which is often protected from creditors. In addition, it doesn't sound like you have wages for them to garnish, and we assume you don't have other assets they could go after or you would have paid the debt already.

Nevertheless, it's essential that you at least show up in court to tell your side of the story, and to help the judge understand that any attempt to collect the full amount immediately would be a hardship for you.

We would also recommend that you immediately try to get a a free consultation with a bankruptcy attorney. You don't say how much you owe, but we assume it's not enough to alone justify filing for bankruptcy. However, the bankruptcy attorney can tell you what this creditor can and cannot do to you if it's able to get a court judgment against you. It's really important for you to understand whether or not you are what's called "judgment proof," because you don't want any unwelcome surprises (such as the creditor taking money from your bank account) if there is a judgment entered against you.

If you go to court on your own, try to remain calm and state the facts simply and directly. Explain that you have tried to make payment arrangements you can afford. It may be helpful for you to type up a basic list of your income and expenses see how that information handy if you need it.

I am sure this must be very stressful for you, but try to take it one step at a time. Hang in there.

Mar 19, 2011
by: Anonymous

How much can the collector take from your payroll check and can they take mine and my husband's.every week I live in Arizona.

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