Being judjement proof

michael455 · #1 Apr 27, 2008, 02:55 PM

I am seriously in debt but am 62 yrs old and considered judgment proof due to all my income being from social security disabilty. I would give anything to pay these debts off
but am not able nor am I able to work. I have thought of bankruptcy but just to get a new start but that would cost me money that i dont have and since i am judgment proof why hould i even consider bankruptcy. I have tried to pay on some of my accounts but find it impossibl to repay them all. Will a creditor even bothering going after me in court if I am judgment proof. I would feel the same moral obligation to pay the debts back whether or not im judgment proof or if i filed bankruptcy but you cant get blood out of a turnip. Any advice.

SBU · Apr 27, 2008, 05:43 PM

Most businesses wouldn't go after you in court because, as you said, there are no wages to garnish as payment of the debt. However, I also would not recommend just letting the debt charge off. They will probably continue their efforts to collect the debt because it is your obligation to pay it. Frankly, I would just do everything you can to pay it. If you have cable, cancel it. If you have other things that are not necessities than get rid of them. If there is stuff you could sell on Ebay or at a garage sale, then do it. Bankruptcy is not the way to go unless you literally have no assets and have pretty much done everything possible. Maybe you have done all this, but it needs to be said for everyone else that may read this. If you do end up filing bankruptcy, I would say to file Chapter 13 and get on a payment program arranged by the court, instead of just trying to get our of the debt for nothing.

Good luck to you and I hope things work out. Again, if you have already tried these things it is still important for anyone else reading that may be thinking of bankruptcy.

michael455 · Apr 27, 2008, 05:58 PM

Thank You Steve Yes I would pay these debts if there were any way i could.I have stayed away from bankruptcy because i have sincerely bee trying to pay these bills.i am currently with a debt elimination company and pay more than i can afford on a monthly basis they negotiate with creditors and after collecting feees for themselves start with dengoitating settlements with creditors beginning with those i owe the elast to but my credit continues to deteriorate. Thanks again.

oneguyinohio · Apr 27, 2008, 06:03 PM

You may continue being hounded by collection agencies, and you may get summoned to court, adding legal fees to outstanding debts. All of that works against someone who can not pay off debts. The companies build up high fees for all of the legal cost involved, and may eventually write off all of that as bad debt.

Consider carefully about sending small payments sometimes that do not do much to pay off any balances. That money would serve you better to pay an attorney to file a bankruptcy for you. Some attorneys will let you make small payments until you build an amount with them sufficient for the filing fees. That might be 25 or 50 dollars a month or some other amount that you may be able to negotiate with an attorney for the services. You don't have to feel rushed into anything, and also you will know that your payments will actually go toward stopping the debt collectors in the end, rather than interest fees eating up all of the payments you might be able to afford. I have been in the position in the past where I could only afford a small payment but the interest was double what I was paying, and there was no end to the growing debt. There are times when bankruptcy is the best choice. Just know that you wont be able to get much credit for quite a while afterward, but hopefully you be able to stay away from that vicious circle in the future. Don't let the stigma keep you in over your head and getting subjected to all the ridicule from those collection agencies on the phone.

I once asked one of those collection agencies guys if he had ever heard the expression that you cant get blood out of a turnip... he said yes... then I said well I'm a turnip. One of us hung up, but I got a good laugh about it.



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