I was wondering if there was a way to help pay collections agencies? I have so much debt due to medical bills and need to pay off over $7,000. I'm on a very fixed income & budget & am worried about bankruptcy. I need help. Also, can a collection agency take you to court?

Hello Melissa:

Help? Like what? Donations? Charity? Nahh. There's no help for that.

But there is something you can do, and I'll tell you what it is. You need to expand, and simplify your thinking. You're in an "either/or" situation. Either you find a way to pay it all off, or you find a way to not pay anything. If you stay in the middle, you'll pay, and pay, and pay, and never pay it all, and never improve your credit.

Bankruptcy?? What's to be afraid of?? It's certainly no worse off than you are now, and it DOES have its advantages, like the collections will stop, and you won't have to pay your bills. That ain't bad. The bk will come off your credit report in 10 years. The collections will come off after 7 years. Big deal.

However, depending on your age, your future, and the nature of your very fixed income, you might be judgment proof. It's not a legal term, but it has the same effect. In answer to your last question, YES, collection agencies can take you to court.

But here's the key about your fixed income. If it's SS, or SSDI, in MOST instances, it CAN'T be garnished. So, even if they did sue, and won, they won't collect anything. They're going to know this before they even contemplate suing you, and they're not going to throw their money away chasing you when they know they're not going to get paid. That's the effect of being judgment proof.

I don't know the details of your situation, and the details DO matter.

excon

ANY creditor can take you to court over a debt. The question is whether they will win (to win they simply have to prove you incurred the debt and did not pay it). But getting a judgement doesn't mean they get their money. They have to find some assets of your s that they can legally attach. If you don't have any, that's what excon meant by being judgement proof.

As he also said, we would really need to know a lot more about your situation to advise further.