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Financial institution refused to lower my payments or make other offer.

Arlington, VA |

Since I've been out on disability I've had a lower income, and difficulty paying some financial institutions. Every bank but one made payment arrangements. They refused to lower the payment even temporarily. They normally give customers three chances to get right, but refused me on a second attempt. I asked for help in August 2013. I had two credit cards, a small loan, and a line of credit they put into a loan of $12k. I faxed them my loan docs, and they lost them, and then accused me of not sending them, and told me to go to a branch to sign them. I sent my proof of income (only SSD), however they also asked what my health problem (my disability) was, and wanted a letter from my doctor. They claimed it may help me. I'm upset, and don't know what to do.

Attorney Answers 3


  1. Your creditors are not required to negotiate with you, even if you have suffered substantial hardship. If they have made requests, then your options are to either provide those answers, or refuse to work with them any further.

    If you are permanently disabled, with your sole income as SSDI, and you have no significant assets, then you may be collection-proof; that is, they may be able to get a judgment against you, but never actually collect from you. In that case, if they will not assist you you may not even want to bother continuing to work with them. You may also want to consider filing bankruptcy.

    This response is not offered as legal advice, but is only a general informational response for public interest. No one reading this is authorized to claim that an attorney client relationship exists with this writer or the writer's law firm. If you have found my advice helpful, please mark it as such; if you believe my response is the best that you have received to this question, please mark it best in thread.


  2. Unfortunately there is no requirement that the banks work with you on payment arrangements. You might want to consult with a bankruptcy attorney to see if that would be a good solution for you.

    The information provided herein is general information only and not legal advice. The information provided herein does not create an attorney client relationship and is not a substitute for having a consultation with an attorney. It is important to have a consultation with an attorney as the information provided in this forum is limited and cannot possibly cover all potential issues in a given situation.


  3. My advice is to seek counsel for bankruptcy. Since the creditors are under no obligation to work with you, they will likely file for judgments in the upcoming months. Since your only income in SSI, they cannot garnish and keep the funds, but it may be up to you to bring that fact to the Court's attention. I would get ahead of the problem by possibly filing a Chapter 7, before it comes to one or multiple pending garnishments.