I was sent a collection letter from attorney, request to settle for 200. i am on disability, dont have 200 laying around.

Attorney answers (2)

1. 

   Charles Smith

   Sandusky Chapter 7 Bankruptcy Attorney

   Contributor Level 15

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   Lawyers agree

   Answered February 12, 2013 11:38. You don't have to worry about collection on this debt. If what you say is correct and you have no assets, then you are "judgment proof," You also can not be arrested for owing debts in the US. We have abolished slavery. And a creditor can not attach your spouse's home for your debt. So your creditor will take nothing.
   
   However, you did not say what this debt was for. If it is a debt for a "necessary medical expense,"your spouse may be responsible for that debt.
   
   Most often attorneys do not sue for low amounts. Instead, the debt will eventually be sold to debt-purchaser for 1-5% of its face value. The purchaser will try to find other debts of yours to buy up and accumulate. Then the purchaser will file suit for the entire amount. The purchaser is entitled to take a judgment against you, but they have no way to collect. Hope this makes you feel better. Good luck.

   This answer is not intended to create an attorney-client relationship and may not be relied upon as legal advice.... moreThis answer is not intended to create an attorney-client relationship and may not be relied upon as legal advice. A careful examination of the facts is necessary before a legal answer may be relied on. You should consult your own attorney before taking or refraining from any legal action. less

   • Ross Smith, Attorney, 419-502-0051

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2. Licensed in PA

   

   Stewart Crawford

   Media Debt Collection Attorney

   Contributor Level 16

   Answered February 15, 2013 20:42. You cant go to jail for this. Moreover, if the attorney for the creditor values the case at only $200, it is highly unlikely they will file a lawsuit over this sum; the court costs alone could match the value of the claim with no guaranty that the costs could be recouped. You can write to the attorney (via certified mail) and request that all collection efforts cease. This tactic won’t eliminate the debt but it should eliminate annoying collection calls and letters. Essentially, Federal and State Laws exist to stop unwanted communications by debt collectors, regardless of how much money you owe or how many payments you’ve missed. If you notify a debt collector (in writing) that either: 1) you refuse to pay a debt or 2) you want the debt collector to cease further communication attempts; that debt collector is required by law to stop all communications with you except to notify inform you if they plan to take any further action (e.g., file a lawsuit or arbitration). § 805(c) of the Fair Debt Collection Practices Act.,
   
   I have some more information on my webpage that may be helpful: http://www.crawfordlaw.org/blog/understand-the-...
   
   
   Stew Crawford, Jr., Esq.
   
   Crawford Law Firm
   A Full Service Law Firm Serving Individuals and Families in Pennsylvania and New Jersey
   
   223 North Monroe St.
   Media, PA 19063 (Philadelphia Area)
   877-992-6311
   www.crawfordlaw.org

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