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I sent out cease and desist letters to my creditors. I am on social security disability. The creditors keep sending me bills.

Grand Rapids, MI |

total original debt to creditors was $9300. With all the late fees and added interest it exceeds that. I have recieved no letter from an outside collection agency. It has been about four months since I sent out the cease and desist letters.I would like to know what my next step should be. I recieve about $220 a month giving plasma. I wonder if the creditors can legally take this income. I recieve $746 from Social Security. I recieve $200 monthly in food benefits. I cannot afford to pay creditors anything.

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Attorney answers 4

Posted

If you have no assets that are above the allowed exemptions under the law, you are what is known as judgment proof. This means that should a creditor sue you, they have no way to collect. Your income cannot be garnished.

You can ignore the letters if you like. If you get sued at some point in the future, you need not worry about having money taken from you.

You may want to file a bankruptcy just to avoid all the hassle. Since your funds are short, I would check with a local legal aid organization in the county in which you reside for a legal aid attorney.

Please be advised that the advice to you herein does NOT establish an attorney client relationship and that our firm does NOT represent you in any Bankruptcy matter.

Posted

I would agree with the othe attorney that you are essentially "judgment proof". The money that you receive from donating blood may, however, not be exempt from collection. I would suggest not depositing it intothe same account as your social security. You do not mention if you own a home or other assets. I would suggest that you have a consultation with an experienced bankruptcy attorney - many offer free initial consultations. You can also check with the Bankruptcy Court in your area about free or low cost assistance.

Nothing in this response should be construed as legal advice, or establishing an attorney-client relationship.

Posted

Based on the limited facts you presented, it is likely that you are judgment proof as social security disability is exempt from judgment. Your plasma income may be subject to collection if it is sitting in a account somewhere and a creditor takes a judgment.

Posted

They are allowed to continue to bill you as long as the debt is valid. As previously stated, you are likely judgment proof but if you do have assets such as a home etc. The creditors might be able to attach it unless you declare bankruptcy.

Disclaimer Information on this site is provided by attorney Clint Curtis as general information and not specific legal advice. Specific advice can only be provided after a complete analysis of all information related to the asker. No attorney-client relationship is established by the use of the information provided. If you have additional questions please contact the law office.