Anonymous
Anonymous asked in Business & FinancePersonal Finance · 3 weeks ago

How to deal with debt collection when unemployed and penniless?

For a list of unfortunate circumstances (medical, leading to unemployment) I've had to accrue debt and have been unable to pay. Some collectors understand, some don't. Some ask where I live now (with family) and if they can help me pay. This is not something I will ask of them. I'm at the point where I can't even afford treatment and if it wasn't for family I'd be homeless. Any suggestions? I've been answering the calls and I'm not hiding, but "create a budget" or "make a payment plan" doesn't work when you have nothing to spend. I was asked by one to sell my car (which, by state and federal law, would be exempt from any collections in court), and even then that wouldn't cover it. Bankruptcy seems like an option, but I can't even afford the filing fee, let alone the courses.

9 Answers

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  • Anonymous
    3 weeks ago

    Live under a bridge on the expressway.  Tell them you can keep this up for the rest of your life!  You ain't got nowhere to be.

  • Anonymous
    3 weeks ago

    You can pretty much ignore them.  You can't get blood out of a stone as the old saying goes.

  • 3 weeks ago

    Is your medical issue permanent, if so seek advice of a SS Disability councilor.   Just temporary, let them know of your intention to make good once you've recovered. They have bought your debt from the original lender, but its still a debt.  Let them know that with patience they'll get paid and give them a time frame. 

  • 3 weeks ago

    You would not qualify for bankruptcy, and you are very wrong about their being prevented from attaching your car.  If they sue you and get a judgment against you, which they would since you owe the debt, taking your car is a simple process called attachment.  In fact, they could take everything you own but they won't bother with the small stuff.  A car, they definitely would.

    Source(s): Certified Paralegal, with 25+ years' experience.
    • Samuel3 weeks agoReport

      Unfortunately, that would qualify as protected by state and federal law as the vehicle is worth approx. $900, and filing exemptions is free.

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  • 3 weeks ago

    You do nothing. Most importantly, you never, ever talk to a debt collector on the phone, for any reason. If you know they are calling, you do not answer. If you do answer, you hang up as soon as you know it is a debt collector. You do not even say "hello".

  • 3 weeks ago

    i dont think they can bother you if you dont have the money to pay them back

  • Anonymous
    3 weeks ago

    Without money or a job, they cannot do a thing to you. Bankruptcy costs a lot of money.

    Either block their calls, ignore them or send them "cease communications" letters.

  • KaleyK
    Lv 7
    3 weeks ago

    The best thing you can do is communicate with the debt collectors.  If you literally have no income and no assets, you should tell them that.  Sure they will suggest you get others (family, etc.) to pay your debt because they don't care where the money comes from, they just want to get paid.  Politely tell them NO.  And that you have no income and no assets.  If you truly do not have any income or assets there is nothing from them to get from you.  They will continue to pursue you and you can continue to communicate the same message; no income, no assets, thanks for calling, have a great day!  Bankruptcy does cost money, it does affect your credit for many years, and it makes most debts (not all) go away.  You should study and explore that option; many attorneys offer free consultation.  Some day, hopefully, you will have income & assets and those pesky debt collectors will still be there unless of course you have discharged your debts in a bankruptcy. 

  • 3 weeks ago

    About all you can do is stop answering the calls.

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